Investment is as much about research as it is about luck. If you want to make the best decisions when buying a stock it is important to research the company that you are interested in. You should know what the company does, you should know who their competitors are, and you should know how successful the company is in their chosen market. With these pieces of information you will be in a better position to judge a stock’s growth potential.
Free Basic Stock Performance Review: Archer-Faniels-Midland Co. (ADM)
4666 Faries Parkway
PO Box 1470
Decatur, Illinois 62525
(217) 424-5200 phone number
(217) 424-5447 fax number
What Archer-Daniels-Midland Co. (ADM) Does
ADM is an agricultural commodities and products company. They participate in the growing, harvesting, transporting, storing, processing, and merchandising of all of their agricultural products. They have three main areas of expertise including Corn Processing, Oilseed Processing, and Miscellaneous Agricultural Services. They are a leader in their industries, and they harbor a large market share of agricultural business initiated in the U.S.
52 Week Performance
During the 52 week period ending 08/25/06 the value of ADM fluctuated between 21.60 and 46.71. On 08/25/06 the value of ADM hovered around 41.50. ADM has had a a very good year so far increasing in value from about $25 per share to its August high value of 46.71. This growth trend is expected to continue, and the stock is expected to reach at least 44.44 with a year.
Historical Performance – The Last Five Years
During the last five years ADM has experienced an overall growth trend. There have been a few minor dips, however, these dips have been offset by stronger increases. Between 2002 and 2003 the value of ADM decreased slightly in value, however, from 2003 to 2004 the growth trend took off raising the value of ADM from about $12 per share to about $16 per share. Then ADM grew from $16 per share to $22 per share in 2005. From 2005 to 2006 the stock continued to increase in value going from $22 per share to about $26 per share. The growth rate increased in 2006, with the price exceeding $40 per share.
Strengths of ADM
ADM is a strong stock with an excellent track record. It is a mature stock, which pays a dividend of .40 per share. It is one of the top performers in its industry, and it produces over a billion dollars of net income each year. This company also has the potential to expand into the ethanol market, which increases its future potential worth as an investment. ADM’s strength is also increased by the sheer demand for corn and vegetable oil products. These products are used not only by consumers, but by several food manufacturers and beverage manufacturers.
Weaknesses of ADM
ADM doesn’t have a lot of weaknesses. However, as an agricultural company it is vulnerable to weather and climate changes, transportation cost increases, as well as market taste fluctuations. However, since corn and vegetable oil products are in high demand around the world, and because these products are used in many industries, ADM is not as vulnerable as other food companies.
For More Information
If you would like more information about this stock please post your requests below. Also if you would like a free basic stock performance review on another stock you can post those requests below as well. Updated information and requested material will be posted as they become available.