Corn Products International, Inc. (CPO)

This account tracks the performance of newly minted 4 star stocks - 3 star stocks that recently turned in to 4 star stocks.

This is one of my favorite types of companies in which to invest; those that supply other companies. The balance sheet isn't too bad in the current economy and the list of products they make and the list of companies they supply is very strong. And, I have a soft spot for a strong dividend payer.

Unusually High Call Volume at $25 & $30 for 2/09.

Corn Products remained highly profitable during a bad market and bad economy. Their dividends also kept right on coming...after all, people still gotta eat. Now, add to this the fact that corn prices have plummeted with all commodities recently. This should greatly increase CPO's profit margin. Look out in 09......this stock shoul double.

undervalued

Hmm...This looks very cheap. Good cash flows...supposed to be bought out, but I'm thinking that doesn't go through given the price of the parent stock.

Double bottom ?

Corn is for green energy

The need for food and alternative energy

Arbitrage, eh? Looks like the upside here is about 10%, and this thing could fall the 17% it gained today if the deal gets nixed. At this price and with as little information as I have right now, I wouldn't enter with real money yet, but I don't see too strong of an opposing force that could stop the deal. Then again, I know almost nothing about agriculture stocks or Bunge/CornProduct shareholder sentiment and the likelihood of this merger going through.

I posted some questions about this deal on my blog. Maybe someone will contribute a good analysis?

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=64367&t=01008107200910675910

The Company is a corn refiners and a supplier of high-quality food ingredients and industrial products derived from wet milling and processing of corn and other starch-based materials.

Might not be the most obvious stock choice right now given corn prices, but their way of hedging is paying off right now. When other corn-related companies are going to get crushed by supply problems, CPO is going to have financial resources that they can put to strategic use.

This stock was nuked by the Iowa floods and prospects of inflated grain prices. Ironically, while it took the same beating that ADM and other players took over this news, CPO hedged corn prices and should suffer relatively little damage to profit margins. Meantime, people gotta eat, even during a recesion. I expect strong results next quarter.

I'll drop this in November, but watch corn prices explode. Demand is high, and weather is already wreaking havoc on the Midwest farmers

With the floods in the midwest, short term no deal. With Barack in the white house!! No deal. Corn ethanol is no deal either in the coming years.

Anybody been shopping lately? Not rocket science here.

supercycle

This stock will soon outperform all oil and fuel stocks. While fuel is getting expensive, new ways of running automobiles are getting more and more common. The most common may be corn. This stock will sky rocket in the next few years once we learn how to run vehicles on it. The only thing is i believe we might have a shortage of corn due to all of these companies using it as fuel. It is time for some agriculture to step back in and help produce.

frucrose an eaters best friend.