Archer Daniels Midland Headed Higher, Says Market Timer Frank Kollar.
May 8, 2006 (FinancialWire) (By Frank Kollar)
Shares of high-flyer Archer Daniels Midland Company (NYSE: ADM) pulled back last week with a particularly nasty 7.5% loss on Thursday alone. ADM reported a 29 percent increase in quarterly profit on Tuesday, May 3rd, topping market forecasts. On both Tuesday and Wednesday share prices hit new highs. What went wrong?
ADM’s principal activities are to procure, transport, store, process and merchandise of agricultural commodities and products. Specifically, ADM makes a large part of its profits from the production of Ethanol. On Thursday, reports surfaced that a tariff on Brazilian ethanol may be rolled back. This would make ethanol cheaper and help bring gas prices down, but it would also likely cut into ADM’s profits.
ADM is not a high tech company with a catchy new invention, but its products are part of the solution for the ongoing energy crisis. This alone will keep interest high and this stock will, we believe, head higher. ADM remains a BUY in the Fibtimer.com (http://www.fibtimer.com) Stock Timer Portfolio.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
For up-to-the-minute news, features and links click on http://www.FinancialWire.net
FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on http://www.investrend.com/contact.asp
For a free annual report on a company mentioned in the news, please click on http://investrend.ar.wilink.com/?level=279
The NewsFeed is now available in multiple formats to your site or desktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268
© Copyright 1996-2006, Kollar Market Analytics, Inc.,
All Rights Reserved.
FibTimer reports may not be redistributed without
permission.
Disclaimer: The financial markets are risky. Investing is
risky. Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy or
sell any security. Opinions are based on historical research
and data believed reliable, but there is no guarantee that
future results will be profitable. |
