I Bought Deere & Co. (DE)

During the last trading session, I bought Deere & CO (DE), after a strong breakout the price had.

The company is not facing good momentum based on its fundamentals.

Cash to debt is 0.13 and is underperforming the industry.
ROE is 27.43%, outperforming the industry but far from the maximum Max of 44.93%
ROA is 4.27%, averaging the industry, but far from its all-time-high of .6.2
ROC is even worst at 11.01%, averaging the industry but thousand miles far from the all-time-high of 35.35%.

P/E is quite cheap at 13.26  but the price is 7 times bigger.
Forward P/E is 17.30 (price is 5 times higher).

The last date to own the stock to cash the yield of $0.60/share of the 3 August was yesterday, so I don’t think I will get it. Usually we must hold the company few days earlier.

Anyway I didn’t buy the company for the yield. Let’s add some graphs.

And then the weekly one

During the last trading session the price broke a good resistance at $93.50 / $94 that has been tested many times in the past :

the 15/02/2011 the price didn’t go over it. Few days later, on March and April, same year, the price crossed it and the got immediately pushed back to $62.

The 30/01/2013 another test, and again the price went back to $79.

The 13/05/2014 again another test, and again the price went back to $79.

The 26/05/2015, one month back the price did another test, it failed, but this time did not have any strong correction; it went back to $90 and the started another test but this time (yesterday) looks like it finally overtook $94.

Of course as I said, the same thing happened on March 2011, so let’s apply a good stop loss at about half the candle of Friday or even at $94. Is possible the price will go back to test that strong resistance and make it as its new support.

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