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Archer-Daniels-Midland Co V.ADM


Primary Symbol: ADM

Archer-Daniels-Midland Company is a human and animal nutrition company. The Company is an agricultural supply chain manager and processor. It operates through three business segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds such as soybeans and soft seeds into vegetable oils and protein meals. The Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. The Nutrition segment is engaged in the manufacturing, sale, and distribution of a range of ingredients and solutions, including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, enzymes, botanical extracts, and other specialty food and feed ingredients.


NYSE:ADM - Post by User

Comment by rofion Jul 26, 2010 7:19pm
476 Views
Post# 17298220

RE: RE: RE: RE: RE: RE: Why So Underpriced?

RE: RE: RE: RE: RE: RE: Why So Underpriced?What worries me at this point is that even as they try to rejigger their mining plan to achieve an acceptable ROI, their resource profile is subject to change radically, both in quantity and grade. As I read it, their land purchase from Barrick was bigger than the current land package at the time of purchase. I'm not a geologist or a mining exec, but common sense would indicate that the development of a PEA and subsequent mining plan requires an overall understanding of the resource base. How is this possible given that so little work has been done in the new parcel?

Don't get me wrong - more resource is better than less resource, and higher grades are better than  lower grades, but I get the sense that management's need to right the ship ASAP is in conflict with the logical order for events to play out and the timeframe required for it to happen.

Would love for my assumptions to be proven wrong on this.
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