A few weeks ago the short sellers were saying this company was a fraud and Muddy Waters was going to hit them with a bad report. We have gone through a meltdown of the DOW and HOGS has held up comparatively well. If the shorters were sure of themselves this stock would be at 5 by now. I think the shorters create their own market and have moved on to other targets which makes me think this stock should rise a lot in the longer term.
The recent quaterly results were eye popping. •Revenues increased 70% •Diluted earnings per share increased 37%
1 item in stark contrast to these results was total metric tons sold. Revenue/Sales $ comes from products sold for HOGS. Earnings come from revenue. A scrutiny of the 2nd qtr 2011 10Q raised this issue with me.
The 2nd qtr 2011 total metric tons sold only increased 6.39% more than 2nd qtr 2010. A 6.39% increase in tonnage yielded 70% revenue and 37% earnings increase. The margins don't justify that, but pork inflation might. The real sales growth was 6.39% IMHO... Hogs is still undervalued by 30% if a future 6.39% sales/eps growth rate is estimated... Thoughts?
dupont, in a time of rapid inflation HOGS benefits from the price of what they buy being determined before the price of what they sell. One of the benefits of having those large cold storage facilities.
absolutely, HOGS management stepped up to defend big time. Man i panicked there for a second with CER and their lies, but i'm back to long and strong HOGS, they have made me $$$ several times over the last few years. Sub 9 = gift.