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To: RealMuLan who wrote (26998)	4/6/2005 1:53:04 PM
From: Chispas	Read Replies (1) \| Respond to of 116555

MOTLEY FOOL - Trouble on the Farm? .. .. .. .. .. .. .. .. .. . Tuesday April 5, 3:51 pm ET By W.D. Crotty Has it not seemed almost surreal that rising oil and gasoline prices have not caused a flood of profit shortfalls? Well, out on the farm, the warning sounds are starting to be heard. Among other things, Corn Products (NYSE: CPO - News) makes high fructose corn syrup, which is used in everything from your Coca-Cola (NYSE: KO - News) to your Del Monte (NYSE: DLM - News) canned apricot halves. Today the company is reporting that it is having a difficult first quarter. It's so difficult that it expects a 35% to 40% decline in first-quarter profits. The news has sent the stock down as much as 22.2% today, and the stock is the biggest percentage loser on the NYSE. The company cites three factors for the profit squeeze. First, corn costs were significantly higher, driven by lower co-product (byproduct) values and the timing of corn purchases for contracted business. Look at this CBOT chart for corn, and you can see the sharp drop in corn prices caused by last summer's bumper crop. So companies that contracted early to ensure their corn supply, as Corn Products did, bought at higher prices than today. Problem No. 2 is higher energy and freight costs. You have to look no further than Burlington Northern Santa Fe's (NYSE: BNI - News) recently announced mileage-based fuel surcharge (replacing an assessed percentage of a customer's freight bill) to see transportation companies trying to recover fuel costs more quickly. Oil costs are higher, and they manifest in the form of higher distribution costs. For companies such as Corn Products, which has many supply contracts, the pricing flexibility is not currently available. Finally, the company cited "manufacturing expense problems." While that could cover an oceanfront of issues, it is most likely the packaging cost increases that are plaguing everyone from Motley Fool Income Investor recommendation Sara Lee (NYSE: SLE - News) to Kellogg (NYSE: K - News). From the cellophane wrap (an oil product) to the tin (which includes steel) to make cans to the pulp (where high demand and high energy prices have led to strong pricing) to make cardboard boxes, prices are on the rise. So add it up. It is a one-two-three punch that might put a damper on profits -- and investors are waiting to hear the guidance the company will give when it releases first-quarter results on April 19. The news has put a chill on Archer Daniels Midland's (NYSE: ADM - News) stock, too -- but it's down only 2.5%, and there's some product innovation there that may bolster results. Note - ADM today (Chispas) - ARCHER DANIELS MDLND 21.1416 1:25PM ET Down 2.8584 (11.91%) 8,108,100 Corn Products' news has highlighted the risks that food-based commodity companies face. Prices are rising, and they may not be passed off quickly to consumers, given the degree of competition and relative lack of product differentiation within the industry. Investors should be wary of lackluster results and equally lackluster earnings. ````````````````````````````````````````````````````````` biz.yahoo.com

To: RealMuLan who wrote (26998)	4/6/2005 8:35:52 PM
From: siempre	Read Replies (1) \| Respond to of 116555

The Age of Chinese Multinationals an interesting read at Financial Sense University..... financialsense.com

To: RealMuLan who wrote (26998)	4/9/2005 10:38:31 AM
From: BubbaFred	Respond to of 116555

This is bad news for the West. If current generation is taught and encouraged to save and conserve, the highly productive lean and mean intelligent workforce will perpetuate itself for more decades in the future, to end of this century, and the lazy fat cats of the West will have to compete against the low cost highly productive workforce for an even longer future periods. And talking about English language in China, I heard beautifully spoken English by many of China's young middle schoolers, specially the girls. Don't know why, but the girls can learn spoken English much better than the boys.