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

To: Spekulatius who wrote (43717)	8/11/2011 11:33:05 AM
From: E_K_S	Respond to of 78650

Archer Daniels Midland (ADM) By: Zacks Equity Research August 11, 2011 zacks.com From the article:"...We recently downgraded our recommendation on Archer Daniels Midland (ADM - Analyst Report) to Underperform following a lower-than- expected fourth-quarter 2011 results. ADM's quarterly earnings of $0.58 per share missed the Zacks Consensus Estimate of $0.84 and dropped almost 16% from the prior-year quarter, primarily due to a higher income tax rate. Although, ADM is expanding its global footprint into key agriculture regions through acquisitions and joint ventures, the resourcing of commodities and stringent external finance may pose a threat to its operating performance. Moreover, intense competition and adverse currency fluctuations may undermine the company's long-term initiatives and dampen the financials of the company. Our long-term Underperform recommendation on the stock indicates that it would perform below the broader market. Our target price of $25.00, 7.8x 2012 EPS, reflects this view...." --------------------------------------------------------------------- It seems to me this is exactly what they should be doing especially when the FED has announced they plan to keep interest rates at 0 for the next 24 months. Their financing alternatives could not be any better in the cycle. With a Forward PE of 7 and a pretty conservative debt profile (Annual Net Income/LT Debt <5), I see this as a good value opportunity at current prices. Upped my small tracking position by 100% and put this one into my AG basket. Will double my holding if this one sells below $25 as the article suggests. EKS