Green Tractor Talk banner

1 - 12 of 12 Posts

·
Registered
Joined
·
166 Posts
Article I found.

Deere Rises 4% Pacing Gains in Producer Durables Index

Deere & Co. rose 3.7 percent, the biggest move since Feb. 4, and more than 14 times its industry group.

The shares climbed to $81.24 from $78.32 in the previous session. Trading volume was almost double the average for this time of day. Deere's move compares with the 0.3 percent rise in the Russell 3000 Producer Durables Index and almost no move in the Standard & Poor's 500 Index.

In addition to the rising stock price, trading in Deere's call options was 2.1 times more than the average of the past 20 days.
 

·
Registered
Joined
·
2,929 Posts
I don't understand the optimism, even after reading the above post...financials are not my strong suit. We produce fluid power fittings for several groups at work and all of them have forecasts showing reduced sales and most of them have forced us and the rest of their suppliers to participate in global auction competitions to even retain the current business with them. They claim that Deere and Cat et. are demanding to pay less for components. Lived this nightmare my whole career, as in a truck maker for example demands to pay less for products we make for them or else threatens to move the business from us. But year after year the price of trucks climbs. Perhaps Deere gave all their suppliers a 4 percent haircut.
 

·
Premium Member
Joined
·
1,788 Posts
Meh....I ignore stock price moves with any actual news story. I work for Ford and it's :banghead: how when we report great news like the best year of profits :gizmo: in the history of the company and stocks go DOWN?????

The fluctuations rarely make any sense, so I always look over the more long term trends of historical tops/bottoms to make my moves. That chit will go back down.
:munch:
 

·
Registered
Joined
·
166 Posts
The market is always forward looking. So if things are great, but the market thinks it's priced in and the future will worsen, things go down. And vice versa. This maybe a case of that.

Commodities, broadly speaking have been beaten up for quite a while now (including various agriculture). Those trends seem to be changing, or at least bottoming. So maybe the market is trying to get ahead of that. After all, the market has predicted 10 of the last five booms. :laugh:
 

·
Registered
Joined
·
3,920 Posts
Discussion Starter #7
I don't obsess over it and I only randomly check it. I've gotten used to seeing a red number since it has been going down for a while. I thought it was interesting that it had a big jump in one day. I don't think I'm going to get rich off of DE, I don't really own that much of it. I do keep some because I believe in the company and their products, so I make it a point to own what products that I can and a little piece of the company too.
 

·
Registered
Joined
·
375 Posts
84.26 1.90(2.31%) went up some more today
Still hasn't recovered to 2015 august levels

Did the dividend get raised? The sites I go to can be months behind on accuracy. It isn't a bad dividend stock looks like about 3%. I have trouble figuring out what the actual dividend is seems displayed as a percentage. It must be effected by currency exchange rates.
 

·
Registered
Joined
·
754 Posts
Deere's biggest customer base is farmers. And farmers are facing a very bad fiscal 2016 and 2017 may not be any better. Farmers will not be buying much equipment for a while. But the idiots on Wall Street don't understand that. And their construction and forestry equipment are slow now compared to a couple years ago. It's 1984 all over again for Mother Deere.
 

·
Premium Member
Joined
·
8,785 Posts
Deere's biggest customer base is farmers. And farmers are facing a very bad fiscal 2016 and 2017 may not be any better. Farmers will not be buying much equipment for a while. But the idiots on Wall Street don't understand that. And their construction and forestry equipment are slow now compared to a couple years ago. It's 1984 all over again for Mother Deere.
You don't remain on "Wall Street" very long by ignoring the basics. :unknown:

Often, movements are a result of forecasts, but they can also be driven by a myriad of events such as insider activity, employment reductions, material costs, commodity prices and the list goes on and on. Deere is focusing on new sources of revenues outside of equipment sales, such as their field data services, etc. They are diversifying revenue streams away from heavy focus on agricultural and construction equipment sales, which is a good thing.

Deere is just launching their Deere Green Days across the U.S., which is one of the biggest retail sales events of their year for "consumer" equipment, much of which Deere finances. Deere also has numerous licensing agreements with other retailers which focus on other than agricultural sales.

The options activity on Deere is as much to explain for the share price change as anything. In institutional trading, large options positions were taken, some of which require equity positions be held, hence the increase in share volume during those specific trading times. In a nutshell, this bump in price could be as much about Options positions taken as the underlying financials of a company.

It is worth noting that many people trade options in manners which permit an investor to make money as a companies stock increases in value but also one can make money on the decline of a stock's value, depending upon the positions taken and methods used. You can obtain the details of the specific options positions taken, which are likely tied to a specific future date.

Rarely is it one thing in the news which has caused a movement like this in the stock price. I see the options trading on this stock as the primary reason why there has been a volume increase and subsequent share increase.
 
1 - 12 of 12 Posts
Top