"Bird flu? Heck, I'm
declaring it dead!
That show on ABC they did about it? It bombed! It's
vanished from the news pretty much. It's been
crushed. They declared it annihilated in Vietnam and Thailand.
That means I think it's time to grab some chicken!
While you weren't paying any attention, there was a shootout in the
chicken world; one company won. And that co. is Sanderson
Farms (SAFM)!
Everybody wouldn't have benefited if all the chicken co.s cut
production, because that raises price. But, if one co.
decided to increase production, they'd reap all the rewards of high
prices, without having to pay the price of lower production.
That's what SAFM did!
They kept production steady and now I think they can take share with
increasing prices!
All of their birds are raised inside, so they're not exposed to all
those migratory bird problems, that won't be an issue
anywhere. This one is safer, cleaner, better.
SAFM trades at just 6x next year's earnings, when the traditional
multiple trades at 8x or 9x earnings.
I almost never hear a story this good; SAFM's competitors just
surrendered. They did everything they could; they cut
production to make sure SAFM could take share in a market with better
pricing. A story like this doesn't come along every day.
I think that SAFM is close to being picture perfect.
The
bottom line!: You go with the big bird!
You buy SAFM! Now that everyone's all worried about
human-to-human transmission, this man is the last one standing in the
chicken game!"
