The Federal Reserve has guaranteed super-low interest rates for two more years – an unprecedented step to arrest the alarming decline of the stock market and the economy – and I believe the following seven agricultural stocks have been unjustly oversold and have significant upside potential. Words: 665
So says David Alton Clark (www.valiantones.com/) in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com (It’s all about Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Clark goes on to say:
Additionally, the stocks are trading well below consensus analysts’ estimates and have improving financial results; several have recent upgrades and positive analyst comments. With depressed yields of major agricultural crops leading to tight inventory levels, seemingly snowballing inflation, and the exponential growth in population and the burgeoning emerging middle classes of India and China, the soft commodities bull case remains intact. Below is a brief description of each company or ETF, a summary of current analysts’ up/downgrade activity and dividend yield. Please use this as a starting point for your own due diligence.
1. MarketVectors Agribusiness ETF (MOO): The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAX global Agribusiness index. MOO’s top holdings are Monsanto (MON), Potash (POT), Mosaic (MOS), Deere & Co. (DE) and Singapore-traded Wilmar International (WLMIF.PK).
2. The Mosaic Company (MOS): A producer and marketer of concentrated phosphate and potash crop nutrients for the global agriculture industry.
3. Potash Corporation of Saskatchewan Inc. (POT): Produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada. The company is trading below analysts’ estimates…
4. Monsanto(MON): Provides agricultural products for farmers in the United States and internationally. The company is trading below analysts’ estimates.
5. Archer Daniels Midland Company (ADM): Procures, transports, stores, processes, and merchandises agricultural commodities and products in the United States and internationally.
6. Syngenta AG (SYT): Engages in the discovery, development, manufacture, and marketing of a range of products designed to enhance crop yields and food quality worldwide.
7. Deere & Company (DE): Provides products and services primarily for agriculture and forestry worldwide.
In summary, with the S&P downgrade fervor calming and the Fed’s new stock market put, these stocks may be ready to resume their extraordinary ascent based on the same macroeconomic and fundamental catalysts that spurred on their market outperformance prior to the recent selloff…