Archer Daniels Midland Company (ADM)

ADM has been expanding production in key areas within the company, while also spending 'big-bucks' on efficiencies. (co-generation installations)
During this global shipping slump, ADM recently acquired 5 cargo ships (at fire-sale prices), which will fit nicely into their already vast transportation division.
Couple these improvements with an aggressive, relatively new CEO--with a defined vision, (and the elimination of the company's "good old boys' " network) and I believe we have a winner. When market conditions improve, ADM should be well positioned to take full advantage.

“The Archer Daniels Midland Corporation has been the most prominent recipient of corporate welfare in recent US history,” James Bovard wrote in a report for the Cato Institute, a libertarian think tank based in Washington, DC. “ADM [has] lavishly fertilized both political parties with millions of dollars in handouts and in return [has] reaped billion-dollar windfalls from taxpayers and consumers.”

They are in the most profitable business of current times: getting taxpayer money from the government.

Category: PV

The cash stats don't add up. Under ratios, they are a cash making machine that pays back the price in a few years. However, in their cash-flow statements, they are burning cash at an increasing rate.

I think that the alternative fuel debate and more specifcially the deamnd for less "foreign-oil" will help ADM boost their performance.

They are tied into a contract with Monsanto to improve the fuel and food supplies for ethanol.

Breakout pattern. If fails, get out ASAP

Down market after bear market rally - commodities will suffer most.

This portfolio tracks the performance of good vs. evil companies:

Evil elements:
-#2 on Toxics 100 - Worst Polluters
-Razing rainforests in Southeast Asia to make biofuel
-Exploitive labor practices
-Huge recipient of federal corn subsidies that were originally intended for farmers.

CNX on its way back up, but may test bottom before again. Coal will continue to be a primary heating / energy / power source. All environmental points are to fade away when its getting cold or dark in your place. Not to speak about the immense needs of China and India.

Is WallStreet full of it or are these really some of the Fastest-Growing Stocks in S&P 500 Index

adm is what will help feed the people

A potential wheat shortage caused by the spread of stem rust overseas could be very bullish for ADM. Also, it doesn't look like ethanol mandates are going anywhere but up with the current administration, and that will continue to drive up corn prices.

My outperform on this stock is based upon market fundamentals and crop predictions as detailed below:

Various market forces are working together to weaken the US dollar abroad. A weaker dollar
means higher crop prices and higher oil prices (which further drive up the higher crop prices).

Increased overseas demand for crops is allowing companies such as ADM to profit
considerably thanks to price hedges.

My single biggest factor is the weather. Many of the farms in my area (including my own and many of my customers) have been unable to plant significant acreage due to heavy rains. The acreage that did get planted is experiencing uneven
growth and crop loss due to flooding and high moisture content. It is difficult to foresee a scenario where harvests meet projected goals this fall especially given the early expected frost date for 2009. Even a relatively small loss of 2-3%
would likely cause a significant spike in crop prices which would further benefit ADM.

4 All Stars picked this today (06/10/09). The most notable is BullishBabo (rating 99.7, accuracy 83%). This stock is an obvious play on agricultural products in general. I personally think agricultural commodities are poised to rise in upcoming months and/or years due to: (1) continuing worldwide demand growth and (2) likely worldwide inflation. At $28.80, the price is right for this powerhouse company: P/BV=1.4, Forward P/E=9. To quickly understand the company read BigDMan64's pitch submitted on 6/13/08. BigDMan used to work there and he sports a CAPS rating of 99.6

I don't think this stock will do well in an inflationary environment like our country will soon be facing. It is living off subsidies which are in danger of being cut. Debate is going on in Washington about biofuels. This company is responsible for deforestation. Ethanol is not environmentally feasible to fuel our nation and the politicians are starting to realize it. I see far more downside risks.

The main thing that has held this stock back is the ethanol segment. ADM in the medium term is most likely to down size and partially morph out of ethanol at the same time we now see oil prices making another run at $65-70/BBL. We expect higher gasoline over the next 2 operating quarters combined with the US dollar weakening in reaction to unsustainable fiscal policy and poor "TIC" reports becoming chronic. This will benefit the ethanol segment markedly. ADM has already begun a move off it's recent bottoming due to reporting lousy 3rd qtr numbers. Most of this was due to a one time write down. ADM should begin to perform more in line with the AGs in general. DAG, Monsanto,DOW, and Conagra have all been hitting on all cylinders as we hear more rumblings about a basket of commodities based world reserve currency. While there may be no "Amero" coming in the medium term the themes that would back such a thing will benefit. The ADM-PA a 1 year mandatory convertible looks interesting here as well.

Undervalued even though it is off of it's recent lows.

Surely this corn based ethanol rubbish will fade away. It's a net consumer of energy living on subsidies.

standard performer, great balance sheet

As the population of the earth grows the demand for food and food products will increase. ADM is positioned to profit from increased demand