Cramer Takes Advantage of Weakness And Backs Up The Truck On Deere (DE)

June 11, 2008 4:35 PM EDT

Jim Cramer, Mad Money host, has been buying Deere (NYSE: DE) for the past couple weeks for his ActionAlertsPlus.com portfolio. Today, Cramer decided to back up the truck and buy another 200 shares of Deere today, while DE was trading down 3.8%.

Jim said ag equipment sales were strong in May, and he believes Deere is gaining market share. Cramer added corn and soybean prices hitting record highs, should continue to help the cash flows of farmers. He said positive remarks from Potash (NYSE: POT), a fertilizer company, and Monsanto (NYSE: MON), a seed company, suggests that the farming segment is not slowing and should continue to help Deere's stock.

To summarize, Cramer thinks Deere is severely undervalued, has strong management and will greatly benefit from the growing demand for agricultural equipment. He noted this will be a core long-term holding for his charitable trust. Deere is actually a top-five holding in Jim's ActionAlertsPlus.com fund.

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