$275, are you kidding me? that is 10 million less than q1. Do these people even look at chines wholesale pork prices? So far they are up 4% over q1. Holding volume the same, which is very conservative given q1 volumes were down 10% sequentially but holding volumes same as q1 and use a 4% price increase gets you to $296. The widening spread should increase GM up to the 12.70 % range bring net eps to .47.
I see where we kind of got sidetracked by whether HOGS sold retail or not. They so sell through "branded stores" whatever that means. But, in any event, my concern is that HOGS' pricing power is governed by the Peoples' Republic of China rather than by the market and by their costs. Is this a risk?
Probably. I see what you mean. However, isn't that a good thing? I don't think that means they put up money or collect royalties. For example, SKX owns some stores, its distributors own some stores but pay no royalties.
Note the size of the credit-line, algo!
How much did it cost?
Another example of bad Wall Street deal-making
would be Tyson's expensive acquisition of IBP
around the time of a Mad Cow scare.
HOGS shareholders certainly need to worry
about its financial advisors.
CHCL-shareholders should be quite alarmed.
but good example of "distribution" synergy.
WHB has studied HOGS filings for
several years now.
If I were an institutional researcher, I'd spend
over half my time comparing product quality
and prices in local markets.
I'd also be looking for compatible items with
high margins to recommend to Management,
such as unique seasonings.