Take Profits!

ADM Reports, Stock Rises

By Bryan Bottarelli
Tuesday, May 02, 2006 9:56 AM EST
Tue, 2 May 2006 14:56:00 GMT

Dear BottarelliReserch Member,

This morning, Archer Daniels Midland (ADM – NYSE), reported very strong earnings — and the stock is actually up!

One of the world’s largest agriculture processor reported a 29% rise in Q3 earnings, fueled by increased demand for processed oilseeds and corn byproducts like ethanol.

Net income jumped to $0.53 cents per share while Thomson Financial was calling for $0.46. Last year, ADM earned $0.30, so that’s quite an increase.

The May 35 Calls (ADM EG) you entered yesterday for $3.30 have traded as high as $4.40. That’s good for a 33% gain! As I write, the calls are trading for $4.20, so let’s take the profits now!

TAKE PROFITS: Sell your ADM May 35 Calls (ADM EG) at or above $4.00, good for the day. Hold the remaining half.

If you have a moment, shoot me an email at: bryan@bottarelliresearch.com and tell me how you did!

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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