Deere & Co. (DE)

(A Top Pick July 25/12. Up 17.70%.) Crop yields look like they are going to be lower which means crop prices are going to be higher. Crop insurance covers off the farmer. Also, international markets are very strong for this company.

Large and successful company selling into agriculture area. Benefited in the last years from resurgence in agriculture. Were hurt by weak corn prices but generally as a long term hold, this is one of the better way to play this trend. This trend is one he believes in. They have exposure in South America. The improving US economy will benefit them.

South America will be a very good catalyst for them. Crop insurance in the US helped the farmer. 50% farm equipment.

Producing a lot of cash and capital allocation is a very, very big topic of conversation in corporate America right now. You can expect that the dividend will grow at a fairly rapid rate. We are embarking on a time when there is greater and greater need to increase planted acreage. 2.2% dividend yield.

CAT reported big earnings and are in the same sector. Sometimes there is a couple of trading days and then the correction starts in the sector. Thinks it will remain in a trading range. Sometime over the next couple of months.

(Top Pick Nov 23/11, Up 13.73%) Missed on some expenses. A good long term secular story. Farmers are doing well even with the drought.

(Market Call Minute.) This is one she is looking to add if things play out in the fall.