Bunge Limited (NYSE:BG)

CAPS Rating: 4 out of 5

The Company, together with its subsidiaries, is an integrated, global agribusiness and food company operating in the farm-to-consumer food chain.

Recs

1
Player Avatar MrCainThaler (53.34) Submitted: 2/3/2011 9:32:51 AM : Outperform Start Price: $67.71 BG Score: -10.17

BG is an agricultural stock with nice exposure to the commodity spikes which began in late 2010. They have a storage and distribution network which means they will be able to take immediate advantage of the new, higher prices, which will likely only appreciate further with the destablization of the middle east and extreme weather conditions accross North America.

Incidentally, the stock has other advantages, such as coming off a shipping and process plant freeze in Argentina (recently intervened on by the government) and large exposure to sugar cane plantations and bio-fuel which grant them large subsidized revenue by the Brazilian government.

Fundamentals are solid, with a value of $75-77 dollars, trading at a discount, and stable and growing earnings, coupled with a dividend of a few percent.

Warnings by management of lawsuits which will come from the recent purchase of the sugar cane business segment and operations throughout South America may be something of concern, barring developments, but for now the company is a buy.

http://ibankcoin.com/mr_cain_thaler/2011/02/01/wheat-shall-triumph/

Member Avatar deltafox2 (< 20) Submitted: 2/9/2011 2:23:43 PM
Recs: 0

Included in Juback's Picks for the next decade recently, so barring another meltdown probably a good investment

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