The first quarter of 2010 is closed and the results are in. My picks surpassed the primary indices by a large margin. The original story, Chasing Value: 10 Stock Picks for 2010 , was the culmination of a process presented to our readers and finally narrowed down to the select group using final prices from Monday, December 28, 2009.

Continue reading Chasing Value: 2010 Picks Triple Market Returns

Chasing Value: 2010 Picks Triple Market Returns originally appeared on BloggingStocks on Mon, 05 Apr 2010 10:00:00 EST. Please see our terms for use of feeds.

During my tenure at BloggingStocks I have expressed my opinion often about the contribution that dividends make to your overall return. Most shrewd investors, and especially "my pal Warren," know this and understand why I re-emphasize the point when I make my annual selections.

By now I hope you have had a chance to peruse my picks for 2010. If not the links below will give you another opportunity.

Continue reading Chasing Value: 2010 Dividends for Ten Stock Picks

Chasing Value: 2010 Dividends for Ten Stock Picks originally appeared on BloggingStocks on Thu, 31 Dec 2009 16:30:00 EST. Please see our terms for use of feeds.

How hungry are you? The world is becoming hungrier all the time and Archer-Daniels-Midland (ADM) seeks to fill that need.

It is one of the world's largest processors of oilseeds, corn, and wheat. It turns corn into syrups, sweeteners, citric and lactic acids, and ethanol to fill your tank too. ADM also produces wheat flour for bakeries and pasta makers; cocoa and chocolate products for confectioners; animal-feed ingredients for farmers, and malt for brewers. It operates one of the world's largest crop origination and transportation networks, through which it connects crops and their markets across the globe.

Continue reading Chasing Value: 2010 -- #7 Archer Daniels Midland

Chasing Value: 2010 -- #7 Archer Daniels Midland originally appeared on BloggingStocks on Wed, 30 Dec 2009 17:00:00 EST. Please see our terms for use of feeds.

The 5 data points were price-to-sales (P/S), price-to-book (P/B), price-to-cash flow (P/CF), dividend yield and return-on-equity (ROE). I did look at other things but these were the subject of my initial focus.

Continue reading Chasing Value: 10 Stock Picks for 2010

Chasing Value: 10 Stock Picks for 2010 originally appeared on BloggingStocks on Tue, 29 Dec 2009 16:40:00 EST. Please see our terms for use of feeds.

Agricultural issue Archer Daniels Midland Company (NYSE: ADM) is sharply lower in today's trading after falling short of Wall Street's earnings expectations. The company confessed to a 98% slide in third-quarter net income, thanks to hefty investment losses and a weak pricing environment.

ADM reported a profit of $8 million, or 1 penny per share, compared to its year-ago results of $517 million, or 80 cents per share. Investment losses for the period totaled 36 cents per share. Revenue for the quarter tumbled 21% to $14.8 billion, impacted by strength in the U.S. dollar and softer commodity prices. As a result, gross margin contracted from 6.2% to 4.4%.

Continue reading Quarterly profit plummets 98% at Archer Daniels Midland

Quarterly profit plummets 98% at Archer Daniels Midland originally appeared on BloggingStocks on Tue, 05 May 2009 11:10:00 EST. Please see our terms for use of feeds.

Continue reading The ADM train is leaving the station

The ADM train is leaving the station originally appeared on BloggingStocks on Wed, 25 Mar 2009 17:20:00 EST. Please see our terms for use of feeds.

"If you're going to stay invested, you should look to defensive sectors," explain Ron Rowland and Brandon Clay, who point to consumer staples as a top pick for the current market environment.

In their Invest with an Edge, the advisors explain, "Perhaps the best way to stay defensive is with the Consumer Staples Select Sector SPDR (NYSE: XLP), an exchange traded fund.

"In a bear market, opportunities are usually limited to certain sectors. Surveying the investment horizon, we think the consumer staples sector has the best opportunity for growth in this economy.

"Regardless how the economy acts, people still eat. Consumers may not shop at Whole Foods, but they'll still buy groceries. Companies like Wal-Mart (NYSE: WMT) and Safeway (NYSE: SWY) will continue to rake in revenues from hungry customers.

"In addition, these companies should continue to receive additional revenue from consumers who normally shop at specialty stores, but can no longer afford to.

"Consumers may not be shopping at Sharper Image any more, but there are other creature comforts that will be difficult for Americans to abandon.

"Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) will still sell products during a prolonged downturn. In addition, companies providing toiletries and convenience like Procter and Gamble and CVS Pharmacy stand to do well during a shifty economy.

