I was a poultry farmer from 1966 though recent retirement.
I have never seen such garbage talk about people eating less chicken.
I do recall several instances of outbreaks of a disease called Newcastle Disease when several farms with several million birds were destroyed but folks never stopped eating chicken. I did get higher prices for MY chicken however.
I bought stock in both SAFM and PPC today because these are rare opportunities to utilize the bargains provided by fear mongering to make some good money on these types of stocks.
Reality: Consumption will rise because the restaurant industry is creating thousands of new stores with variations on taste like Pollo Loco (Peruvian Chicken loved by Latin Americans).
With sufficient background in poultry to have written a book on the subject now published around the world AND having been an egg producer & broiler farmer myself...... seeing this ridiculous drop in PPC / SAFM, I bought both PPC and SAFM.
Yes. About 10 billion shares, $90 billion works out to be about $9 per share.
That is to be returned to shareholders via buybacks and dividends.
I suspect there will be a special dividend payment as this transition moves ahead.
1. European companies advantage due to macro economic trends (inflation rates, costs).
2. Superior balance sheet.
3. Misunderstanding that CBI depends only on energy discovery whereas only 5% on this.
4. Strong backlog.
5. Short % of Float (as of Jan 30, 2015)3: 10.40% (shorts become buyers ultimately).