Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, July 11, 2014

Article Excerpt

ARCHER DANIELS MIDLAND CO., $47.85, New York symbol ADM, processes corn, wheat, soybeans, canola, flax seed, peanuts, cocoa and other crops into a wide variety of food ingredients, such as flour, oils and sweeteners. It is also the largest maker of ethanol from corn in the U.S. This week, the company agreed to buy Switzerland-based WILD Flavors, a privately held firm that supplies natural ingredients to over 3,000 food and beverage makers. Archer Daniels will pay 2.3 billion euros (or $3.1 billion U.S.) for WILD when the deal closes by the end of 2014. That’s equal to 10% of Archer Daniels’ $31.3-billion market cap (or the total value of all its outstanding shares). Demand for WILD’s products is steady, which will help offset the volatility of Archer Daniels’ commodity trading and processing businesses, where weather- and transportation-related delays can significantly affect profits. The purchase will add $1.4 billion to Archer Daniels’ roughly $90 billion of annual revenue. There is little overlap between WILD’s European…