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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (16469)	2/19/2003 4:34:43 PM
From: Broken_Clock	Respond to of 78505

Thanks Paul. I agree with you on a cyclical return to lower PE's. Although they may have to overshoot even lower in order to get a dividend going. I mean, why buy if you don't think the stock is ever going to rise? Only other reason to buy is too get a divie or manufacture one by selling calls.

To: Paul Senior who wrote (16469)	2/21/2003 11:24:12 PM
From: Joan Osland Graffius	Respond to of 78505

Paul, I have owned ADM forever and have a core position - this position is tax free distributions. This is a family thing as my father did business with the boys that started ADM during the years they were located in Minneapolis. I agree with your take on lower P/E levels. When ADM gets sold off in the $9's or lower I have bought and sold when the position gets over priced. We had an opportunity to buy in the 8's a few years ago and I bought some and sold it last year in the high 14's. There is better return in the ADM investment than meets the eye. When the stock is cheap the company buys back their stock and does a tax free stock distribution over and above the dividend to stock holders.