The money that has fled the market recently has done so indiscriminately, allowing us the opportunity to find exceptional value in companies that have been successful deep-in-the-money plays in the past.
The best buying opportunities now come from the largest, most risk-averse, stable companies. These companies' stocks are victims of market conditions, rather than actual performance -- unlike the market correction in 2001, the earnings of many companies today justify their valuations.
Archer Daniels Midland
certainly fits that bill.
At its close yesterday of $32.45, the stock sits just above its 52-week low of $30.20. I love this company, as you can clearly tell: This is my third column featuring the stock.
It's not often that you can find both value and growth in the same company, especially one that is flirting with its 52-week low.
However, if you look at the numbers, it's clear that this agricultural giant should be trading significantly higher. The stock boasts a
P/E ratio of 13 and a forward P/E of a mere 10. Combine that with quarterly revenue growth of almost 30% year over year and earnings growth of over 100%, and you have yourself a quality DITM call play.
ADM's business centers on agricultural commodities and products, which provide a solid base. But the company's extraordinary growth and potential for even greater future returns comes from its ethanol division. With the emphasis on finding cheaper alternatives to oil, ethanol at this point is more than just a fad.
Brazil is a model example of efficient integration of ethanol into the energy market, and ADM continues to forge more ties and develop a closer relationship with the country and its stream of ethanol production.
In my last
column on ADM, I emphasized the potential for ADM's new biodiesel plant in Brazil to bring the company closer to the country's ethanol community. Although the biodiesel plant will help fuel profits, it will also function as an investment in ADM's future and the U.S.' future in ethanol. With that in mind, I will once again purchase DITM calls in ADM.
Staying consistent with my usual game plan, I am going to buy 10 January 25s (ADMAE) for $8.30 or better. If my limit order is filled, I will be in control of 1,000 shares of ADM common stock all the way until the third Friday of January.
Game of Life
Unfortunately, we are forced to deal with the concept of death. Whether it is a loved one, a pet, or even a stranger, death invariably touches upon our lives, forcing us to reconsider our own lives.
We hear about a murder on the news or the sudden death of a teenager and sit there frowning, genuinely upset about what we have heard.
The sting may last a few hours, or perhaps even a day or two, but soon enough, the distance between you and the incident grows wider until you have completely forgotten about the stranger on the news. When it hits close to you, however, the sting doesn't seem to ever go away. We are left with memories of how it used to be, and the initial shock of losing someone so close never dissipates.
For Yone Minagawa, death came at a time later in life than for most. She recently died at a nursing home outside of Tokyo at the age of 114. As of January of this year, Minagawa was officially recorded as the world's oldest human.
Born in 1893, the same year of the first played college basketball game and Grover Cleveland's first year as president, Yone outlived all but one of her five children. She is survived by seven grandchildren, 12 great-grandchildren and two great-great-grandchildren.
Japan is known to have an average life span that is longer than those of most other countries. In 2006, Japanese women set a new record for life expectancy at 85.81 years, while Japanese men have an average life expectancy of 79 years. Many scientists attribute this to the healthy diet of rice and fish. The number of Japanese people over 100 years has quadrupled in the past 10 years, at just below 28,000.
Coping with loss is different for every individual, but the desire to preserve the memory of a lost individual is omnipresent in every broken heart and fallen tear. However, sometimes loss is not synonymous with death.
We cherish relationships and unfortunately the possibility of betrayal too often becomes a reality. It's essential to cherish the moments in a friendship while you can, because the ephemeral nature of such is undeniable. Sometimes the pieces fall against your favor, and you fall a victim to circumstance.
The Players Club understands the uncertainty of life and all of its relationships. For professional athletes, the life of their careers are shorter-lived than most. Relationships are developed, sometimes to mask an ulterior motive that doesn't surface until the rain has already begun to fall.
By guaranteeing recurring cash flow to professional athletes through our strategic partner, The Players Club endeavors to lengthen the life of professional athletes' careers by ensuring financial security. Nonetheless, as we all know, financial security does not denote happiness or success. Loyal and beneficial relationships are instrumental to our happiness; yet one must not lose fact of the sight that any and everything related to friendship or relationship is a risk.
All we can do is hope that the more we risk, the more we will ultimately be rewarded.
Always remember: Life is a journey; enjoy the ride!
At the time of publication, Dykstra was long ADM.
Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."