Hey Michelle Obama: You could be proud of these two American stocks


While Michelle Obama's rather outlandish comment hasn't gotten a lot of mainstream media play, I would like to present two American stocks that even she would be proud of.

Michelle Obama said, "for the first time in my adult lifetime, I am really proud of my country." Now Michelle hasn't exactly led a life of your typical third world citizen. She graduated from Princeton University and Harvard Law School. While America may not be perfect, it is by far and away the greatest nation on earth. If she was so anti-U.S. for the last 25 years, why did she bother staying? The fact that millions of people are trying to enter the U.S. every year means something. You don't see people crowding into boats to be smuggled into Cuba (enjoy your retirement, Fidel).

I will not go into all the things that we can be proud of as Americans that have occurred over the last 25 years. What I will do is present two great U.S. companies that will make you proud. They have not only created products that have been an enormous help to people around the world, but also make for potentially intriguing investments.

Amgen (NASDAQ: AMGN), the bio-tech giant, has spent the last few decades (basically the same amount of time as Michelle's adult life) trying to help sick people. That seems to me to be a noble pursuit. It uses cellular biology and medicinal chemistry to target cancer, nephrology, inflammatory disorders, and metabolic and neurodegenerative diseases. Anti-anemia drugs Epogen and Aranesp account for about half of its sales. Enbrel, another leading drug, treats rheumatoid arthritis and is one of the best-selling drugs in this multi-billion-dollar market.

The stock has gotten crushed of late, down 30% from its 52-week high. Trading with a P/E under 11, the stock has become an interesting value play. With a large pipeline, investors may want to take a look at Amgen.

Archer Daniels Midland (NYSE: ADM) is one of the world's largest food processors. It is one of the world's largest processors of oilseeds, corn and wheat. Its main offerings include soybean, peanut and other oilseed products. From corn it produces syrups, sweeteners, citric and lactic acids and ethanol, among other items. ADM also produces wheat and durum flour for bakeries and pasta makers. It processes cocoa beans. Basically, it helps feed the world. Trying to take on world hunger isn't such a bad thing, is it?

With the world becoming wealthier and consumers having more disposable income than ever before, they have more to spend of food. ADM should continue to profit from this trend, not to mention its profits from the ethanol craze. The stock has done well, but long-term investors may want to take a look as catalysts for the stock continue, and the stock doesn't appear overvalued.

Michelle, I think there is a lot to be proud of. God Bless the U.S.A.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no position in any stock mentioned as of 2/19/08.

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Last updated: February 13, 2012: 04:52 PM

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