Archer Daniels Midland Company (NYSE:ADM)

CAPS Rating: 4 out of 5

The Company is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products.


Player Avatar JohnCLeven (76.22) Submitted: 12/5/2012 12:55:23 PM : Outperform Start Price: $26.13 ADM Score: +15.20

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.

Member Avatar JohnCLeven (76.22) Submitted: 12/5/2012 12:56:49 PM
Recs: 0

Sorry about the double negative. I have no intent on buying this in RL.

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