Chances to loose 2% more and that's okay and that will let DE to jump for $100 ...For DE - Just remember - keep buying on dips not just watching .. This stock runs like a Deer!! Many big investors are staying with DE - their target is $150+
It is very strange that I just read an article about the corn prices going to be high. There is a huge shortage of corn because of the drought. Now, they use the excuse of low corn prices to sell the stock ??? Manipulation???? Any excuse.......
Buffet's minons bought the stock. The postion is very small about 340 million he probably had very little say in this trade. Deere was over $100 back in the early part of 2011. There is overhead supply from here.
Bought some 95 puts based solely on this knowledge. I think Deere looks tired as a stock. No tax credits in 2013 for farmers buying heavy machinery is going to hurt Deere's guidance. Higher commodity cost's and increased competition from competitors. Cat has been aggressively marketing its new Combine. Emerging market's especially China could be soft. Who would know better then the CFO about where the stock is headed. If he thought the stock had major upside potential I doubt he would sell. He sells exactly at the 52 week high 2 weeks before earnings. I'm skeptical. Would love to hear the bull case though.
The tax credits will be back for 2013, and farmers will be buying, but the stock is tired and has had a big run. I don't see any lower than 88.00 for a correction, at least for now. The problem
for farmers will finally be commodity prices falling because of over supply. Perfect weather this summer will make for 3.50 corn instead of 6.00 to 7.00 corn. Gross per acre 600 instead of 1200. Doesn't leave any cash for $300,000 combines. Cycles will happen. Long term jd is good, it's just high enough for now.