Archer Daniels: Emerging Markets Food Play

Archer Daniels Midland's ADM stock, first discussed here on March 25, 2009, at a price of $28.78, has pulled back slightly after testing the $35 level, but the outlook remains good for additional gains. Archer should record a 3% to 5% revenue increase in FY2011, as global demand for food continues to rise. Further, long-term, the company remains well-positioned to capitalize on the development of emerging markets, and population growth. Oilseed performance will be a star performer, followed by agricultural services. Also, ADM's economies of scale, new plants, cargo expansion, and improved cost controls add to the positive story. A 60-cent annual dividend provides a modicum of safety. Continue reading the article.