ADM Can’t Hold On

Calls Stopped, Possible Re-Entry Coming

By Bryan Bottarelli
Tuesday, April 25, 2006 4:37 PM EST
Tue, 25 Apr 2006 21:37:00 GMT

Dear Bottarelli Research Member,

Just one more thing: As I publishing the PDS “take profits” alert, our play on ADM couldn’t hold the $37.00 level, which pushed your ADM June 35 Calls (ADM FG) down to our stop price at $3.00. As I mentioned in the last alert, I remain bullish on the future upside potential of ADM stock, as ethanol continues to receive national attention. Going into the summer driving season, I would think the “buzz” surrounding this new gasoline alternative gets even stronger.

ADM

If you look at the chart, you’ll notice that every time ADM has a brief sell-off, the stock always recovers. Even today’s morning up-move touched a new 52-week high at $39.01, which pushed your June 35 Calls up to $4.50 before experiencing the down-turn. So despite today’s $3.00 stop, I’d keep ADM on your watch list, as I expect to be back in the stock very soon. There is nothing in the news today to warrant the selling pressure, so it could be a simple case of profit-taking. To me, this means that our second go-around playing ADM calls could very well make up for this loss — with a lot left over!

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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