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

To: Spekulatius who wrote (43827)	8/10/2011 10:42:16 AM
From: E_K_S	Read Replies (2) \| Respond to of 78476

Building the AG basket Archer-Daniels-Midland Company(NYSE: ADM) Bunge Limited Bunge Limited(NYSE: BG) Omega Protein Corporation Commo(NYSE: OME) finance.yahoo.com I am trying to identify the companies that will lead us out of this recession. Generally it is always a different group based on a different theme. I am speculating that the next group will be those companies that provide products and services that produces and deliver AG products globally. The key is to find these companies at a "value" price (PE below 10) that provide a significant value added service or product which increases the efficiency (and/or sustainability) of this limited resource (food). All of the companies listed above sell at a PE of 9 or less, do not carry too much LT debt when compared to their annual net income and provide a product or service to the AG sector. I am still adding new names to my AG basket as I discover them but many of them do not have the "Value" characteristics that I require (like low LT debt). One thing I am focused on are finding those companies that drop in price on low volume on big sell off days and participate in the bounce back rallies with larger than normal % up moves on heavy volume. OME was up 22.5% yesterday on the 429 point up move on the DOW. The stock touched it's 200 day MA (briefly) but is still near it's 52wk high. Several of the AG producing companies/divisions have operations in South America. Brazil, because of their huge commodity exposure is down over 35% YTD and could present a buying opportunity in this next cycle. Therefore, I have been focused on those AG companies that have some exposure to Brazil and/or are establishing new operations in Brazil as I believe the current prices represent a good value entry point EKS