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Smithfield Foods, Inc. Message Board

  • richmondinvestor richmondinvestor Aug 24, 2001 4:41 PM Flag

    Analyst forecasts for SFD...

    are too low! Look, Q1 had earnings of 1.06, forecast for Q2 is 0.89, if Q3 hits a conservative 1.15 and the Easter quarter hits a conservative 0.90, that's $4.00 per share. The consensus for the year on the Yahoo board is only $3.42. Now add the three or four acquisitions planned for the next few months that must be accretive to earnings to meet SFD policy, you add a few more cents. Using a P/E of only 12, that should translate to a minimum of $48 per share. Realistically, a higher P/E would make more sense. After all, Tyson has a P/E of 26 and they supposedly are the market leader. Look for the new marketing effort involving national cooked brands and the lean generation pork brands to take this stock price to a new level. Been a long time stock holder of this company and watching the transformation of SFD from a high volume/low margin meatpacker to a real food company is simply amazing.