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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 Sep 21, 2010 1:15pm
352 Views
Post# 17474620

RE: RE: breakout on adm....

RE: RE: breakout on adm....I think the reason the shares have rallied nicely is because Canaccord put a valuation on it, making it easy for people to take the plunge.

From reading the report that was posted here, it sounds like any further increase in the stock price beyond where they pegged it would be dependent on increasing the resource base (and of course the price of gold). IMO this makes the need to develop an alternative plan beyond heap leaching a blessing in disguise, since they will be set up to handle any metallugical problem from the new deposit (assuming it yields a significant resource), should one arise.

FWIW, based on a mineable resource of about 8 million oz and 130 million shares outstanding, and a CA$2.40 stock price, I come up with a very rough valuation of $40 per ounce in the ground - not great but an improvement. Maybe someone can check that.

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