Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Non-Tech : New Holland and the Ag Equipment Group -- Ignore unavailable to you. Want to Upgrade?

To: Terrapin who wrote (82)	5/16/1999 7:07:00 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 113

<<If the NH/CSE merger goes through then I can see Cat pouncing on Agco.>> Pounce <g> well put <<Agco would be very isolated otherwise and I would be concerned about overlap for Deere.>> Ag offers much broader international exposure...Deere might like that in recovering global economy. AG farms out a lot of production...DE could provide that and use presently unused capacity at the expense of others. AG may have a lead in global positioning technology, at least they talk like they do, DE might want that. AG's multiple brands may give Deere opportunity to improve quality and position brands for various sectors of market. Part of AG's price weakness is due to less robust balance sheet...DEERE offers that. While DE's stock currency isn't exactly cheap it's still more highly valued than AG's thus normalized earnings may be accretive. <<Cat has construction and wants agriculture. JMHO. >> Mine too. <<All too often I have made a good buy and then watched as my gains slowly trickle away>> Been there too. But gains on my keepers seem to leave at a quicker pace. But there are many other situations where I've sold early and watched gains continue to accrue to the more persistant. There's something to the idea of holding winners even when they may appear fully valued. All that said, take a hard look at the receivables in the latest NH release. If the market takes a hard look at NH and decides some of those earnings were really the result of moving inventory from NH to NH dealers with NH providing financing...they might get out the clippers and give it a haircut. I think Jim Clark mentioned something earlier in this thread about the idea that unsold inventory on dealer lots should be considered as part of the company's inventory even though it's not listed in the financials. I'm no expert on this and could be completely off base. Good luck with NH, Bob