Tags: CPO | Corn Products International | food | corn | Cargill | agriculture | stocks

Another Way to Buy the Corn Boom

By    |   Wednesday, 08 Jun 2011 12:57 PM

It’s in your hamburgers, in your cookies, in your sodas, probably in your shampoo, and certainly in your car. So it’s hardly surprising that an industry leader like Corn Products International (CPO) is seeing skyrocket growth even in an economic downturn. Corn prices are at record highs.

Quite simply, CPO has its fingers in everything from starches and food ingredients to sweeteners such as high fructose corn syrup and glucose. It supplies diverse industries from cosmetics to textiles in more than 50 countries.

If you like corn as a commodity play, CPO can be a decent way to leverage the food as a stock investment instead. The company is focused on a single commodity, but it sources and processes so much that it can keep margins intact even when others are sinking. Ethanol producers, for instance, pay a $1 per bushel premium over futures prices.

CPO is a corn powerhouse like Cargill, but traded. Not convinced? Check out the numbers. The company is expecting net income between $4.85 per share and $5.15 per share thanks in no small part to enormous growth in all of its global sectors.

In its most recent earnings call at the end of May, sales rose by more than half thanks to its recently acquired National Starch business. North American business was up by nearly half, South American by just about a third, Asia Pacific by 133 percent and EMEA by a whopping 219 percent.

Near its high

Seven Summits Research says technical indicators for the stock are bullish. Standard & Poor’s gives CPO a neutral three stars out of five rating as a hold.

The stock has come down a few percentage points off of its 52-week high but it has about a 1 percent annual dividend yield.

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It s in your hamburgers, in your cookies, in your sodas, probably in your shampoo, and certainly in your car. So it s hardly surprising that an industry leader like Corn Products International (CPO) is seeing skyrocket growth even in an economic downturn. Corn prices are at...
CPO,Corn Products International,food,corn,Cargill,agriculture,stocks
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2011-57-08
Wednesday, 08 Jun 2011 12:57 PM
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