Analysis of Deere

Company: Deere

ISIN US2441991054 | WKN 850866

Business: An American outdoor machine producer. They have eight different product categories: Residential (lawn mowers), Agriculture (tractors etc.), Construction (Trucks and Loaders), Landscaping & Grounds Care (commercial lawn mowers), Golf & Sports (fairway mowers etc.), Forestry (harvesters and dozers), Engines & Drivetrain (diesel engines and generators), Specialized (military and rental). Their largest is however Agriculture and most people in countries conducting modern agriculture will have have seen the beautiful Deere logo.

Active: 30 countries world wide. Focus on US, Canada, Europe, Brazil, Russia, India and China. I was surprised to see that they did not mentioned Africa but maybe the infrastructure need to improve much more before Deere can establish themselves stronger there.

P /E: 9.1

Stock sold October 2015: Kernel

I no longer remember where and when I wrote about Kernel and my thoughts but it does not matter. Kernel grew to the size it was in my portfolio (around 10%) due to that I kept averaging down on my share price and now the price have started to go up. If I had not done that then I would not have had the size of the holding that I now have and I would also not have been able to sell it with a small gain but now I could do this. Averaging down worked well in this case and poorly in for instance the case of Asian Bamboo. Kernel, due to the war, could have become another Asian Bamboo (or Eniro for that matter) and I have had enough of those bad investments.

Kernel is by the look of it a good company I was just no longer prepared to have 10% of my stock portfolio in it and I therefore decided to sell off around 70% to invest in other companies.

Extra stock bought October 2015: K+S

Well, well, well... in the end PotashCorp (analysis of PotashCorp) decided to pull back their offer and the share price for K+S dropped like a stone. I was hoping for a hostile takeover so that I would be able to sell off my shares at a fair price but instead I ended up buying more.

I find it highly fascinating that the market that has been informed from the biggest competitor of K+S that the value of the company is at least 41 € per share decides that the share price of around 25 € is more reasonable. Is the competitor working since years in the business wrong or is the market wrong? I obviously consider the market to be wrong and I increased my holding on the silly drop. As I reported in K+S report Q2 2015 they are already up at 1.66 € EPS and they pay out 40-50% of their earnings in dividends so I expect a good dividend payment for 2015.

My cash was running low so I could unfortunately only buy 43 shares at the cost of 1,070.86 € or 24.90 € per share including fees. This now gives me a total of 195 shares at a cost of 4,166 € which gives me 21.36 € per share including the fees. I have now spent all the cash that was generated from the sale of MüRe (stock sold September 2015: MüRe).

To find out more regarding K+S then please visit analysis of K+S 2015.

If you want to see my current Stock Portfolio then click on the link but the portfolio will not be fully updated until the end of the month.

Extra stock bought October 2015: E.On

Just like I reported for RWE earlier this week the share price of E.On has also dropped like a stone. They also recently went out with an ad hoc saying that nuclear power plants would no longer be regarded as an asset and that they would therefore take an impairment cost. By the look of it this cost will be around 5 to 9 billion €.
It has also been decided that the nuclear energy will remain within E.On which is very much against the entire concept of splitting the company into a "clean" part and a "dirty" part.  Despite of all the troubles with E.On and RWE I am obviously so stupid that I consider that the world will only need more and more electricity and at some point in time these guys must start to make money again. When you might ask? I have no clue but until then I will wait, buy more when large drops happen and hopefully collect some dividends to keep up the spirit.

To increase my holding I bought 154 shares at a total cost of 1,136.72 € including fees which means 7.38 € per share. This now gives me a total of 400 shares and the investment is up at 4,933 € or 12.33 € per share including fees.

To find out more regarding E.On please click on analysis of E.On 2015.

If you want to see my current Stock Portfolio then click on the link but the portfolio will not be fully updated until the end of the month.

Extra stock bought October 2015: BP

My British oil giant BP went from one fire to the next one which has then also caused the share price to drop down even further. The second fire which is currently running is hitting them additionally hard to to their heavy investment in Russia which at the moment gives them little to none back. As I have so often said I invested in BP far too early and probably now would have been the good moments since they are severely pushed down. Unfortunately I have not been standing on the sideline for the last 3.5 years so all I can do now is to increase my position. So I did. This investment was made possible due to my sale of MüRe as were previously reported.

I therefore bought an additional 236 shares at a total cost of 1,049.84 € or 4.45 € per share including fees. This now gives me a total of 590 shares in BP and I have invested 3041 € or 5.15 € per share including the fees.

To find out more about BP please click on analysis of BP 2015.

If you want to see my current Stock Portfolio then click on the link but the portfolio will not be fully updated until the end of the month.