Cramer Changes His Mind on Archer Daniels Midland (ADM)

Jim Cramer recommended Archer Daniels Midland (NYSE: ADM) on last night's Mad Money, saying that "when all of the weak players get washed out of an industry, the last man standing usually wins." With VeraSun Energy's (NYSE: VSE) bankruptcy filings, as well as the collapse of several other stocks within the ethanol industry, Cramer believes Archer Daniels Midland is now that last man standing. Cramer also notes that an Obama administration will certainly increase spending in ethanol, and Archer Daniels Midland should see upside from this.

Cramer likes how ADM is currently positioning itself: the nature its international business model makes it easier for the company to "shift its end product production to meet global demand." Cramer cites the recent sentiment change toward ethanol within the US. He points out that Archer Daniels Midland has recently shifted a portion of its corn syrup production back towards ethanol. Finally, Cramer said he likes ADM's bioplastics branch, which manufacturers bio-based plastics used in plates and utensils, etc.

Shares of Archer Daniels Midland are currently up nearly 2%, most recently trading around $25.00.

Archer Daniels Midland Company procures, transports, stores, processes, and merchandises agricultural commodities and products primarily in the United States.

You May Also Be Interested In

• Morgan Stanley Upgrades Telecom Argentina (TEO) to Overweight
• BMO Capital on FedEx (FDX): 'Guidance Appears Consistent With Our Forecasts'
• Liberty LiLAC (LILA) PT Lowered to $11 at Benchmark