New ethanol rules a plus for Archer

Article Excerpt

ARCHER DANIELS MIDLAND CO. $48 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 559.7 million; Market cap: $26.9 billion; Price-to-sales ratio: 0.4; Divd. yield: 2.8%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, flaxseed, peanuts and other crops to make a variety of ingredients such as flour, oils and sweeteners. The company is also the largest U.S. maker of ethanol from corn. Oil refineries add ethanol to gasoline, which increases octane and reduces vehicle emissions. The Trump administration now plans to lift the ban on summer sales of higher-ethanol blends of gasoline. While only 1% of U.S. gas stations are capable of handling the higher blends, the move could boost long-term demand for ethanol. Archer Daniels Midland is a buy. buy…