We are downgrading our rating on AGCO Corp. (AGCO) from Neutral to Underperform. The company is witnessing soft demand conditions in most of its markets due to the significant slowdown in the global economy.

The near-term outlook for agricultural equipment is extremely uncertain, especially in Europe, which represents a major portion of the company's total revenue. Given the continued slowdown in the global economy, tighter credit markets and unfavorable foreign currency exchange rates, AGCO expects 2009 revenue to decline 20 23% from $8.4 billion in 2008.

Also, the company forecasts 2009 EPS in the range of $1.30 $1.50, compared to $4.09 in 2008 due to weak sales and lower margins.Zacks Investment Research

AGCO Corp. (AGCO) reported second-quarter earnings of $0.64 per share, above market expectations of $0.55. EPS results were down 52.2% year over year due to deteriorating demand for agricultural equipment in all the major markets and increase in engineering expenses.   Net sales in the quarter were $1,579.0 million, down 34%, compared to the second quarter of 2008. AGCO is experiencing soft demand conditions in the most of its markets. Sales in North America were down 4.3% as weaker sales of lower horsepower tractors more than offset strong sales of high horsepower tractors, balers and implements.

Unit retail sales of lower horsepower tractors were down due to weakness in the landscaping, residential construction, and dairy sectors. This weakness is expected to continue for the remainder of the year.   In the EAME region, quarterly sales were down 28.0% due to lower volumes in Eastern and Central Europe, Russia, Scandinavia and

...

PennyOmega.com Short Highlights Before the Bell!

PennyOmega.com Short Highlights Before The Bell!

PennyOmega.com Stocks Upgraded, Downgraded and Short Highlights Before the Bell Tuesday July 28, 2009

**************************************************************

L.B. Foster Company (Nasdaq: FSTR), a leading manufacturer, fabricator, and distributor of products and services for rail, construction, energy and utility markets, today reported that second quarter 2009 net sales decreased 27.8% to $93.8 million compared to $129.8 million in the prior year quarter. Gross profit margin was 13.7%, down 320 basis points from the prior year quarter primarily as a result of a $1.1 million ($0.07 per diluted share) warranty charge taken to recognize the revised number of concrete ties that failed in track as well

...

Accuride Corp. announced that its Brillion Iron Works Division received a Supplier of the Year Award for quality, cost, and delivery from Toyota Industrial Equipment Manufacturing, the U.S. manufacturing plant for Toyota lift trucks. According to the press release, the Quality Cost Delivery (QCD) award is received by TIEM suppliers whose quality, cost, and delivery surpass a 95 percent standard of excellence.

“Our dedication to building world class products, our constant focus on cost effectiveness, and our commitment to delivering product on time has allowed Accuride and Brillion to build strong reputations within the industry,” stated Randy Brull, General Manager of Accuride’s Cast Products. “We are extremely honored to receive a supplier award from Toyota Industrial Equipment Manufacturing, and extend our appreciation to our team members for their dedication in achieving our manufacturing goals and ensuring customer satisfaction.”

Operating one of the largest and most versatile iron foundries in the United

...

We are presenting a list of companies which we believe are currently mispriced, based on our estimate of fair value, by the market. We develop our fair value ranges by projected free cash flow out one year and estimating an appropriate FCF multiple based on our assessment of risk and the strength of the balance sheet.

Cisco Systems [CSCO: 19.57, +0.84 (+4.48%)] Recent Price $17.04 Value Range 21.86 – $38.41 Cisco Systems, Inc. designs, manufactures and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry, and provides services associated with these products and their use. The Company provides a line of products for transporting data, voice, and video within buildings, across campuses, and around the world. Its products are designed to transform how people connect, communicate and collaborate. Cisco Systems, Inc.’s products, which include primarily routers, switches, and products that the

...

Why invest in commodities? Two and a half billion people are going to live like Americans in the next 20 years and prices go up over time, that’s the nature of inflation.

We are in the middle of a global economic crisis and commodities are on sale. Buy commodities now while they are still cheap. When we finally emerge from this global economic crisis — prices will explode higher. I’m talking about another long-term bull market in commodities. Let me explain…

Inflation Will Push Commodities Prices Higher

Our Federal Reserve Chairman Ben Bernanke is an inflationist, which is an advocate of the policy of deliberate inflation achieved by increasing the supply of available currency and credit. They call him helicopter Ben because he once quoted a statement made by Milton Friedman, about using a “helicopter drop” of money into the economy to fight deflation.

Bernanke is a student of the causes of

...

Founded in 1990, AGCO Corporation (AG) is a leading manufacturer and distributor of agricultural equipment and related replacement parts. The company offers a full product line of farm equipment through a wide network of more than 3,000 dealers and distributors in more than 140 countries across the world.AGCO Corporation reported 4th quarter EPS of $1.08, above our expectations of $1.02 and up 31.7% y-o-y, driven by strong operating performance and lower tax rate. Revenue in the quarter was slightly down as higher sales in the Europe, North America and South America was offset by an unfavorable currency translation impact and lower sales in the Asia-Pacific region.Given the continued slowdown in the global economy and tighter credit markets, AGCO expects FY09 revenue in the range of $7.5 $7.8 billion, down from $8.4 billion in 2008. Also, the company expects FY09 EPS in the range of ...

One of the themes the fund is currently investing in is the secular agricultural boom as people in developing economies upgrade their food quality, as their incomes grow. Thus far, I have been focused mostly on the fertilizer companies, although the equipment and seed plays have also done great. However, in the past few days I have read multiple articles on a new ETF which, if you want to play this trend in 1 fell swoop, provides an interesting (and global) way to diversify across multiple subtrends on this play. The ETF is called Market Vectors Agribusiness (MOO) … yes MOO. How cute. Here is a fact sheet about the ETF.