DE update

DE aug 21 2015

So we were lucky, was it EW or the sweet smell of manure? Less than a week ago we suggested this was a sell despite the many shorts already on this stock. The company cut some expectations by about 25%, inventories are good for 7 months , for second hand equipment – this stuff lives forever! – it is twice as much. Prices for farmland are now dropping in the US. People are no doubt already wondering if this is not a good dip to buy. In our opinion it is not, not even close as we are looking ultimately for the stock to drop below $30.  Al we did today is complete wave 3 of wave 1 of C. Do not forget “Nothing runs like a Deere”