SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Madharry who wrote (4606)8/5/1998 2:46:00 PM
From: James Clarke  Read Replies (2) of 78659
 
re: question yesterday about NH. At least three or four of us own this puppy. I talked to a senior executive today, and they are just baffled by how the market is treating this industry. They see flat sales in the next year or so, but they absolutely do not see a massive downturn coming. Pricing has firmed up a little bit since Deere and Case called a truce in late June.

As for finance receivables, he said companies in the tractor industry get in trouble when they get greedy and lend outside of agriculture. Farmers tend to be good credit risks, with land value backing the collateral and the government often willing to bail them out in a crisis. If problems were to develop, it would probably be residual value assumptions. If the market were to fall apart, used tractor pricing falls and the assumptions grounding some loans could turn out to be overstated. New Holland is about as conservative as a management can be, and my instinct is that that conservatism extends into their credit portfolio. Deere is also rock solid. Worry about Agco.

Hope that's a little bit helpful. Bottom line is that management thinks their stock, as well as Deere, is very very cheap. And there is no reason to question this management team's intergrity or ability.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News