Expert: Dr. Joseph de Beauchamp - 11/16/2006

Question
With the anti-trans fat fervor now leading to significant legislation in the U.S. and Europe, I am looking for companies that specialize in the types of oils to which restaurants will be switching.

I have looked at Bunge (BG) for processing and I think Archer Daniels (ADM) might be a good play on the commodities side, but is there a more pure play on these oils? Archer Daniels also gives an investor exposure to the demand for ethanol but I would like to find a company that will benefit more directly and exclusively from the switch to non-trans fat oils.

Any ideas on public companies?

Thank you,
Joe Hogue


Answer
As an financial analyst writing on 2000 companies, I see things differently than an investor. ADM is the best company ever that I have seen. They have the most investor contact of any company that I have ever seen. More mailings and more phone calls back to me than any other company on the planet.


I would start with the question: should you own stock(s) at all? You might consider a mutual fund instead. I only recommend stocks to people that can afford 10 stocks. You might want to look over the Valueline and Morningstar in the local library.

Dr. Joseph deBeauchamp