Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Agriculture Stocks—These Two Are Doing Very Well on the Stock Market

Wednesday, November 7th, 2012
By for Profit Confidential

Agriculture StocksI firmly believe that the commodity price cycle still exists and that agriculture is going to be a key asset for stock market investors over the next decade. We’ve already had a terrible drought this year that affected agricultural commodities, but the global business cycle in terms of supply and demand is still promising for agribusiness and agriculture stocks.

One agriculture stock that’s been a real standout this year is Bunge Limited (NYSE/BG), and I bet it’s a company you’ve never heard of. On the stock market, Bunge has been rocketing higher since April, and one look at the company’s financial results tells the story.

Bunge is in the business of transporting and processing agricultural commodities. The company is based in White Plains, New York, with global operations at the wholesale and retail levels. It has approximately 35,000 employees in more than 40 countries and is a well-known player in global agribusiness.

The company originates oilseeds and grains from the world’s primary growing regions and transports them to customers worldwide. Bunge also crushes oilseeds for the livestock industry; produces bottled oils, mayonnaise, margarines, and other food products for consumers; crushes sugarcane to make sugar and ethanol; mills wheat and corn for food processors, bakeries, brewers, and other commercial customers; and sells fertilizer to farmers in North and South America. (Source: “Company: About Bunge,” Bunge Limited, last accessed November 6, 2012.) You name it; if it’s related to agricultural commodities, Bunge is likely involved in the process.

The company’s stock chart is featured below:

Bunge Ltd Chart

  • Double Your Money Twice a Month?

    Hottest stock-picker on the planet could make you richer 92 times! Over the past five year period, 86% of the stocks we picked made money—92 winners out of 107 picks! Average straight profit per pick: an amazing 54.1%!

    Click here now!

Chart courtesy of www.StockCharts.com

According to Bunge, its 2012 third-quarter revenues grew to $17.3 billion, up from $15.6 billion in the third quarter of 2011. Net income attributable to Bunge was $297.0 million in the latest quarter, up from $140.0 million in the comparable quarter. (Source: “Bunge Reports Third Quarter Results,” Bunge Limited, October 25, 2012.)

As an agriculture stock, Bunge has been pretty flat on the stock market since the financial crisis. Only recently has the position meaningfully accelerated on the stock market, rising to its current level of around $73.00 a share, up from $57.00 in early June.

Large-cap companies operating in multiple businesses like Bunge dominate agriculture stocks. Many of them pay dividends to shareholders, but most have mixed track records on the stock market. Agrium Inc. (NYSE/AGU) has one of the best long-term track records for an agriculture stock. (See “One of the Best Things Going in the Main Street Economy Today.”) As a group, the track records aren’t consistent.

I think some exposure to select agriculture stocks will turn out to be a good move, seeing how the commodity price cycle is playing out in this sector. In an age of austerity, stable businesses on the stock market are the most attractive.

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: +1 (from 1 vote)

This is an entirely free service. No credit card required.

We hate spam as much as you do.
Check out our privacy policy.

Mitchell Clark - Equity Markets Specialist, Financial AdvisorMitchell Clark, B. Comm. is a Senior Editor at Lombardi Financial specializing in large- and micro-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Income for Life and Micro-Cap Reporter. Mitchell, who has been with Lombardi Financial for 17 years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. Add Mitchell Clark to your Google+ circles

The Great Crash of 2014

A stock market crash bigger than what happened in 2008 and early 2009 is headed our way.

In fact, we are predicting this crash will be even more devastating than the 1929 crash…

…the ramifications of which will hit the economy and Americans deeper than anything we’ve ever seen.

Our 27-year-old research firm feels so strongly about this, we’ve just produced a video to warn investors called, “The Great Crash of 2014.”

In case you are not familiar with our research work on the stock market:

In late 2001, in the aftermath of 9/11, we told our clients to buy small-cap stocks. They rose about 100% after we made that call.

We were one of the first major advisors to turn bullish on gold.

Throughout 2002, we urged our readers to buy gold stocks; many of which doubled and even tripled in price.

In November of 2007, we started begging our customers to get out of the stock market. Shortly afterwards, it was widely recognized that October 2007 was the top for stocks.

We correctly predicted the crash in the stock market of 2008 and early 2009.

And in March of 2009, we started telling our readers to jump into small caps. The Russell 2000 gained about 175% from when we made that call in 2009 to today.

Many investors will find our next prediction hard to believe until they see all the proof we have to back it up.

Even if you don’t own stocks, what’s about to happen will affect you!

I urge you to be among the first to get our next major prediction.
See it here now in this just-released alarming video.