4-Star Stocks Poised to Pop: Bunge

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, agriculture and food company Bunge (NYSE: BG) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Bunge's business, and see what CAPS investors are saying about the stock right now.

Bunge facts

Headquarters (founded)

White Plains, New York (1818)

Market Cap

$6.78 billion

Industry

Agricultural products

TTM Revenue

$54.1 billion

Management

Chairman/CEO Alberto Weisser (since 1999)
CFO Jacqualyn Fouse (since 2007)

Return on Equity (average, last three years)

14.3%

Dividend Yield

1.4%

Competitors

Archer Daniels Midland (NYSE: ADM)
Mosaic (NYSE: MOS)

CAPS members bullish on BG also bullish on

PotashCorp (NYSE: POT)
Monsanto (NYSE: MON)

CAPS members bearish on BG also bearish on

Google (Nasdaq: GOOG)
Research In Motion (Nasdaq: RIMM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 675 of the 714 members who have rated Bunge -- or 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include mulledover and TSIF, both of whom are ranked in the top 2% of our community.

In November, mulledover quickly touched on Bunge's global significance: "[Archer-Daniels-Midland], [Bunge] and (the unfortunately private) Cargill are the center of the grain/seed processing trading world."

In a more recent pitch from last week, TSIF elaborates on that bullish description. Here's a sample:

Integrated, global, complete chain. … Debt high, but great cash/cash flow. … Populations continue to grow, farmers will continue to produce, prices may fluctuate radically from year to year, but if price of goods is not greater than price to produce over the short run, it will equalize out one way or the other. (same with gold/metals/etc). Food, generally, like the average weight per person, tends to outperform the S&P. Also, did I mention eating and barley are hobbies of mine, so I might be a little biased, but I don't think so.

What do you think about Bunge, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool’s own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro, and to receive a private invitation to join, simply enter your email address in the box below.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Motley Fool Rule Breakers pick. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 14, 2009, at 10:12 AM, chakkar1 wrote:

    Can this still outperform the S&P500, based on results announced yesterday? Can the Community consensus be off on this one?

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Bunge Limited

CAPS Rating 3/5 Stars

$60.07

-1.52 (-2.47%)

Outperform696

Underperform42

Rate This Stock