Deere & Co. (DE)

(Market Call Minute.) This has no FMV to work with. Trading right on pretty good technical support right now, but that’s about the best he can say. Forecast earnings are flat.

(A Top Pick May8/13. Up 1.09%.) Sold his holdings. This is a long-term secular positive story, but within that cyclically, the replacement cycle has come and gone.

Feels the agriculture business will continue to grow and do well. Isn’t trading at a huge multiple and has a nice dividend. The other key is the construction business and if they can get this going properly, that will be 2 things working really well for the company. These types of companies do well when the global economy starts to pick up. 2.6% dividend.

Deere (DE-N) or Caterpillar (CAT-N) for at least a 5 year hold? His instincts are saying this company because it is in the food area. Certainly with the growth of agriculture, in terms of acres planted, that will be helpful to this company. At the current time, he wouldn’t touch this because farmers’ incomes are scheduled to drop next year and possibly the year after.

Just released earnings and beat expectations, but outlook caused some sell off. This is not the strong time of year for Deere. We have been turned back from the resistance level.

Thinks things will pick up in the agricultural sector. 12 or 13 times earnings. Almost 2.2% yield. There will be some better performance in this area down the road as well on their industrial side. It is not an expensive stock and if we see the growth he predicts you will do well.

Has underperformed in the last little while. Nice dividend yield of 2.31%. Trading at about 10X earnings, which is pretty cheap. The stock has a real opportunity in the next little while to move higher, simply because you are going to see good growth globally and the agricultural sector is going to do a little bit better.

Prior to Ukrainian mess he would have said to sell it. Prefers Agrium for this play. But don’t sell DE now.

10 times earnings. Historically 13 times. There is a good opportunity as the world grows to see the Ag business do well.

3 to 7 years out. He is positive but not so positive in the shorter term. USDA predicts 20-25% decline in cash receipts to farmers. Deer has already pulled back on sales to farmers. It is pretty beat up at this point. Look for an entry point at $81 and hope you get it at some point. Food product requirements in emerging markets will have to happen and that will lift Deere.

Wouldn’t own at this point. Until the end of 2013, there were huge tax advantages to the US farmers to buy new equipment. Those tax advantages are now gone. The company has also said that they think they are in for a couple of tough years of combine and tractor sales. It also looks like farmers income will be going down.

Has been looking at this and doing some work on it because it is not expensive. Trading at about 10X earnings. Good industrial that should do well where he can see reasonable growth in the US. He is looking for really good growth globally, which should help this company.

(A Top Pick March 13/13.) Sold his holdings on Aug 13/13 at $84.25. Replacement cycle seems to be topping and it could be choppy.

A Top Pick on May 8/13. He started to see a bit of a change. The replacement cycle started to look a little toppy. There have been a couple of very odd planting seasons. A super amount of moisture and then no moisture with drought conditions. That affected the habits of farmers, so he sold his holdings. Still a good long-term story, but there will be a much better entry point later.

One of his favorites. Would not buy here. He would buy it on further weakness. There is a long term need to feed the world. A leader in farm equipment. You could buy it if you are comfortable with it. Tax incentives to buy end in December. Farmers' income is done from last year.