Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, March 15, 2024

Article Excerpt

ARCHER DANIELS MIDLAND CO., $59.31, New York symbol ADM, is still a hold. The company processes corn, wheat, soybeans, flax seed and other crops into a variety of food ingredients such as flour, oils and sweeteners. It’s also a leading producer of ethanol from corn, a gasoline additive that reduces harmful emissions. Archer recently suspended its chief financial officer in response to concerns about the accounting practices at its nutrition division. That business makes ingredients for human and pet foods, and it accounted for 8% of Archer’s revenue in 2023. After a review, which covered the years from 2018 to 2023, Archer determined that some sales between business units within the company were not recorded at amounts approximating market value. That lowered profits at the nutrition business, while slightly raising profits in two other divisions. The problems did not affect Archer’s overall earnings since they were made between business segments. The company is now implementing new rules regarding transactions between divisions. However, it will…