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Terex Corporation Message Board

  • jamessmarson3 jamessmarson3 Aug 20, 2013 4:24 PM Flag

    Anyone know why Deere is so cheap?

    CAT is trading at about 12.3 times earnings wth negative growth. TEX is trading at 17.5 times. MTW is trading at 17 times. AGCO is trading at 10 times and Deere is at 9.5 times with 22% growth.

    I have had it on watch for a long time but haven't yet done any research besides follow its quarter over quarter record results.

    So before I begin researching it. If someone has good reasons why it trades at a huge discount..

    Is something supposed to happen in 2014 I don't know about!. Anyways I will figure it out over time but your guys help would be appreciated

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    • Monsanto may provide some clues as to why DE is so cheap. DE should move with MON.

      • 1 Reply to cronjms
      • hmm at first I was going to say that is dumb! since its a bio type company but when i gave it some thought perhaps it could give some background into the price.

        Thanks. I will put it in the back of mind when looking into it. Its hard to find companies with Deere's track record selling under 10 times. Also its a blue chip stock. So its exciting finding something like that. However thorough research needs to be done to disprove the thesis that the stock is cheap.

        That is my key to investing. While others put in 30 hours and buy a stock because of the time they put in. I can put 30 hours and conclude that 30 hours was a waste of time and I am not buying the stock.

        I bet most fund managers have models find cheap stocks then put in 60 hours of research and always buy the stock they researched. This means all the research was meaningless since t hey never actually used it.

    • James, you are the master, we all wanna your idea. for DE, commodity is not so popular and hot now, big funds are selling the asset from commodity and staples, such as future price of corn, wheat, etc. Hence, DE suffered, imo.

      • 1 Reply to casper_g_chen
      • lol k thanks, that is some good insight for me when I develop a theory on the valuation of Deere. I guess the logic is that farmers won't farm as much if food prices are low. Or they won't make new eqpt purchases if prices are low.

        Interesting theory. It is interesting that Deere's Q4 is expected to be lower than last year. Anyways ya DE seems like the most interesting company in the manufacturing sector at the moment.

 
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