You know, if you want to see a real POS, take a look at ... ENRON! Or Amazon.com, or... I got in last year so I'm still up 20% even with the current downtrend, however, I'm in this for the long term. Given how the market is getting pummeled recently, I think SFD is holding up pretty well, esp. compared to stocks like EMC, Juniper and all the other hot shots. Also, I think the valuation on this stock is pretty darn good.
Your concerns are overdone somewhat on these issues. Norfolk is a very old plant and makes essentially one product. It will be absorbed into another facility as an efficiency move. The Utah roast was very unfortunate and I believe the company reported that the farm loss was around $2.5 million uninsured. The loss was very small in the scheme of things.
The Norfolk plant was very small and consolidating that business can be more productive. Companies dump aging facilities all the time. Relative to the size of Foods, the Utah event was not that big a deal and I believe they said in the information that was with the annual report that the loss was basically offset by profits on the sale of IBP stock.
Smithfield to close small Norfolk pork factory By MICHAEL DAVIS, The Virginian-Pilot � May 3, 2002
Meat giant Smithfield Foods Inc. will shut down a small backfat and smoked pork chop factory in Norfolk by November, idling about 160 workers.
Officials for the world's biggest pork processor said the company is closing the plant and consolidating its production into more efficient operations, including its large bacon, sausage, country ham and smoked meat facility in Smithfield.
Workers will begin to be let go around July 2, according to the company, with the entire operation phased out by November.
All displaced Norfolk workers will be allowed to apply for transfer to the Smithfield factory, officials said. The facility, which employs about 2,000 workers, can likely absorb most of the Norfolk staff, according to the company.
The Norfolk facility on East Indian River Road opened in 1980 and is operated under the Smithfield Packing Co. division.
Smithfield Packing is Smithfield Foods' original operation, founded by current chairman Joseph W. Luter III's grandfather and father in 1936.
Smithfield Foods also announced plans Thursday to sell its branded pork in Japanese stores through Ito Yokado Co.
The agreement makes Smithfield the first company to sell U.S.-branded pork in Japan, Smithfield said in a statement. The company has been promoting its branded products, which bring better profit margins than bulk meats.
Smithfield earned $223.5 million on sales of $5.9 billion in fiscal 2001. Those numbers are expected to rise this year because of new businesses the company has purchased.
Reach Michael Davis at 446-2599 or email@example.com