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

To: Paul Senior who wrote (75162)	2/15/2024 11:13:38 PM
From: Spekulatius	2 Recommendations Recommended By E_K_S Lance Bredvold Read Replies (2) \| Respond to of 78704

I switched my CNHI stock to AGCO in my tax deferred accounts. CNHI did pretty good for me, but now the relative valuations are about even. I like the Fendt angle for AGCO. I think there is a lot of upside, if they can develop Fendt into a premium brand in the US. What seems to be happening with these AG business is that while revenues remain cyclical, they become better at protecting their margins. If they can keep >10% EBIT margins through a downturn, then these business will be worth a higher multiple. In the past, both revenues and margin declined in a downturn, making these business very cyclical. This does not seem the case any more to same degree.