Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Time To Take Profits On The Andersons

Executive Summary

Investors in diversified agricultural company The Andersons have seen the company's share price increase by more than 90% over the last year. While the company is likely to experience sustained earnings growth over the next year as U.S. grain production rebounds from the lingering effects of the 2012 drought, this expectation is already captured by the company's share price, which has a TTM P/E ratio that is near a 5-year high. Current investors should consider taking profits at this time, as the company's shares are at fair value given its historical TTM P/E ratio and expected earnings over the next six quarters.

The Andersons (NASDAQ:ANDE) is a diversified agricultural company with six different operating groups:...

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