- The stock is a momentum name and was hurt badly by fund liquidations. Stock is up from $33 this month so I will be careful with entry point.
- Bunge, based in White Plains, NY, primarily operates in South America. It has three businesses; Agribusiness, Fertilizer and Food. Revenues are about $52 billion.
- Its Agribusiness buys, stores,and processes grains.
- The Fertilizer segment produces fertilizers and farm nutrients by mining.
- The Food group makes edible oils, flours, corn meal and soy.
- Shares of BG sell about 4x last year’s EPS and about 6.1X forward earnings.
- PEG ratio is under one.
- ROE is almost 20%
- Debt to Equity is 0.05
- Last quarter’s earnings were down 33% YOY as it met tough comparisons and falling commodity prices. Revenues were up 52% YOY.
- Average EPS estimates for next year are about $8/share with high estimates over $11/share.
Disclosure: bought BG on 12/31. The market in BG seems quirky; limit orders seem to be the way to go.
