The time has finally come to issue a SELL recommendation for Archer Daniels-Midland (ADM.) The stock has performed moderately since the Research recommendation was issued on September 5, 2008. It is highly recommended that anyone who bought the stock based on my research should re-read the posting. As I was wrong about the extent the stock would fall, I will most likely be wrong about the upside as well. From the current level of $25.06, ADM is poised to reach the $30 level with no effort. However, the returns that this stock has provided in the last two months say that it is worthwhile considering alternatives.
ADM was recommended when it was trading at $22.97. As of Tuesday November 4, 2008 ADM was quoted at $25.06. This equals a return of 9.09% in 2 months. Conservatively, on an annualized basis this would equal approximately 54% return. Selling this stock now also generates a return 4 times the amount of the dividend yield if the stock was held for a whole year.
It is always recommended that when selling a stock, one should not place an order after hours or when the market is closed. This leaves the seller in the position of being vulnerable to the whims of the market makers. Instead, place your sell orders only as a market order during market hours. Some would complain that a market order during market hours might leave some profits on the table. However, I would rather leave some money on the table rather than have it taken away from me by the trades that are placed by institutions and market makers.
Click on the link to learn more about Dividend Inc.
