Mon 14 Aug 2006
Chicken producers got slammed last year in the wake of the Avian Bird Flu Health-Crisis. The sales for Sanderson Farms and Tyson Foods all dipped a bit, but it looks like demand could be picking back up as people start going back to chicken.
I like Gold Kist as a smaller player with strong fundamentals and a decent technical position. It looks like a bottom was put in back in April, and there was buying strength even as the broad market turned down in May.
You can see what other companies produce chicken, many are diversified into other food production as well (like Hormel).
August 21st, 2006 at 9:51 am
Apparently I’m not the only one who likes Gold Kist… Pilgrim’s Pride is buying them.
That’s resutling in a 55% bump in trading on 8/21/06.
September 19th, 2006 at 11:36 am
I was reminded of your chicken play when I saw that Smithfield Foods (SFD) is thinking of aquiring Premiun Standard Farms (PORK). SFD would control 30% of the pork market and get tons of pork farms without the hassle of regulation around building new ones. The other white meat perhaps?