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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (54964)	2/18/2015 7:06:10 PM
From: E_K_S	1 Recommendation Recommended By Mattyice Read Replies (5) \| Respond to of 78648

Art's-Way Manufacturing Co. Inc. (NASDAQ: ARTW)- misc agricultural equipment Ag Growth International Inc. (OTC Markets: AGGZF) - grain handling, and storage and conditioning equipment AGCO Corporation (NYSE: AGCO)- Ag equipment mainly tractors CVR Partners, LP (NYSE: UAN)- fertilizer Martin Midstream Partners LP (NASDAQ: MMLP)- owns a fertilizer subsidiary Hi Robert - These are the pure Ag companies in my portfolio(s) that I own. I would like to increase my exposure in this sector but have a hard time paying the premium prices for those companies not on sale (ie Deer). Other than my recent add to ARTW, my most recent buy was AGCO. That was a value pick based on it's Graham No. value. Stock is already 19% from my purchase in January. These stocks represent a 4.3% portfolio position. All pay some sort of a dividend too. The two fertilizer companies are the most volatile of the group but I continue to accumulate shares at these lower levels and will eventually peel off my high priced shares when the commodity cycle turns higher. I really do not see what Buffet sees in DE but as a long term investor, he probably is betting on (1) an up turn in the commodity cycle, (2) some type of replacement cycle for farm equipment, (3) everybody has to eat so new equipment means new efficiencies which translates into high production. DE does carry a lot of long term debt, more than any of my companies when you look at current net income to long term debt. That was a big reason why I went w/ AGCO. I would feel comfortable increasing my AG exposure to 9% of the portfolio if/when the right buying opportunity presented themselves. As you know, I have been watching the ETF CORN as a possible indicator for an AG sector boom cycle. But it's still quite low and not helping out much as a forward cycle indicator. Even the fertilizer companies are slightly higher w/ CORN price at/near multi year lows. Maybe Buffet is seeing food inflation a few years out. I did notice that for the first time in several years farm land prices have fallen. As you also follow this sector, do post your favorite value AG investments. I am always a buyer if the value is there and I do like dividends too. EKS