Continue reading Stay defensive: Invest in consumer staples

Stay defensive: Invest in consumer staples originally appeared on BloggingStocks on Wed, 26 Nov 2008 13:05:00 EST. Please see our terms for use of feeds.

Anglogold (NYSE: AU) closed at $27.47 Thursday. Gold is recently down 3.11% to $789.20 according to Bloomberg. AU September option implied volatility of 51 is above its 26-week average of 43 according to Track Data, suggesting larger movement.

Valero Energy (NYSE: VLO) closed at $33.93 Thursday. Crude oil futures are recently down 1.64% to $113.37. VLO September option implied volatility of 53 is above its 26-week average of 47 according to Track Data, suggesting larger price movement.

Southern Peru Copper (NYSE: PCU) closed at $24 Thursday. Copper is recently down 3.80% to 326 according to Bloomberg. PCU September option implied volatility of 53 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Archer Daniels (NYSE: ADM) closed at $26.62 Thursday. Corn futures are recently down 3.38% to 557.75, Soybean futures are down 2.59% to 1241 according to Track Data. ADM September option implied volatility of 44 is above its 26-week average of 40 according to Track Data, suggesting slightly larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Volatility for stocks with exposure to lower commodity prices originally appeared on BloggingStocks on Fri, 15 Aug 2008 09:09:00 EST. Please see our terms for use of feeds.

Continue reading Some agricultural stocks to consider from BusinessWeek

Some agricultural stocks to consider from BusinessWeek originally appeared on BloggingStocks on Fri, 20 Jun 2008 15:17:00 EST. Please see our terms for use of feeds.

Archer-Daniels Midland (ADM) rises on higher energy prices originally appeared on BloggingStocks on Thu, 28 Feb 2008 12:37:00 EST. Please see our terms for use of feeds.

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.

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

Hey Michelle Obama: You could be proud of these two American stocks originally appeared on BloggingStocks on Tue, 19 Feb 2008 13:11:00 EST. Please see our terms for use of feeds.

Continue reading Archer Daniels (ADM) second-quarter profit rises on strong demand

Archer Daniels (ADM) second-quarter profit rises on strong demand originally appeared on BloggingStocks on Mon, 04 Feb 2008 10:40:00 EST. Please see our terms for use of feeds.

For a bullish hedged play on this stock, I would consider a June bull-put credit spread below the $35 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in just 6 months as long as ADM is above $35 at June expiration. ADM would have to fall by more than 15% before we would start to lose money. Learn more about this type of trade here.

Continue reading Archer Daniels Midland (ADM) hits new high on rising energy prices

Archer Daniels Midland (ADM) hits new high on rising energy prices originally appeared on BloggingStocks on Wed, 26 Dec 2007 13:15:00 EST. Please see our terms for use of feeds.

For Archer Daniels it's food first, energy second originally appeared on BloggingStocks on Wed, 31 Oct 2007 18:05:00 EST. Please see our terms for use of feeds.

Regarding the "agricultural boom," Kevin Kerr notes, "Green Acres is still the place to be." Here, the editor of MarketWatch Global Resources looks at Archer Daniels Midland (NYSE: ADM).

Kerr explains, "Our portfolio has already seen some big gains from the agriculture, and we are getting ready to position ourselves for even more gains. How long will the boom last? The honest, albeit unsatisfying, answer is that nobody knows."

The advisor continues, "Growing interest is a good indicator that the grain markets have a good bit of wind at their back. Indicators suggest that we are seeing good momentum in the grain market investment vehicles and likely will for many years to come.

"Meanwhile, there are some key differences about the agricultural trading boom as compared to say the high tech stock frenzy. After all, food, unlike high tech stocks, is not only high in demand; it still remains way undervalued even at current record levels."

Continue reading Archer Daniels (ADM): MarketWatch advisors look to 'Green Acres'

Archer Daniels (ADM): MarketWatch advisors look to 'Green Acres' originally appeared on BloggingStocks on Tue, 16 Oct 2007 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Archer-Daniels-Midland Q4 earnings preview

Archer-Daniels-Midland Q4 earnings preview originally appeared on BloggingStocks on Fri, 27 Jul 2007 17:40:00 EST. Please see our terms for use of feeds.

Let me introduce my Yankee Doodle Dandy portfolio, a compilation of red, white and blue stocks for investors to consider as they celebrate our nation's independence.

