ANDE Andersons Agriculture Stock Setting Up For 50 Dollar Price Target

by Olivier on September 21, 2010

Today ANDE – Andersons Inc. found its way into my portfolio. I chose ANDE for starters as it is a rather slow mover. The time will come to ramp up position sizes and trade more aggressive stocks. No need to rush things after a trading break.

ANDE looks interesting as it is part of the ‘Agriculture Investment Theme’ which is gaining traction. I mentioned ANDE along with corn and coffee in the past. As mentioned in the former post ANDE does have overhead resistance but as it is not in the immediate past it shouldn’t be too much of a problem. That being said volume needs to kick in soon in order for momentum to develop.

The potential 50 US$ price target for ANDE is much easier to identify on the weekly chart. So here it is:

ANDE - Andersons Weekly Agriculture Technical Analysis Chart Price Target

Click the chart to maximize.

The target area is highlighted. Here’s a list of things I like about the chart:

  • The price target is ‘only’ 20% away. If the stock starts to move the price area is more likely to act as a strong magnet.
  • 50 USD is a round number. Stocks like to touch round numbers. The logical target for an uptrending 40 dollar stock is 50 US$
  • Price is trading above the weekly MA 30.
  • The weekly moving average 30 was flat and is now starting to move to the upside.
  • Bullish ascending triangle chart pattern.
  • Thrusting move into the triangle. From a technically perspective a break out is more likely to resume the trend leading into the pattern. The next thrusting move therefore should be up.
  • Stop Loss is not too far away. Judging from the pattern pressure the stock should show its hand pretty soon. If I get stopped out losses will be small and I will probably know pretty soon.
  • The Ag Sector as a whole is moving up. We therefore have a set-up where a ‘rising tide raises all ships’.
  • Agriculture Sector Overview Chart

ANDE Andersons Inc. Agriculture Daily Chart Technical Analysis Stock Price Target

Here’s the Daily ANDE – Andersons chart on my public list.

ANDE – Andersons Company Website

Business Summary:
The Andersons, Inc. engages in the agriculture and transportation businesses in the United States. Its Grain & Ethanol Group segment purchases and merchandises grain; operates grain elevator facilities located in Ohio, Michigan, Indiana, and Illinois; and provides management and corn origination services to ethanol production facilities. This segment also involves in the movement of physical commodities; and the trade of whole and distillers’ dried grains, feed ingredients, biofuels, cotton, freight, and other commodities. The company’s Rail Group segment buys, sells, leases, rebuilds, and repairs various types of used railcars and rail equipment. It also provides fleet management services to fleet owners, and operates a custom steel fabrication business. Its Plant Nutrient Group segment purchases, stores, formulates, manufactures, and sells dry and liquid fertilizer to dealers and farmers, as well as sells reagents for air pollution control technologies used in coal-fired power plants. It also provides warehousing and services to manufacturers and customers; formulates liquid anti-icers and deicers for use on roads and runways; and distributes seeds and various farm supplies. The company’s Turf & Specialty Group segment produces granular fertilizer products for the professional lawn care and golf course markets; and private label fertilizer, corncob-based animal bedding, and cat litter for the consumer markets. This segment also sells consumer fertilizer and control products for ‘do-it-yourself’ applications, to mass merchandisers, small independent retailers, and other lawn fertilizer manufacturers and performs contract manufacturing of fertilizer and control products. Its Retail Group segment operates The Andersons retail stores, a specialty food market, a distribution center, and a lawn and garden equipment sales and service shop. The company was founded in 1947 and is based in Maumee, Ohio.

The experience of ages has shown that a man who works on the land is purer, nobler, higher, and more moral… Agriculture should be at the basis of everything. That’s my idea. – Nikolai Gogol

My public list with all my charts can be viewed here:

Buenas noches!

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