"Rising demand and constrained supplies are a recipe for higher agricultural prices," notes Elliott Gue.

The contributing editor to Personal Finance explains, "The big winners are commercial farmers and companies whose products enhance crop yields. And one company equipped for growth in this market is Deere & Co. (DE), a new addition to the our model Growth Portfolio.

"For nearly 175 years, Deere has manufactured a wide range agricultural equipment, including tractors, combines, harvesters and sprayers.

Leave it to our representatives in Washington to make a compromise that ignores most of their previously stated beliefs -- of only a few days ago. This just reinforces again the old joke "How do you know when a politician is lying?..."

Monday the Obama administration and congressional Republicans came to an agreement to extend both unemployment benefits by 13 months, and the Bush-era tax cuts for all by two years. What happened to the Republican and Democratic noise about fiscal responsibility and reducing the debt?

A few days ago Republicans were not going to vote for an extension of the unemployment funding if there was not an associated revenue offset to pay for it. That's gone, so the deficit is going up. The Democrats claimed they would not back an extension of the tax cuts for people that earned over $200,000 for individuals and $250,000 for joint returns claiming this would add $900 billion toward debt reduction. That's gone so the deficit is going up.

Companies on a shopping spree either feel their growth is confined or they are feeling flush. In the case of Caterpiller (CAT), which reported that it is going to buy Bucyrus for $8.6 billion, it is the latter. The company has had a terrific year in which it has seen a 76% increase in it's growth. This rapid increase in business has pushed the PEG ratio down to a low 0.86 with the stock trading near its 52- week high.

From what I can gather, the deal between CAT and Bucyrus has merit. Does that mean this is a good time to buy Caterpillar stock? I don't think so. More often than not, stocks trading near their highs will present better entry points with greater value to the more patient investor.

Is it time to take a bite out of Apple, Inc (AAPL) or leave it on the vine? After reviewing the current list by examining the stock yields and price-to-cash flow (P/CF) we will take a look at Apple for 2010.

Yesterday I dropped two stocks, but the list is still too long. In the coming weeks there will be more cuts and if I find anything of more value perhaps there will be something new.

Today it's time to do some trimming of the fourteen stocks and four options on the contenders list. This review will prioritize the companies by price-to-book (P/B), price-to-sales (P/S) and return-on-equity (ROE). This does not preclude more possible stocks being added and the final list will not be done until the end of the month.

We will also compare recent stock prices to three-year highs to give us a relative idea where the stock floated in rosier times.

Only three weeks to go before the list of contenders are finalized into my ten picks for 2010. There were 14 before I added three more today and moved one of the stocks on the fence up, leaving another three still on the fence.

I continue to read everything I can get my hands on and recommend doing the same to anyone else seeking to do some stock picking. A lot of the recommendations I come across project possible appreciation of 10% to 15%, and that would be great, but I am seeking at least the potential to double that.

We started this review with 25 stocks of companies noted for their quality of management and how successful they have been at nurturing new leaders as presented in Fortune magazine. After running them through a serious screening process using universally agreed upon key metrics, the list has been reduced to six candidates for potential investment.

I will reiterate that there is no imperative to invest in any of them even if they might be among the best opportunities from a select list. While I think all of the original companies listed and stocks screened are well regarded that does not mean now is the right time to invest.

Regardless of the outcome of this process, and since price and timing are critical, it would be smart to create a stock watch-list with the inclusion of all six of these companies.

Yesterday I started a review of 25 companies that Fortune deemed most successful according to their peers in developing quality leadership. Today I review the remaining 20, searching to find the ones that might be worth investing in.

Price-to-book (from 11/27/09) was used as the first value screen. The theory being from a value investor's perspective that buying for a price at or near the break-up value of the company provides downside protection. Of course that is easier said than done.

Earnings season is winding down, but there is still some excitement left for earnings-confessional spectators. Up tomorrow ahead of the opening bell is Deere & Co. (NYSE: DE), manufacturer of agricultural machinery.

Analysts are expecting per-share results of 57 cents, which represents a drop of 57% from the $1.32 banked in the year-earlier period. Year-over-year quarterly revenue growth, however, has not endured quite as dramatic a fall, slipping 16.7%.

Deere & Co. (NYSE: DE - option chain) shares are rising today after the company reported a second-quarter profit of $472.3 million, or $1.11 per share, beating analysts' estimates of $1.07 per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DE.

DE opened this morning at $44.52. So far today the stock has hit a low of $44.00 and a high of $47.50. As of 11:45, DE is trading at $46.20 up 2.38 (5.4%). The chart for DE looks bullish and S&P gives DE a positive 4 STARS (out of 5) buy ranking.

Agricultural equipment icon Deere & Co. (NYSE: DE) is scheduled to step into the earnings spotlight next Wednesday, August 13. Ahead of the firm's third-quarter report, analysts surveyed by Thomson Financial are expecting a profit of $1.37 per share. During the previous four quarters, DE has managed to meet or exceed Wall Street's expectations three times; during its second-quarter report, released in May, the company fell short by one penny per share. At the time, Deere warned that rising material costs could put a dent in third-quarter and full-year earnings.

However, it seems that some speculative investors have a short memory where Deere & Co. is concerned. Option activity on the stock is leaning distinctly bullish ahead of earnings, which could set the stage for a sharp downside move in the event of another profit miss.

The International Securities Exchange (ISE) reports that DE boasts a 10-day call/put ratio of 5.80. This data, which measures buy-to-open activity among retail-level investors, reveals that traders have purchased nearly 6 times more calls to open than puts on DE during the past couple of weeks. According to the ISE, option activity on the stock has not been more bullishly skewed at any other time during the past year. That's a rather bold optimistic bias, considering the stock has shed 28% year-to-date.

TheStreet.com's Jim Cramer says not even the collapse of ethanol can touch the planting renaissance we're seeing.

The agriculture bull market had been linked to ethanol. Turns out that ethanol is only one piece of the puzzle. What we are seeing for everything from fertilizer to farm equipment to seeds is that there are so many uses and calls on crops that we are having a planting renaissance that hasn't been seen in years.

We have an amazing moment in ag: we are supply-constrained for everything. Fertilizer demand is far exceeding supply, so you get an Agrium (NYSE: AGU) (Cramer's Take) buying a UAP (NASDAQ: UAPH) (Cramer's Take) -- and Agrium goes up.

Fewer players, tighter supply, no new plants coming on to speak of -- this is an amazing moment.

Spurred by demand for ethanol, U.S. farmers have planted more corn than ever before: 92.9 million acres. The bumper corn crop was front and center at this year's Farm Progress Show in Decatur, Illinois, which shows off the latest in farming trends and technologies to an increasingly global audience.

Despite recent protests in France over its genetically modified crops, St. Louis based Monsanto Company (NYSE: MON) not only featured new drought- and pest-resistant corn and soy products to international dealers, but also hoped to shop for the best characteristics of foreign crops from those dealers.

Deere & Company (NYSE: DE) took the opportunity to showcase its biggest roll-out of new products -- from tractors to cotton pickers -- in years. They also featured their recent expansion into international markets, including western Europe, South America, and China. Incidentally, Deere has just announced a stock split and increased dividend.

U.S. Agriculture Secretary Mike Johanns attended the show and took the opportunity to urge Congress to restore the 2007 Farm Bill to more closely resemble the White House version. He also urged Congress to ratify pending free trade agreements with Panama, Peru, and South Korea.

Decatur-based Archer Daniels Midland Company (NYSE: ADM), which recently announced an organizational restructuring, and Peoria-based Caterpillar Inc. (NYSE: CAT), which has its own expansion plans in China, were also represented at the show.