Corn Products International (NYSE: CPO) manufactures
and markets food ingredients and industrial products derived from corn and other starch-based materials. Major offerings include sweeteners, corn oil, salad dressings, shortening, vitamins, corn gluten feed, food-grade starches and industrial starches. The firm operates manufacturing plants in the Americas, Africa and Asia, serving customers in the food, beverage, pharmaceutical, paper, textile, and brewing industries. Archer Daniels Midland (NYSE: ADM) is a major competitor.
Investors were pleased last week, when the company reported fiscal Q1 EPS of 85 cents and revenues of $930.9 million. Analysts had been looking for 71 cents and $867.9 million. Net sales set a record, for the ninth consecutive quarter. The firm also guided FY08 EPS to $2.90-$3.10 ($2.87 consensus) and FY08 revenues to $4.0 billion ($3.78 billion consensus).
The CPO share
price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the shares with two "strong buys", three "buys" and two "holds". The CPO P/E ratio (16.78), Price to Sales ratio (0.95), Price to Book ratio (1.92), Price to Cash Flow ratio (9.90), Sales Growth rate (22.18%) and EPS Growth rate (28.79%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 86% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $31.42 and $49.30. A stop-loss of $40.25 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.
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Reader Comments (Page 1 of 1)
5-11-2008 @ 7:45AM
linda Jimenez said...
here is an article from Buenos Aires where it details the manner which CPO subsidiary in Argentina handles its affairs, by the use of bribes, illegal dumping and staffers who create biased "lawsuits" which benefit the defendant when the attorney is in a nefarious relationship with CPO attorneys whom receive more than 50% of funds paid to "defendants"... time to take control of Raul Bazan, director of CPO "Productos Maiz" in Argentina. Please investigate as Greenpeace takes charge of the environmental issues which destroy the 100 yrs image of CPO
5-19-2008 @ 4:26AM
linda Jimenez said...
please send comments to:
stopcorporategreed@live.com
please send notice that CPO is a greedy and selfseving company in the vain the UNITED FRUIT COMPANY of 1950`s which brought about many revolutions in central and south America! We need your help in Argentina!
LJ