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

To: Spekulatius who wrote (42935)	6/6/2011 12:12:29 PM
From: E_K_S	Read Replies (1) \| Respond to of 78741

Yes ADM is on my watch list but they have too much exposure in Fructose (corn syrup) production (especially in the US). Maybe they can get China hooked on that stuff which would significantly add to their bottom line. I believe their new West coast port facility was built to handle grain exports (not necessarily processed corn products). You need to look at the management at ADM again as they have recently had a complete turnover in top management w/i the last six months. This could be a good thing. Listen to the ADM presentation as it provides a good current state-of-affairs at the company. Audio webcast of the company's presentation at this year's BMO Capital Markets Farm to Market Conference held in New York. audability.com Value wise, ADM is in value territory (w/ a PE around 9) so I have a GTC order in for a tracking position at $25.45/share. My add to my BG order is in low too at $66.60/share. I think AGU is the best company of the group but it is still priced too high and I am looking for an entry around $70.00/share. Their 2012 earnings estimate by 21 analysts is $7.84/share. A 9 PE represents a pretty good value price entry point for any of these larger players. ADM is now selling right around this number so perhaps with their recent management shuffle it may provide a low risk entry point. I still think it will take several quarters for the company to implement their new growth strategy. The other companies seem to have it working now. If the market turns sour, many of these global AG conglomerates should be well positioned to make money in a stagflation (and/or inflationary) environment. EKS