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Wednesday is a big day for Deere

posted on November 19, 2012 at 10:23 pm

If you’ve been looking for an opportunity to pick up shares of Deere (DE) on a dip, keep your eyes on Wednesday, November 21. The company is scheduled to report earnings for last quarter of its 2012 fiscal year (which ended on October 31) on that date.

The Wall Street consensus calls for earnings of $1.88 a share and revenue of $8.93 billion.

But there’s a decent possibility of negative news in the conference call. Last August, Deere warned that it was having problems manufacturing a new, more complex combine. Delays in delivering machines had reached 14 days, the company said, and some customers had begun to cancel orders. At the time Deere said that it believed it could make up for lost production in the fourth quarter that ended in October.

Are the problems fixed? Did Deere make up for lost production? Did the company’s inventory continue to swell in the fourth quarter?

Investors will want to know.

At a November 19 close of $86.35, Deere is trading near its November 1 high of $86.87. That’s a long way from the stock’s $70.59 low on June 4.

Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. The mutual fund I manage, Jubak Global Equity Fund http://jubakfund.com/ , may or may not now own positions in any stock mentioned in this post. The fund did not own shares of Deere as of the end of September. For a full list of the stocks in the fund as of the end of September see the fund’s portfolio at http://jubakfund.com/about-the-fund/holdings/

(Finally) why I added DuPont to my long-term portfolio back in January–and why I’d still buy it today

posted on June 16, 2011 at 3:13 pm

This isn’t your parents’ chemical company anymore.

For example, EI du Pont de Nemours (DD), DuPont to its friends, got 28% of its sales in 2010 from its agriculture and nutrition segment. (That percentage will go up once DuPont integrates its acquisition of Danisco, the world’s second largest producer of enzymes for biofuels and foods in 2012.) Of that 59% comes from Pioneer Hi-Bred, the world’s largest seed company.

Another big hunk of sales come from what I’d called advanced materials. For example, 10% of sales in 2010 came from electronics, advanced display, and photovoltaic products. Another 20% of sales fall into the performance materials unit that produces such things as engineering and industrial polymers. Safety and protection fibers such as the Kevlar account for 10%.

And where DuPont is still in what I’d call the traditional chemical business the company has been very good at picking its spots. Read more

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