Deere & Company (DE)

sgretzy (79.61) Submitted: 12/22/07 5:09 PM : Start Price: $89.56 DE Score: -16.38

The company is well-known as THE choice in farm equipment and considering the widespread interest in ethanol (corn derived fuel), I expect that this company will do quite well. Farmers buy something other than a John Deere only when they have to. Further, note that wheat has reached $10/ bushel - the highest price ever! Considering how many farmers don't grown wheat or a winter crop at all, I think that price will make them change their mind. In the end, more farming (even more crops per year) means more farming equipment needs. Additional pluses, the P/E ratio is still under what I consider unreasonable so I suspect the yanks on Wall Street haven't quite realized the connection between ethanol and farm equipment.

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