can someone tell me why this stock should not track the underlying price of the commodity that it sells? We should be much higher if that were the case. Here are Pork-Belly prices for the months shown (avg. monthly closing prices) Oct 2000; 44.70 Oct 2001; 70.10 Nov 2000; 44.95 Nov 2001; 79.10 Dec 2000; 49.30 Dec 2001; 81.42 Jan 2001; 50.32 Close today; 81.45
Prices seem to be up an avg. of 60% since last year. What am I missing?
Primarily, because hog prices are subject to shorter term variations, while stock prices are supposed to reflect longer term prospects. Also, SFD is a processor as well as a producer. I don't know enough to even conjecture why the stock has been down recently.