Archer Daniels Midland Company (NYSE:ADM)
CAPS Rating:
The Company is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products.
The Company is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products.
Recs
Well diversified agriculture business selling at tangible book value and 29% below Graham number. Earnings recently dropped off a cliff to a 7 yr low and ADM is selling at 14x those low earnings, but only 8.5x 2011 earnings and 9x 2010 earnings. I hope to see those earnings revert closer to the mean in the next 1-3 years and this volatile yet cheap stock (again selling at tangible book value per gurufocus) should grow with it. Head I win, tails I don't lose much? I did NOT do much dilligence on this one. It is strictly a CAPs pick and not something I would not buy in real life.
Sorry about the double negative. I have no intent on buying this in RL.