Corn prices 8% lower, chicken prices (whole bird) 2% higher, production 15% higher (with new plant), improved operational efficiencies. 20% compound annual revenue growth rate for the past 5 years. PE of 5. 30% short ratio. All looks bullish for me. What am I missing? Corn prices remain under pressure. China may lift bird flu embargo at some point. Special dividend and dividend increase likely. Tyson not increasing production but buying chicken on the open market. And perhaps 5% of the float bought back this year. Add it all up and SAFM is going to post another solid quarter and year.
2012-13 $6 bushel. 2014 $4.11 per bushel. This year $3.79 per bushel. Chicken pricing remains firm. SAFM production increased by 15% with strong margins. No debt. Increasing chicken consumption. PE of 5. The future remains bright. Self funded debt free growth.
FB is unique. I don't think there is anything like them. They may one day displace Apple as the largest market cap. I'm not selling even though I bought trading shares in the $80s. Average price in the $30s with some shares priced at $18. Not selling.
I did terminate my personal FB account. Too much time wasted. Peace.
"Lampkin Butts, president and chief operating officer of Sanderson Farms Inc., has been appointed to the board of directors of the Federal Reserve Bank of Atlanta’s New Orleans Branch. Butts’ term ends Dec. 31, 2017. He is filling an unexpired term.
Butts has served as president and chief operating officer of Sanderson Farms since 2004. He has been with the company since 1973.
Butts serves as a board member of the Mississippi World Trade Center and the National Chicken Council. He is a former director of the Mississippi Poultry Association, the Southeastern Poultry and Egg Association, the Association for Excellence in Education and the United Way of the Pine Belt.
Butts received his bachelor’s degree in marketing and sales management from the University of Mississippi."
Although share buyback smart these deflated prices are very attractive and accretive to earnings they will not shake off the shorts. Having a small float is part of the problem. Low volume makes it easy to control trading. SAFM instead needs to funnel more $ to investors making shorts pay a hefty price for dividends. And I'm not asking for massive returns, a 1% dividend is not going to attract income investors and it won't stop the shorts.
SAFM is very unloved. Not many people are willing to go against the trend. I'm bullish on SAFM but I'm not able to reverse this slide myself. Waiting for some positive confirmation of a bottom.
So, SAFM has retired 1,000,000 shares this year? They just gave the EPS a 5% increase. Joe Sanderson wouldn't be spending the company's money if the business weren't doing well.
I hope so. Would love to be able to buy at $50. When you are a buyer of stocks the lower the price the better the value.
Joe Sanderson owns 750,000 shares. Insiders own less than 10% of shares. Joe Sanderson can't control the price per share. A $1 billion market cap stock can't compete against a $10 billion hedge fund. All Joe can do is focus on what he can control, making more chicken for a world with ever increasing need for protein.
This is a game of patience. Buyout? China ending influenza boycott. Well hedged corn costs. Good management. How low will it go? I don't know. But I'm not worried. I'll buy lower and sell the more expensive stuff for tax loss.
RPkol44, I've been a Soda investor almost since the IPO. In the early days management was hitting on all cylinders and driving growth and excitement. It is only in the past few years they haven't been able to grow the business. I remain an investor as others do despite management failings because of the potential of the product and market size. New management and Pepsi collaboration may help Soda to reach new heights. Meanwhile, Birnbaum has lost his mojo. I am a Buffett buy and hold investor and follow Buffett's number one rule of never selling a stock. So, despite management failing, that is in the past and I am holding until future potential is realized. The game isn't over yet.
I think Daniel has made some very strategic errors in running Sodastream. His focus on the manufacturing plant in Israel and the expense associated with it vs outsourcing production to a less expensive location is truly onerous. In order for Sodastream to succeed it must be one thing above all else, a marketing organization. The lack of a cohesive marketing message this late in the game is a sign of failed leadership.
I still hold out hope despite my disappointment and frustration that Pesi will come on board and rescue Soda from current management with a cohesive marketing direction. Ugh. Still holding my nose with this dog of a stock.