BUY
Just a transaction company so no credit risks involved. Sold off on the financial regulation bill that was passing in the US but have come back. Can be volatile but will do well in an up market. Expect them to grow their bottom line by 20% over the next 3-5 years.
SELL
Good time to take some profits. Done very well but getting expensive at 17X earnings.
BUY
Good diversification with beverages and snacks. Frito-Lay is about 30% of their business. Will be investing about $2.5 billion in China over the next few years. Bought their bottlers, which has been accretive to earnings.
BUY
Have been quietly restructuring and streamlining over the last few years. Getting back to their knitting as a global industrial company. (GE Capital made money last quarter.) Can grow at 12%-13% and will earn about $1.30 next year.
BUY
Caterpillar (CAT-N) or Deere (DE-N)? Caterpillar has about 70% foreign exposure and Deere has about 40%-45%. Deere relies on farmers to be able to afford equipment. Deere is good and trades at a good multiple, a couple of points higher than Caterpillar. (Prefers Caterpillar.)
BUY
Caterpillar (CAT-N) or Deere (DE-N)? Caterpillar has about 70% foreign exposure and Deere has about 40%-45%. Deere relies on farmers to be able to afford equipment. Deere is good and trades at a good multiple, a couple of points higher than Caterpillar. (Prefers Caterpillar.)
DON'T BUY
Food and agriculture. A lot of risk such as crop failures, input risks of ag commodity prices.
STRONG BUY
Great value here. Should earn about $7.50 a share.
BUY
Fabulous company. Great operating leverage. Represents good value here.