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Seaboard Corp. Message Board

  • googoryhoo googoryhoo Jul 9, 2007 11:59 PM Flag

    what is the future of SEB

    I'm very new to investing. I've been working for a painter during after school all throughout high school. I've saved some money that I would like to put into a good stock that I can hold on to for a really long time. Can SEB be a good place for me to buy a share?

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    • Buy SEB. Keep it till you retire and you'll be really happy. I got in at 190 in 1991. In the 50's I'm told you could buy for $5. In 40 years it'll be 100 grand+. The Bresky family wants LOW prices for estate planning purposes. (They never sell.) Someday they will have to sell and you or your descendants will participate. At that time they'll get the price HIGH.

      It could easily go back below $1000, or up to $5000 or more in a few years. But hold your initial position till you retire. (Look at the gross revenue and cash flow growth, not the earnings, if you get worried. But let Bresky worry for you.)

      Most of us on this board trade the stock. But that's just a gamble. Do nothing and you'll get richer.

      Or trade the stock. That'll bounce the price around and us traders will do better. But hold your initial position no matter what.

    • Googory:
      Before you buy this stock you need to know the industries involved and know how to read and analyze financial statements.
      If you are starting out, and this is your first investment, buy a mutual fund that mimics the Standard and Poors 500 index, like Vangaurd's VFINX. This will give you good returns without the risk and times of panic that you will get with this stock. Do you really think that you are not going to panic when you see this stock drop over $100 in one day?

      Have you read a biography of Warren Buffet? Have you read annual reports from several companies? Have you read a Valuline report on this stock? - You can read it at a larger library!

      Best of luck, but being an investor is not for the faint of heart.

      • 1 Reply to ldbert1
      • Good insight and agreed. Knowledge about - or desire and action to learn about - the industries SEB is involved in is essential to long term participation. SEB is diverse per their web site and is involved in many niche businesses, none of which are commong knowledge. Containerized cargo shipping, pork and other food processing, etc. are all subject to trends and information that are a little more difficult to come by and find than mortgage rates for homes.

    • For the long-term, without sounding too opinionated, yes.

      SEB is shareholder friendly in many ways, despite the bulk of the shares being controlled by the family. They have an established pork and food processing business and a booming containerized shipping business that serves the Caribbean basin - they are the largest provider of such. Unlike many shipping companies, they own a good portion of their vessels, not lease. Additionally, they own the boat and do not simply charter out trips. Many shipping companies are highly leveraged in debt and obtain their stock values from the dividends paid out - huge portions of available net income. SEB has limited debt and retains much of their cash flow for operations, that produce very strong ROE.

      The bad news is that SEB has already had a very strong run the past 6 months - I would not expect a double in a month by any means. The stock may also go through long periods (e.g., years) of relatively sideways trading, but ultimately, the shareholders equity generated by this company will come into effect and continue the upward trend. That at least is the theory.

      If you are willing to hold for 5-10 years, however, I believe you will outperform the market.

      But, that is just an opinion. However, if you want my take on it, I first bought at $1,289, added at $1,701, added at $2,030, added at $2,235, and added, at $2,275.

 
SEB
2,580.00-34.65(-1.33%)Feb 9 4:00 PMEST