I am going to take advantage of the price declines in Deere (DE) and Trinity Industries (TRN) and buy more of both stocks. I will buy 100 shares of DE and 300 shares of TRN.
DE is down 18 straight points since it reported earnings. I think it is oversold, and planned price increases going forward should help offset the commodity pressures. It is a very well managed company, and 50% of its business is in agricultural equipment, which is still in a very strong up cycle.
Trinity is a great story of improving its rail business and benefiting from the wind infrastructure buildout. I think its rail business is troughing and will capitalize on its dominance in the industry, and I believe the wind business can continue to see the 40% growth, especially given its large backlog of projects.
After my purchases I will hold 5.7% of DE and 2.1% of TRN.
Regards,
Jim Cramer
DISCLOSURE: At the time of publication, Cramer was long TRN and DE.
Send email to james.cramer@thestreet.com.