bear_mkt

Dispelling the Gloom: Examining a Few Healthy Companies

Diverse list of choices. Big Lots has the advantage of not ever getting mentioned by the press when they talk about discounters in a tough retail market. (WalMart holds that honor.) Since BIG is undiscovered by the business press, there's some publicity upside left.

BIG is also a play on a change of administration. A post-election stimulus plan could benefit BIG. Also, there's a large short position in BIG. A change in the White House could mean that the laws against naked short selling may finally be enforced by the SEC.

Agco is another wall-flower. It never gets as much publicity as the more US-oriented Deere. A lot of AG's operations are overseas, which I like. That adds growth potential and international currency diversification (and some considerable risk in this market) to a portfolio.

AGCO: Combines May Be The Story in 2008

Hey Andy, thanks for the link to the author's portfolio performance, but lighten up. Its just his opinion.

Nobody should buy anything based on a Seeking Alpha post (or a Barrons, Cramer, WSJ, Forbes, Merrill, Goldman or other report/ recommendation) or a gushy press release from corporate management, without doing his/her own due diligence. However, all these sources are good places to pick up ideas to research. Just my opinion.

AGCO: Combines May Be The Story in 2008

Good article. AG is the proverbial "Rodney Dangerfield" of the farm equipment sector. It "gets no respect." Big brother DE, with its big US presence, seems to get the good press play.

I like AG for a several reasons. AG's got good international diversification. AG's more of a pure play on farm equipment. I see a lot of DE logos on construction equipment around here. Construction will be weak for a while. Advantage, AG.

Even with recent price swings, grain prices will likely remain above prior years level, giving farmers plenty of incentives, and cash, to buy equipment. IMHO, AG's a good place to be in the farm sector. As with any ag-stock, the ride will be bumpy.