This stock isn't over bought a company like Hormel is trading 23 times earnings hillshire is trading about 32 times earnings Tyson is sitting at 15 times earnings and its market cap is worth more than either of the other two. Do I think you will get rich on this stock not unless you have a ton. But a run up to around the $50.00 level shouldn't be out of the question.
Overpaid...a 71% premium from before the bidding started. I was saying to short TSN for the past few days on the HSH board simply put. I can see it getting back over $39 either today or tomorrow. 17 years of EBIDA Tyson is paying. The deal is not done until HSH withdraws their Pinnacle bid. Imagine if they did not pull that bid then things would really get interesting but their is a Dec.12 deadline for HSH and PP withdrew their bid today so we know almost all the facts now. I did nibble some TSN under and around $38 will hold for $39 or more.
I am curious about this as well. Why are BOTH Tyson's and Pilgrim's down 5-6% at this point? If it was a great deal that would provide a lot of future income at low cost, then I would have thought the winner would have gone up, and the loser down. On the other hand, if it was an overpriced deal, then I would think that the winner would be down, and the company that walked away would be up. Why in the world are both down???