December 8, 2008

SpeculatingStocks.com Stock Pick: Archer-Daniels-Midland Company (ADM)

Stock Price: $25.83

Archer-Daniels-Midland Company is one of the largest agricultural processors serving as a link between farmers and consumers. The company takes crops and processes them to make food ingredients, animal feed ingredients, renewable fuels and naturally derived alternatives to industrial chemicals.

ADM could be a big winner under the new Barack Obama Presidential administration. ADM is a major grain processor, meaning they would benefit from further acceptance of ethanol.

ADM is extremely cheap right now trading at a market cap of around $16.5 billion and trailing PE of less than 7. ADM has grown revenues the last three fiscal years from $36.59 billion in 2006 to $44.01 billion in 2007 to $69.81 billion in 2008. ADM generated profits last fiscal year of $1.80 billion.

ADM recently bottomed below $14 and has been in an uptrend since. ADM has been reaching higher highs and higher lows.