Sunday, April 30, 2006

It's Time to Buy the Chicken Processors

Courtesy of SeekingAlpha:

"Flu season is over, and bird flu hasn’t materialized as a major problem. The air is being let out of Gilead Sciences and several chicken stocks are experiencing the unwinding of their shorts (always a pleasant sensation).

Probably the most stable and productive of these companies, on a long-term basis, is Sanderson Farms (SAFM). SAFM has a short ratio in excess of seven days to cover and probably has room to run from here -- it has a ways to go to get to where it was a year ago. Other producers of interest include Tyson (TSN), Pilgrim’s Pride (PPC), and the Mexican producer Industrias Bachoco (IBA)."

Oddly enough, we were one of those who bashed on Tyson Foods, and with good reason. Tyson got hammered after we scolded it.

Speaking of chickens, check out the analysts on Sanderson -- only 4 follow the stock and the consensus for 2006 EPS is that there isn't one. Analysts think Sanderson could lose up to $2.40 a share or earn a profit as high as $1.50. Ummm, thanks. That helps.

About Us | In the News | Management | Contact Us | Archive | Premium Membership | Terms of Use | Privacy Policy | Careers | FAQ

All quotes are 15 minutes delayed. Copyright © 2006 by Catablast! Media Group LLC, part of the SeekingAlpha network. Web Design by Synexio Systems. All Rights Reserved.