Was usda stepping in to buy dark meat. Traditionally has led to a move up in chicken stocks.
Increased positions in PPC, SAFM and Tsn today. I like the low pe, the low grain costs, the end of avian flu, the monster short interest, and right in the sweet spot of the grilling season. I think we make a move and hopefully PPC catches fire and ignites a short squeeze.
Jim if you shorted before the special dividend of 5.77 you had to pay it. I just added it back to get an apples to apples rough estimate of where the shorts are in this trade. The vast percentage of shorts are underwater on this trade despite the ugly looking chart. Counting the special dividend the stock is actually ahead of where it was when the special dividend was announced.
The bulk of shorts was about 28.50. Add 5.77 to close and we are roughly 31.50 so underwater on biggest bulk of shorts. The tranche shorted after dividend is positive. Waiting for down turn 3 quarters out is super risky. The up cycle has already lasted longer than shirts thought. What if longer? Acquisition or stock buy back likely in next year with monster profits.
Takithom - interesting. If they really wanted to bury the shorts they would have done a buyback of shares with that amount of money. The fact they did a special dividend upstream would allow them to take cash out ( which the street was giving little value to) and let the shorts help them accomplish their goal of driving the stock down. Management has never seemed troubled by this monster short position. Maybe there is a reason for that. What else could JBS buy at this good of a value that they know well?
If they are as shrewd as folks say this has to at least be on the radar. Then they could spin the US operations off later like island says and have the whole enchilada.