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The Motley Fool's Weekly Editors' Picks

http://www.fool.com/investing/general/2012/07/28/the-motley-fools-weekly-editors-picks.aspx

Kris Eddy
July 28, 2012

Fools were out and about this past week in an investing world jam-packed with actions and ideas. Here are three articles you might find useful as you decide how to invest your money.

The Unexpected Consequences of the 2012 Drought
Drought conditions aren't going to wallop farmers and grocery shoppers to the extent you might think, Fool analyst Brian Stoffel wrote. "If you're looking for who loses from rising corn prices, there are two places to look: livestock producers and corn processors," he wrote.

Concerns that margins for high-fructose corn syrup would be pinched caused Morgan Stanley to downgrade Archer Daniels Midland (NYSE: ADM  ) , Brian wrote. ADM has more than 265 processing plants where it converts corn and other crops. It processes 2.6 million bushels of corn per day, according to the company's website, producing more than 24 different food and feed ingredients and industrial products from corn, including sweeteners, starches, fuel ethanol, and animal feed.

Heckmann (NYSE: HEK  ) also stands to lose from the dry weather, Brian wrote. The company handles the water needs of energy companies using "fracking" techniques to extract oil and natural gas from the ground. Fracking uses loads of water, Brian noted, and some states have suspended fracking in deference to the drought. "[I]f fewer companies are paying Heckmann to use its water system, the company will be collecting far fewer fees," he wrote.

Read the article for more insight on what the drought might mean for investors.

1 Huge Warning Sign You Need to Notice Now
Fool analyst Alex Planes took a step back to look at the trend in companies that are failing to report the numbers Wall Street had expected. Thus far, 2012's second quarter looks almost exactly like 2008's, Alex reported, with about 30% of companies missing earnings expectations and roughly 58% beating. That's an unusually high amount of misses.

Chipotle (NYSE: CMG  ) was one popular stock that disappointed investors with its second-quarter results, Alex wrote. Chipotle reported its earnings on July 19; shares dropped from just over $400 on July 19 to just under $300 on July 25. Long-term Chipotle investors shouldn't panic, though, noted Fool analyst Alyce Lomax, who owns shares of the company in the real-money portfolio she manages for Fool.com.

Alex noted that over at Netflix (Nasdaq: