Archer Daniels Midland Company (ADM)

KenN513 (98.88) Submitted: 11/04/07 7:49 AM : Start Price: $34.53 ADM Score: 30.19

Most of us have focused on ADM's increasing production of fuel ethanol. Fuel ethanol production is ecologically unsound and socially irresponsible. That said, American consumers love it. They think that they are "going green" by using corn based fuel. I think that "green-ness" of ethanol fuel will drive stock prices over the short term. The realities of fuel ethanol, however, will eventually bite ADM.


But not hard. ADM is a highly diversified agricultural products corporation. They will be using ag products for their profits for many years. So they go back to making seed oil? It's what they do. It's been profitable for decades.


Expect them to continue to ride the ethanol boom up, then drop back to traditional levels after they've re-learned to stick to their core business.

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