I am originally from Toledo, Ohio and most of you that hail from other places probably haven’t heard of this company. I plan to change that in this article about a stock that is performing admirably, and has much higher to go in my opinion. It is benefiting from the secular agriculture bull market and is also attractively valued. Meet The Andersons (ANDE).
The company engages in the agriculture and transportation businesses in the United States. Its Grain & Ethanol Group segment purchases and merchandises grain; operates grain elevator facilities located in Ohio, Michigan, Indiana, and Illinois; and provides management and corn origination services to ethanol production facilities.
Harvesting Profits
Earlier this month, the company reported fantastic fourth-quarter earnings which easily beat expectations. The stock got a nice pop after the company said earnings came in at $1.39 per share, above the consensus of 87 cents. Results were buoyed by strength in its grain and ethanol divisions, and management indicated that the good times would continue throughout 2011.
“Clearly, both our full year and fourth quarter earnings were heavily influenced by the results within our agricultural business units. The record full year and quarterly earnings in both our Grain & Ethanol and Plant Nutrient groups, reflects our solid position in this industry,” CEO Mike Anderson stated.
I think the stock will continue to hit new highs due to the raging agriculture bull market and improved operations in its grain and ethanol division. The stock is still cheap at about 11.7x estimates for 2011. There is a good chance that those estimates will be revised higher as the year progresses.
Analysts already bumped their numbers to $3.90 from $3.43 as a result of the report. Only four analysts cover the stock, so there is potential for mispricing of the stock. I see the stock hitting $60 over the next year, which would still be less than 15x forward estimates.
My Hometown Stock Is On A Roll is an article from: 
