The Sunday New York Times business section says that you can't make money off of ethanol. They're wrong.
I want you to swap out of Archer Daniels Midland (ADM), into a whole new house of pleasure, and it's called Andersons (ANDE). That's if you want to try to make some hard-earned ethanol money.
ANDE - it's smaller, it's faster, it's cheaper than ADM. That's why I want you to do a 'mon-back.
I think that ANDE was the punch line that the New York times left out of this article.
All right, how about some caveats? I need to be up front. This is a riskier play. Why? Because the volume on ANDE - how much the stock trades - is on the low side.
That doesn't mean you can't invest in it. It does mean you must use limit orders! It does mean you must proceed with caution, because stocks with low volume could be bid up quickly, for those who don't listen.
Now, these guys don't just grow corn; they don't process ethanol. Man, they're in a business that I thought went away frankly. They operate grain elevators.
Bill gates (who invested $84 million in pacific ethanol - PEIX) is right about the big idea, but wrong about the company - sell, sell, sell!
Put your money here, into ANDE!
How does this work? If we're going to be using more ethanol, then we need someplace to store corn! Corn is still the cheapest way to make ethanol, despite all the speculative technology that the times tells us about.
Right now, most cars can run on fuel that's 10% ethanol. It only costs $100 per auto to build this into cars. So, converting into mostly ethanol fuel will not be too expensive.
But, once that happens, we need the gas stations to stock ethanol fuel. And we need to be growing and storing more corn to produce the fuel.
That's why I think ANDE will be raking it in with their grain operators. Their elevators are going to be chock full.
Right now, we're in planting season. Come harvest time, I think this stock makes you some mad money.
There's really no way around this. You grow a lot of grain, you end up paying to store it, or you sell it to the co. That operates the grain elevator for a lower price. Because there's just so much darn grain. Either way, ANDE gets its cut!
They're not just an operator of grain operators. Just last month, they announced that they're going to build the largest ethanol plant east of the Mississippi! 110 million gallons of ethanol a year. Hey, that's better than a sharp stick in the eye.
Plus, they've also got a great rail business. Remember, we've got one nifty bull market for the railroads. That's why I liked the Koppers (KOP) last week for the creosote. Hey, two thumbs up, way up.
The bottom line!: ANDE is the king of offbeat bull markets in ethanol and railroad cars. I think that makes it - buy, buy, buy! - a triple buy!
|Cephalon Inc (CEPH)||Vasco Data
|MannKind (Nasdaq: MNKD)||Applied Micro Circuits Corporation (AMCC)|
|Finisar Corp (FNSR)||JDSU
|Bookham Inc (BKHM)||Ciena Corp
|MRV Communications Inc (MRVC)||General Dynamics Corp (GD)||Commerce Bancorp (CBH)|
|Cisco Systems (CSCO)|| Las Vegas Sands Corp
|Neoware (Nasdaq: NWRE)||Intel Corp
|Pharmaceuticals Inc (ACAD)||Texas Roadhouse (TXRH)|
|New York Community Bancorp
|Wynn Resorts Ltd (WYNN)|| Tim Hortons Inc
|Allscripts Healthcare Solutions Inc
|Lucent Technologies Inc (LU)||Sirius Satellite Radio
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Today, I need you to pimp on over to Australia and buy some Macquarie Bank (MBL.AU).
know, that means you've got to go to Australia. Now, there's an
adr (MQBKY.PK - not recommended by Cramer) that trades over the counter
in America, but actually I think you should go buy some Australian
dollars. It's not that hard, okay. And buy the stock down
of the reasons that I say it's not that hard is that I like the
Australian dollar right now. It could be a double whammy in your
favor. And I don't like buying stocks that are over the counter
because you'll go in, and you'll bid them up and, of course, blame me.
Barron's named MBL's CEO, Allan Moss, as one of the best 30 CEO in the world. But I don't think you want this thing because it's got good management. Besides, I actually don't really care what Barron's has to say about this co.
Do we like it because it's got a lot of Australian exposure and Australia's booming'? One reason.
Do we like it because they're one of the big financial services co.s that run the show in southeast Asia? Not bad.
I like this stock because it's got connections with the Australian
government? In a way that would make even our American
politicians wretch? And remember, we live in a country that
invented the govt of 'by and for the corporations.'
MBL had John Howard, the Australian prime minister, he opened their office in Bombay on March 8th.
This is an amazing, but it's still not why I like MBL.
like this bank because it buys infrastructure! Right now, it's in
talks to buy the Pennsylvania turnpike. I also think it's the
answer to John Corzine's (governor, NJ) prayers, because NJ needs
money, and it could do without the Jersey Turnpike.
already own the Chicago skyway. They've got a lot of properties in
Australia; some in Europe too. They've bought water
utilities. The last one was Aquarion up in new England.
Let's examine MBL's business model. MBL buys a property, invest money in it and then sells it for a profit.
now, I think we've got a serious bull market in infrastructure. I
think mbl's got a proven way to make you money in that bull market.
had a lot of great opportunities in America, and they should continue
to be able to get good deals, because our states just simply aren't in
great financial shape!
if MBL can get tight with the Australian prime minister, how hard would
it be for them to get tight with John Corzine in jersey? The guy
used to run Goldman Sachs. He speaks the same language the guys
at mbl do, and it makes so much sense for them to lease them the
Bottom line!: I need you to pimp down to Australia and take some Aussie dollars and buy mbl. I think you could make a lot of money!