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

To: Spekulatius who wrote (2106)	8/1/2012 1:48:26 PM
From: Sergio H	Read Replies (1) \| Respond to of 4719

ADM - I agree that this is a well run co. and that its likely to remain in business for a long time. The negatives that I see are: Its a low profit margin business with a high degree of volatility due to uncontrollable conditions. Co. lacks pricing power over its products. It does not have the ability to pass on costs to the consumer. The "grain terminals, storage and crushing facilities etc. which most likely cost more than book value to replace" cannot be monetized or there is no foreseeable plan for these assets to be monetized. I like ROC better. They are not a competitor of ADM's but like ADM they mostly take stuff out of the ground and make a market out of it. ROC received less votes than ADM. How about if we compare the two and toss one out? It's time to narrow down the picks.