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$32.15 3.36 (11.67%)
10/13/2008 2:36 PM

The Andersons, Inc. (ANDE)

CAPS Rating:
**

An entrepreneurial, customer-focused company with diversified interests in the agriculture and transportation markets and has developed specific core competencies in risk management and an understanding of commodity markets.

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Avatar luvb2b (99.94) Submitted: 6/27/08 3:56 PM : Outperform Start Price: $41.63 ANDE Score: 0.99

This is a stock trading at roughly 8x 2008 earnings and has been growing earnings 20-50% annually for the past several years. You won't find a cheaper diversified agriculture play in America.

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Avatar luvb2b (99.94) Submitted: 6/27/08 5:59 PM

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This diversified agriculture, rail, and ethanol company has grown earnings dramatically over the last few years. 2005 EPS of $1.69 were 35% better than 2004. In 2006 earnings improved 29% to $2.18. In 2007, it's an eye popping 73% gain to $3.77. The midpoint of guidance just released (which has always been conservative) is for 22% growth to a range of $4.40-4.80 for 2008. This management has been so consistently conservative with its guidance that I have to believe the real numbers are closer to $5.00 for 2008 (33% growth in EPS).

Today's stock price means you get a company in the red-hot agricultural and rail sectors with average annualized earnings growth of 30% over the last 4 years at a P/E ratio of 8 times 2008 earnings and 11 times trailing earnings. For comparison, the Potash/Mosaic/Agrium crew trades at 40-50 times trailing earnings and 10-12 times forward earnings. Anderson's earnings growth is more consistent than all of them.

Oh yes, let's not forget that the Anderson's Roman candle was lit in 2006 by Jim Cramer who featured it on Mad Money for ethanol. I still remember that show and Jimmy if you're reading this, it's time to revisit the Anderson's.

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