With ethanol margins improving in the second quarter and investors
increasingly transitioning from the old (poor) crop to the new (good)
crop, Archer Daniels Midland (NYSE:ADM)
has caught investor attention again, and the stock is both near a
52-week high and up almost 50% over the past year. I do believe that the
2013 U.S. crop harvest will be good for ADM's 2014 handling, milling,
and crushing operations, and I do believe ethanol is here to stay. That
said, this is still fundamentally a volatile low-margin business and
even with the opportunities added with GrainCorp, I would be careful
about chasing the shares.
Please follow this link for more:
http://www.investopedia.com/stock-analysis/080713/adm-offsetting-weak-volume-strong-ethanol-adm-bg-ignr-vlo.aspx
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