legmaker

ADM Earnings Are a Shareholder's Dream

I think this is a great call Todd. I still think we are in the midst of a commodity based bull run, although right now commodities along with everything else is taking a breather. I know someone is going to call me on this, but its the same reason that people are buying gold. We are throwing money at our current problems, when throwing money at problems in the past got us where we are today. I am not saying it is the wrong idea, but the only thing we can do right now as deflation is very difficult to stop, but inflation is much easier. The way we are going now, I believe that we are going to see inflation comparable to that of the Reagan (Bless his soul) years.
If corn prices remain low, it will improve ADM's margins. If the prices increase, they will make corresponding price increases. Ethanol is also a very interesting part of the equation. Ethanol prices have plummeted because gasoline demand has decreased. The less gasoline we use, the less ethanol is used as an additive. E85 is a very small portion of the picture as many places still don't sell it and it can be tough to find depending on where you live.
The one thing people are not talking about is there current deal with LNDC. ADM making a biodegradable plastic wrap. This wrap is being implemented into grocery stores to wrap things like hamburger and vegetables. This may not be a big revenue source now, but when petroleum prices go up, and they will at some point, this will be big. I think ADM is a buy here, especially if you got in towards the end of the trading day. If that is the case then you will probably get a pop in the morning. ADM could still see $20, if it does pull the trigger. Great job and God Bless.