ADM ==> prospects?

[mrmarket]

Though I'm not at liberty to discuss, I think that some fundamental changes in their industry may mean that this stock requires further examination. Anyone care to comment?

[DSteckler]

Why are you not at liberty to discuss?

[IIC]

Though I'm not at liberty to discuss, I think that some fundamental changes in their industry may mean that this stock requires further examination. Anyone care to comment?

Fundamental changes...Like what?

I like MGPI better...Doug(IIC)

[New-born baby]

Fundamental Ethanol

Fundamentally speaking: ethanol. That's what I think he means.

By the way: I think ethanol is a poor choice. Sure, it makes farmers feel better because a higher demand for corn means higher prices for grain farmers. It also means higher food prices for Americans. And ethanol is a crummy fuel. [I am practising my tact. How am I doing?] North of Madison, WI it cannot be used in winter time. Why? Because your car won't start in cold temperatures. Gas milage is only 85% of pure gasoline; power is down about the same percentage or slightly more. Gaskets dry out and crack quicker. If taxes were on the fuel its price would exceed the price of gasoline made from crude! In short, it is not a solution to our energy problems. It is a political solution to appease the farmers and corporations like ADM.

Now back to ADM . . . .
ADM sports a very bullish chart. Both the weekly and daily are very bullish. ADM has been running very strong. But how much gas (pun intended) is left in the tank for ADM? The chart has no target higher left. Until some new development, ADM is just going to stall right here I think. Weekly shows a cup with excellent handle breakout that achieved its target. Again, just waiting for news or for the stock to roll over

[lemonjello]

Peak Oil

It might be useful to look at a long term chart of spot petroleum like $WTIC.

Not a chart expert but looking at a weekly chart it looks like oil did something in 2004 and hasn't looked back. Can any of you chartists project a target?

EtOH may start looking better, along with solar and wind. The new Saudi king just had his first int'l tour and I believe his first stop was Beijing and none in the USA. He doesn't care for the USA putting it mildly. Venezuela? Well. Nigeria? Well. Russia? Ha. But Canada! Expensive and working with the Chinese.

ADM = Exxon of the corn fields?

[jiesen]

Why are you not at liberty to discuss?

I would guess that it's because he works in the energy industry. Anyway, it looks to me like this company could benefit from a shift toward more ethanol use vs gasoline. I'd definitely give it a closer look to see whether it's a good value right now... At first glance, it doesn't appear all that cheap, but it'd definitely depend on what the future prospects are for this sector, and the company.

[New-born baby]

Lemonjello & the Genius

I would guess that it's because he works in the energy industry. Anyway, it looks to me like this company could benefit from a shift toward more ethanol use vs gasoline. I'd definitely give it a closer look to see whether it's a good value right now... At first glance, it doesn't appear all that cheap, but it'd definitely depend on what the future prospects are for this sector, and the company.

Oil target=$80. ADM will certainly benefit from that price run up, if it comes.

[mimo_100]

ADM profit segments

Bioproducts are maybe 15% of their total operating profit -- of which

ethanol is only one part -- see the ADM website for more --

[IIC]

Fundamental changes...Like what?

I like MGPI better...Doug(IIC)

Thx for bringing this up...if it wasn't for this thread I probably wouldn't have found MGPI...Doug(IIC)

[lemonjello]

Tuesday April 11, 1:27 pm ET
Archer Daniels Midland to Market Ethanol Produced at Nebraska Plant Near Jackson

DECATUR, Ill. (AP) -- Agricultural processor Archer Daniels Midland Co. on Tuesday said it entered an agreement with Siouxland Ethanol LLC to market ethanol produced at a Nebraska plant now under construction.

Siouxland Ethanol's facility, located about a mile outside of Jackson, will produce about 50 million gallons of ethanol and consume 18 million bushels of corn annually.

The plant is expected to employ 32 people and should be operational in early 2007. It will also produce about 165,000 tons of distiller grains each year.

Ethanol is alcohol made from plants, usually corn. It is an oxygenate that makes fuel burn cleaner.

There are 12 ethanol plants operating in Nebraska that produce more than 500 million gallons annually. Nebraska is the third-leading ethanol producer in the nation, and about 25 percent of the state's current crop is used to produce the fuel.

Archer Daniels Midland shares were recently up 47 cents to $36.67 in New York Stock Exchange trading.

[IIC]

Thx for bringing this up...if it wasn't for this thread I probably wouldn't have found MGPI...Doug(IIC)

Sold for about a buck profit...thx again

[mrmarket]

ADM is the unquestioned King of ethanol production.

Effective this summer, in most major metropolitan markets, if you run out of ethanol, you run out of gasoline. Watch what happens this summer.

ADM has significantly ratcheted up its political clout in this country. I wouldn't bet against them using this to enhance their market position in ALL of their businesses.

[scifos]

I've been around ethanol plants, they stink pretty bad. Anyways, I heard a few months back that scientists are close to finding a way to make ethanol out of corn stalks, leaves, and husks instead of using the cob. This would be great for everyone because the farmers could sell their corn as food and the rest of the plant as fuel.

[New-born baby]

ADM has significantly ratcheted up its political clout in this country. I wouldn't bet against them using this to enhance their market position in ALL of their businesses.

They sure have. And that's why they are building ethanol plants all over the USA with HUGE tax breaks for garbage fuel--while making our food more expensive. Are there any patriots left in the USA?

[lemonjello]

Peak Ethanol

Can we safely assume that building an EtOH plant requires jumping thru fewer enviromental hoops than building, say, um, a petroleum refinery? Not to mention incentives.

Maybe fewer safety problems, transportation problems? Not sure, just wondering.

Will they be switching former petro pipelines over to EtOH eventually - reversing direction of the pipelines going from the Gulf coast inland?

Will farmers in Iowa start dressing in Bedoin robes and riding around their corn fields in huge ethanol consuming Mercedes limos? OPEC -> OEEC.

Big for Brazil also.