Always good to buy a good stock when it stumbles as it is very likely to recover and go even higher in time. Having said that adm has not yet stumbled its only some analyst, "who thinks he knows". lol. The analysts have got it wrong about adm earnings before, and even if he is right it does not change the long term picture. If this analyst is right and adm corrects further down on earnings report its a buy opportunity again. lol. adm earnings are still going to outperform most of the market, even if it does not meet former expectations. jmho.
6 months or a year from now people like Mr. Warren Buffett are going to wish they bought adm and not insurance companies. Likely many companies report disapointing earnings over the next 6 months and even losses. On a relative basis adm should outperform on earnings.
Well thought this would be back up at least 5% today. Still surprised on how much of a sell off on one analyst downgrade. Very sensetive investors these days, just like the general market i guess. Still expect adm to outperform the market next earnings, but it could miss on expected earnings and still outperform the market. Still my favorite pick for a long term holding. If the stock stays low for long enough some big investors might just make an attempt to take it private, like cargil. I sure like adm over insurance, banks, industrial sectors for the mid term as well.
Remember I was shorting this at 29? Well I went long yesterday and sold the May 25 puts for 1.55. The tape didn't look good today but hopefully it will hold the support levels at 25 and if not 25 then at least 24.
If a report comes out that the world population is no longer expected to grow or that it has gone into decline i would consider this is a sell. Other than that these sort of "speed bumps" are just buy opportunities. lol. adm beat analyst earnings forecasts last two times if i remember correctly. Regardless of next earnings report long term a good stock in the right sector. No way the ag sector is going into decline over the longer term. Short term who knows, but long term this is a nice buy opportunity. jmho I am going to go look at bg now and see if its also giving a good price today. lol.
What if I told you that the emerging middle class quality of life improvement has stalled due to the global economic meltdown and they will stay impoverished longer. Would that cause supply to outnumber demand.