Archer: Plant Your Money And Watch It Grow

Archer: Plant Your Money And Watch It Grow

global food-processing and commodity trading company. It's not a fantastic industry, but it is a required one.


Archer (NYSE: ADM) may be the McDonald's (major industrial corporation) of the Old MacDonald business (farming). ADM's market cap is close to $24B and its Q2 2013 revenue was $22.5B (Financials obtained from other information from ADM annual reports). ADM is a global food-processing and commodity trading company. It's not a fantastic industry, but it is a required one.

ADM operates in three main segments - Oilseeds Processing, Corn Processing and Agricultural Services. All the revenue in all these segments is generated by turning crops (corn, soybeans, etc.) into products (ethanol, high fructose corn syrup, soy proteins, etc.). These are somewhat complicated processes that most but the largest farm business would be unable to do for themselves. ADM is boring but necessary which can be exactly the type of business that could generate consistent and ongoing profits. ADM is a well established company with a dominant position in agribusiness. For instance, ADM is the biggest corn processor in the world and corn is the number one crop in the world.

Human beings have already been farming because the dawn of civilization, so it is not the type of business where you will see revolutionary changes. This means that MoneyArcher should be made out of incremental improvements. ADM features a good track record of delivering these. In fiscal year 2012.5 ADM freed up a thousand dollars of cash through inventory reductions, sales of non-core assets, and reducing collateral requirements on borrowings (unless otherwise specified, all numbers in this informative article are from ADM reports and investor presentations). ADM continued these improvements into H1 2013 and freed up another billion dollars. The Ab muscles existence of a fiscal year 2012.5 is another example of the type of incremental improvements ADM delivers. 2012.5 is a half year reporting period, which allows it to synchronize future reporting years with the tax and regulatory year. This can save time and money.

Agriculture is a fundamental part of the economy and can be - at the least until science finds a way for people to execute photosynthesis (and even then corn has a variety of industrial uses). ADM's middleman position provides diluted exposure to this important sector in exactly the same way that running a gold miner provides exposure to the buying price of gold. The relatively non-cyclical nature of agriculture makes ADM an excellent defensive stock (its beta is simply 0.41) and as I mentioned in Boring is Good, low beta stocks have a tendency to outperform the market in the long run. ADM is well diversified geographically, by crop, and in the services it provides. It will help ensure stability, helping to make long-term planning and improvements easier.

I'm constantly on the lookout for attractive DGI values. As the market rises, creating new record highs, this search is now more and more difficult. I know I complain about any of it from time to time, but in reality, as someone who's nearly fully invested, this frustrating search is really a fairly nice problem to have. Since a simple tenet of dividend growth purchasing a long term, equity-focused, buy and hold-type mindset, I suspect that many DGI investors have been in a similar boat.

The fear of missing out (FOMO) is a constant issue for several investors. It's the causes of irrational momentum to build in the markets, sometimes resulting in bubbles. In a market similar to this, investors who feel like they're underweight equities are constantly on the lookout for attractive values or strong momentum plays to hitch their wagons too. Oftentimes, I do believe, this results in getting stuck in value traps or buying shares when they're too high. Thankfully, this isn't really an issue that dividend growth investors have to cope with because of their equity-heavy, long-term focus. But even so, I'm sure that I'm one of many in looking for deals.


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Predictions For The Season 15 Winner Of 'The Bachelorette' Are IN

Peter, a pilot and an undeniably attractive competitor, appears to be genuine, sweet, and looking for love. More importantly, we also catch a glimpse of him admitting his love for the Bachelorette in the season's trailer.


And the final rose goes to…

ABC just crowned their newest bachelorette, Hannah Brown. Although many fans opposed ABC's announcement naming Hannah B. the next bachelorette, the first two episodes are so far in her favor. Even though she seemed to struggle with her words, confrontation, and cumbersome personality in front of the cameras on the previous bachelor, Colton Underwood's season, it seems she has found her confidence, grace and everything in between to lead a pack of potential suitors.

The southern belle has a genuine desire to find love and a quirky persona that already has these men falling for her. In fact, one man whose name is Luke P. has already admitted to falling for Hannah on his first group date with her. Despite only meeting her once or twice previously, the fight for good reality TV has already begun. While there are many men who stand out, specifically for troublemaking capabilities and good looks, only one will go home engaged to Hannah, if any.

As most of you know the way the bachelorette narrows down her selection of suitors is by offering them a rose to stay and continue to help Hannah find love, sending those without roses home. Every week, the men are taken on either group dates or one-on-ones until the final four suitors are left which is when Hannah gets a sneak peek at their hometown and family life.

Although it's hard to differentiate between the suitors who are there to sweep her off her feet or for the fame of being on reality TV, there are four men who seem to stick out after only the airing of two episodes.

It is no secret that the show makes certain men more appealing to the audience than others so we can love Hannah's future hubby almost as much as she will. Mike, Peter, Jed, and Luke P. all appear to have what it takes to make it all the way.

Luke P. seems to be this season's troublemaker as he seems to start quite a few fights while also being called a "psycho" by fellow competitors in the trailer for upcoming episodes. He is the clear menace of the group which not only makes for entertaining television but a good fight for Hannah's heart. Unfortunately, he will (hopefully) not be getting down on one knee by the end of his journey.

There is not that much we have learned about Mike yet, but so far his conversations and annoyance with his peers' juvenile antics are qualities able to deem him a stand-up guy. We also see a sneak peek of him saying the three little words to Hannah that everyone wants to hear.

Peter, a pilot and an undeniably attractive competitor, appears to be genuine, sweet, and looking for love. More importantly, we also catch a glimpse of him admitting his love for the bachelorette in the season's trailer.

Fellow southerner, Jed is my prediction for this season's winner of Hannah's heart. While he didn't make a huge first impression on the first night at the mansion, his authenticity and charm begin to surface in last week's episode; not to mention his numerous cameos in the upcoming season's trailer cannot be a coincidence. Moreover, late-night host, Jimmy Kimmel, who is known for his accurate predictions of "Bachelor" and "Bachelorette" winners shares my hopeful expectation of Hannah giving her final rose to Jed.

Despite only viewing the first two episodes so far, reality television never fails to shock its audiences which we can only hope for on tonight's third episode at 8 p.m. on ABC.

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