Buffett's Deere (DE) Bet is Still Solid, Even Amid Q4 Miss
Tweet Send to a Friend
Get Alerts DE Hot Sheet
Price: $86.29 -1.02%
Overall Analyst Rating:
NEUTRAL (
Down)
Dividend Yield: 2.3%
Revenue Growth %: +9.0%
Overall Analyst Rating:
NEUTRAL (
Down)Dividend Yield: 2.3%
Revenue Growth %: +9.0%
Trade DE Now!
Some speculation has been made whether Warren Buffett might be crying into his bowl of Sugar Smacks this morning following Deere's (NYSE: DE) quarterly miss, as reported earlier.
The answer, of course, is no. Buffett doesn't cry; doing so is neither profitable nor a good value.
Other than that, let's do a quick recap. Buffett's Berkshire (NYSE: BRK-A)(NYSE: BRK-B) disclosed a new stake in Deere, established sometime in the third quarter. Well, let's say Buffett waited until after Deere's third-quarter report in August, when shares dropped to $75.50 or so. With Deere at $85.99 as of Tuesday's close, Buffett is up 13.9 percent.
If Buffett got in before the report, Deere maxed out at $79.95 or so in mid-August, for appreciation of only 7.6 percent.
So, if Deere drops off 4 percent to 6 percent over the next couple of days following the report, that puts shares somewhere in the $81 to $82 range, making Buffett's bet still a good one.
He is the Oracle, after all.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The answer, of course, is no. Buffett doesn't cry; doing so is neither profitable nor a good value.
Other than that, let's do a quick recap. Buffett's Berkshire (NYSE: BRK-A)(NYSE: BRK-B) disclosed a new stake in Deere, established sometime in the third quarter. Well, let's say Buffett waited until after Deere's third-quarter report in August, when shares dropped to $75.50 or so. With Deere at $85.99 as of Tuesday's close, Buffett is up 13.9 percent.
If Buffett got in before the report, Deere maxed out at $79.95 or so in mid-August, for appreciation of only 7.6 percent.
So, if Deere drops off 4 percent to 6 percent over the next couple of days following the report, that puts shares somewhere in the $81 to $82 range, making Buffett's bet still a good one.
He is the Oracle, after all.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Crash in American Electric Power (AEP) & NextEra Energy (NEE) Adds to Jitters
- Angie's List (ANGI) CEO Oesterle Defends Against Citron Article; Says No Scheme in Place
- Bulls and Bears Do Battle in Aeropostale (ARO); Turnaround Intact?
Create E-mail Alert Related Categories
Hedge Funds, Insiders' BlogRelated Entities
Warren Buffett
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
