Archer-Daniels-Midland is Overpriced

Archer-Daniels-Midland (ADM), the large grain processor and ethanol producer headquartered in Decatur, Illinois, has formed a price bubble that is well above the upper boundary of its price channel. After peaking at $45.15, ADM has come down to $40 but the stock remains overpriced.

Don't chase this stock. If you are interested in buying ADM, wait until its price settles back into the $35 range, which is in its price channel.

Posted May 20, 2006.