By Shah Gilani, Shah Gilani – Total Wealth Research, 2024-07-31
A Note From Amanda: Nowhere is the idea of seasonality more obvious than in the commodities sector… and specifically, agriculture. But what about the companies that support the growers, farmers, and producers? In this edition of Buy This, Not That… Shah shares six stocks worth a look.
While there are countless other seasonal plays in the markets… Shah is releasing details on his No. 1 play for August TOMORROW. It's a unique, “undefeated” stock that has gone up every August since 2014. And he's got a great way to play it – with an average gain of 38% for 5 years straight. All it takes is holding during August. Get the details – plus the tickers of other undefeated plays – right here.
Life is full of rhythms and cycles – from the seasons changing to the ebb and flow of the tides.
The agriculture sector grows and wilts by the changing of the seasons… the weather… and supply/demand.
But what about the companies that support the ag business worldwide… from seeds to fertilizers to pest control? Do they follow the same cycles… or are they built for all four seasons?
It's a mixed crop with the six companies I want to show you today.
Archer Daniels Midland (ADM)
ADM is just a giant in the business. It's always been, in my opinion, an extremely well-run company. It's had its ups and downs.
But ADM, when you think about it, it's plant-based proteins, processing. I'm going to put it into the industrial biotech area also. It's got a lot going on. $31 billion-plus market cap. $92 billion in revenue for Archer Daniels Midland. Profit margin, 3.32%.
Bunge Limited (BG)
BG, again, is in the processing industrial biotech business. Think of it as a grain producer, sugar, ethanol. It's also in the milling business and processing.
Scott's Miracle-Gro (SMG)
Scott's Miracle-Gro is the largest fertilizer company for lawns, especially in the United States. Pretty big worldwide too. They're also into hydroponics, and they had a life business that they were using for growth, which I think they're going to sell off if they haven't already.
Corteva (CTVA)
Corteva is in the pesticides business, biologicals, and digital ag.
Nutrien (NTR)
Nutrien is a giant in the fertilizer business.
FMC Corp. (FMC)
FMC Corp. is in pesticides, biologicals, agricultural sciences, a lot of cool stuff.
