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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (15252)	7/6/2002 11:33:31 AM
From: Mark Adams	Read Replies (1) \| Respond to of 36161

Looking at ML research, it looks like a 10 PE is fair for the sector. So BG would look a bit pricey to me, given the political risk in latin america at the moment. I haven't looked in depth at the company though. Don't know where their sales/production are based, nor what their balance sheet looks like. I'm still exposed to Brazil through a couple of ADRs. I didn't heed the warning issued some weeks ago about the potential changes afoot. From Forbes; Commodities giant Bunge ($11.5 billion in 2001 sales) traces its roots back to Amsterdam in 1818, but it lacks larger rival Archer Daniels Midland's ($20 billion) prominence. U.S.-based Bunge (nyse: BG - news - people ) only went public in 2001 and focuses on unsexy sectors like soybeans and fertilizer. Last year Bunge posted 19% sales growth and a tenfold rise in net income, to $134 million, despite devaluations in Brazil and Argentina, where it does a lot of business. Global demand rose for soybeans, wheat and corn. Steven Lehman, who manages Federated Investors' Market Opportunity Fund, likes Bunge's cheap 10 P/E, versus ADM's 20. -Daniel Kruger forbes.com