Regardless of your views on the Iraq war, there's no denying that defense stocks including Lockheed Martin Corp. (NYSE: LMT), Northrop Grumman Co. (NYSE: NOC), Raytheon Co. (NYSE: RTN) and General Dynamics Corp. (NYSE: GD) are reasonably valued. This is especially noteworthy considering that defense spending will need to be maintained at pretty high levels for years to come in order to replace equipment that's been worn out from combat. President Bush is proposing to spend a record $439 billion in fiscal 2007 on defense and another $42.7 billion on homeland security.

Lockheed, the maker of the F-16, seems especially cheap, trading at a forward multiple of 14.6. Its shares have only gained 4.6% this year even though the company reported better-than-expected first-quarter results and raised earnings guidance. Missile and defense electronics company Raytheon, up less than 3%, is in the same situation.

Investors often overlook the huge businesses that Lockheed and Raytheon have in areas outside of defense, including computer systems and air-traffic control. The managements of both companies also have vastly improved over the past few years. Northrop and General Dynamics have always been pretty well run.

Boeing Co. (NYSE:BA), notably the second-largest defense contractor, also looks worth snapping up. Its stock is up less than 3% this year, which is surprising considering how well it's rebounded against European rival Airbus. The company trades at a forward multiple of 17.7.

Continue reading My Yankee Doodle Dandy portfolio

My Yankee Doodle Dandy portfolio originally appeared on BloggingStocks on Wed, 04 Jul 2007 07:15:00 EST. Please see our terms for use of feeds.

At last, U.S. investors who want a piece of the ethanol game may have a pure play that's solidly profitable. South America's largest ethanol company, Cosan, filed Monday to raise $2 billion through the United States financial markets. According to Dow Jones, Cosan will use about $650 million in IPO proceeds for a new ethanol plant. $500 million to expand existing sugar and ethanol plants, and $325 million to build plants to generate electricity from left over sugar cane.

Cosan reported net income of $346.5 million in fiscal year 2007, and its size and strength have led to speculation that Archer Daniels Midland (NYSE: ADM) may make a run at buying the company. The plans for an IPO make that seem less likely however.

Cosan may have missed the speculative ethanol bull market of last year that sent companies like Pacific Ethanol (NASDAQ: PEIX) into the stratosphere, but the fact that Cosan actually makes money -- and lots of it -- gives it the making of a potentially very successful IPO.

Cosan's sugar-based ethanol is probably more efficient than the corn-based ethanol that is being produced in the United States, but huge government tariffs and farm subsidies will put the company at a disadvantage in the United States for now. But if gas prices continue to soar and pressue mounts in Washington to remove the tarrifs, Cosan would probably become a major player in the ethanol market here. If that happens, investors who scoop up Cosan at the IPO will be richly rewarded.

South America's largest ethanol player, Cosan, to list on NYSE originally appeared on BloggingStocks on Tue, 26 Jun 2007 01:05:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Kohlberg Kravis Roberts & Co. is planning an initial public offering, following in the footsteps of arch rival Blackstone Group (NYSE: BX), reported the Wall Street Journal (subscription required).
  
• Archer-Daniel-Midland Company (NYSE: ADM) is expected to enter the sugar cane ethanol business in Brazil, including the possible purchase of Cosan, Brazil's largest ethanol producer, reported the Wall Street Journal.

• British energy company BP plc (NYSE: BP) will agree to the demands of the Russian government to give up its stake in the $20B Kovykta gas project, reported the U.K. Times.
• From BusinessWeek's "Inside Wall Street" column:
• Bulls and bears argue over where it is time to own Deere and Company (NYSE: DE) stock, some see the stock hitting $150, some believe the party is over.
• Document Security Systems Inc (NYSE: DMC) has nine patented technologies to help protect documents and printed products from brand and security fakers, leading Brookhaven Capital Management to believe it will reach $50-a-share over the next two years.
• WBB Securities believes Cleveland BioLabs Inc (NASDAQ: CBLI) is likely by summer's end to get a U.S. Department of Defense contract for its radiation protection compound called Protectan or CBLB502.

• CNN.com reported that a 16-year-old girl had both of her feet severed in an accident on the free-fall ride "Superman Tower of Power" at Six Flags Inc's (NYSE: SIX) Kentucky Kingdom amusement park yesterday.

Newspaper wrap-up 6-22-07: KKR to follow Blackstone public originally appeared on BloggingStocks on Fri, 22 Jun 2007 09:15:00 EST. Please see our terms for use of feeds.

Continue reading Ethanol does not equal higher corn prices

Ethanol does not equal higher corn prices originally appeared on BloggingStocks on Tue, 15 May 2007 14:00:00 EST. Please see our terms for use of feeds.