Update Deere (DE)
Deere (DE) is both a stock and one of the most reliable indicators of the fortunes of the agricultural sector.
No matter whether you own Deere (the shares are a member of the Jubak Picks 50 long-term portfolio) or are waiting for a turn in the sector as a whole, you should be very happy with the earnings, revenue, and guidance that Deere reported this morning, February 17.
Sell Deere (DE)
Sometimes the words are worse than the numbers. And that’s the case with Deere’s (DE) November 25 guidance for fiscal 2010, which began on November 1, 2009.
The company said fiscal 2010 earnings would come in at $2.12 a share on a 1% decline in sales. First quarter fiscal 2010 sales will be down about 10%, the company projects.
That’s no big deal and I’d be inclined to sit those numbers out and wait for the turn in Deere’s business that everyone expects in fiscal 2010.
Except for the words that the company used in describing fiscal 2010 sales. Those words lead me to sell Deere out of my 12-18 month Jubak’s Picks portfolio. I’m keeping the stock in my long-term Jubak Picks 50, however.
