Deere & Company (NYSE:DE)

Solid Company!

I have no idea what this area is for...need directions.

Strong Ag demand and pricing will be reflected in increased machinary purchases.

With the uncertainty in the market and a sluggish economy, larger ticket items sell off first. Look at the graph of CAT, DE, CNH, and others. They are down huge percentages. I normally do not like these stocks until we see the start of an up turn in economic numbers, but I think DE is really cheap here and would buy in the low 58-62. Protect with a stop loss but I put an $80 target here when the reality sets in that we need to increase ag efficiency and production which will bolster new equipment sells. The other stocks mentioned will lag DE buy one month or so.

Listen

John Deere (DE) is off its 52 week high of approx. $95. Currently trading at $64 a share thats a drop of nearly 33%. Granted a top was something of the past for the ag business, the decline has gone on just too far. DE was trading between 82 and 88 for the longest time, and it was only a matter of time before the support broke. However the true picture is this, people globally are demanding more food. More food translates into higher demand on farming. You dont have to be a rocket scientist to see where I am going next. The more demand on farming, the higher the need for farming equipment, in this case farming machinery provided by one of the greats...John Deere. This stock will outperform the S&P, this stock will bounce back above 70, and this stock will benefit from the development in countries such as Brazil, Russia, India and China. Two thumbs up for this late 2008 to mid 2009 stock.

Commodities prices in the U.S. are driving up ag equipment stocks. But beware: THIS IS A BUBBLE. Deere will take a massive hit when this thing bursts.

bargain

International sales are still strong, especially in Brazil, India and Russia. The weak dollar will continue to help DE as a major US exporter. At home sales are still holding steady...I think this is oversold.

The chart looks good for a short rebound. Nice situation for a covered call.

De will benifit from growth in emerging markets. The weak dollar will also help DE's bottom line

Matching the lows in January, I think Deere is poised for a rebound.

farm equpmenmt

Its only competition in the farming industry is Case IH and there products arent even close to being of the same quality. Consider the number markets that are beginning to open up overseas and this company has a great future. Agriculture is going to continue to grow in order to feed the ever growing population. Add in we will continue to look towards agriculture to satisfy our energy needs, whether it works or not and this is a no brainer.

I've tried to figure out why I like this stock for a while now, and I can't pinpoint the reason. I took a glance at their past few annual reports, saw sound top and bottom line numbers/growth, a heavy focus of its business on international/emerging markets, increased buybacks, and a growing dividend. But none of those tidbits by itself does the trick. Rather, it's the Deere story in totality that, to me, epitomizes the whole "solid American company that the whole world needs" image. We've got biofuels. We've got a growing world population. We've got hungry third world people. We've got old equipment that needs replaced. And I can't think of a good reason for this company to stop growing.

I think fundamentals are okay... trades at a slight premium but deservedly so. Rev/income growth not expected to be breathtaking but still strong and stable. Do have some questions on the balance sheet (for example, there's a huge receivables figure that seem to have been converted from long term investments but have sat as receivables for two quarters... wish I understood that more) and debt isn't ideal (though it has been steadily managed the past few years).

But I'm sold on the story. And I'm in for real money.

Deere & Company (John Deere), the agricultural equipment manufacturing and distributing giant will experience a second coming as American farmers head back to work over the next two seasons. High demand for new farm equipment and related service parts, will be due mostly to the growing Corn, Feed, and bread basket staple price now being passed down to consumers. In short it has become more beneficial to work than receive government subsidies. The American Farmer will need the next generation of fuel efficient tractors; combine, cotton and sugarcane harvesters, to meet these soaring international and domestic demands. They will also benefit from continued lower Fed Reserve rates as most of their equipment is purchased by loan.

MR. GREEN JEANS RULES

It is estimated that 45% of the U.S. infrastructure needs replaced right now! As the leading OEM of heavy equipment Deere will be the piece of machinery that moves the mountains, cement, etc... to get that done. Their newer deisel engines seem to have the kinks worked out and people are buying them. Pretty simple really. This is one of those long term stocks you have to have in your portfolio and being quite a bit off of its 52 week high it looks affordable and reasonable at this point. The election will have some impact, probably positive.

Farmers should be getting a big payoff from rising price of corn, wheat etc. I also like the moves which Deere is making in irrigation equipment.

As population increases in many areas of teh world...the need for food and effecient farming will continue to grow.