Wednesday, May 20, 2009

Deere and Price Realization

Deere (NYSE:DE) has come up with a new way to talk about price increases. Read today’s press release carefully and you will see they keep referring to "improved price realization". Hey if you can sell for a higher price that’s great. We are all capitalists here so no one should be embarrassed. But of course it allows you to sanitize the whole price and margin discussion and provides management with improved wiggle room if, as and when prices drop for some reason.

We need clarity in communication not increased buzzwords.