The Rising Influence of Rising Affluence

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$ADM Archer Daniels Midland Is A Cheap Stock

https://seekingalpha.com/article/4136769-archer-daniels-midland-cheap-stock?sht=p2f2qk&shu=448cd#comment-77344270

Summary
ADM had a bad 2017.

Processing spreads have weighed on earnings.

Demographics support an agricultural boom.

Limited downside in an expensive stock market - think oil refining during the down years.

ADM should rebound in 2018.

At the end of 2016, Archer Daniels Midland (ADM) was trading at $45.65 per share. The DJIA average moved over 5,000 points or better than 25% higher in 2017. Meanwhile, ADM closed the year that ended two weeks ago at $40.08 per share. Not only did ADM underperform the market, but it was also a true dog of the Dow in 2017.

ADM is the supermarket to the world, and it procures, transports, stores, processes, and merchandises agricultural commodities and products. When it comes to food, the company is at the heart of the U.S. agricultural business. However, the $22.32 billion company did not participate in the great stock market rally of 2017 as declining margins and low prices weighed on earnings.

While the grain sector rebounded by 6% in 2017, soft commodities price fell by over 12% on the year. Additionally, the margins for processing those commodities that come from the fertile soils of the United States and around the world fell to levels where refining corn into ethanol, soybeans into oil and meal, and other processing activities suffered under the weight of lower product prices compared to their commodity inputs.

ADM had a bad 2017
Archer Daniels Midland did not participate in the stock market rally, and the shares of the company have been under pressure since December 2014.

CHART>>>
http://stockcharts.com/h-sc/ui?s=ADM&p=D&yr=5&mn=0&dy=0&id=p11613157558