Sadia S.A. (ADR) (SDA)

fogman24 (99.89) Submitted: 3/11/08 12:56 PM : Start Price: $17.08 SDA Score: 40.32

Sadia is one of my favorite stocks right now, one that I personally feel very comfortable adding to. Like all the stocks listed, it has been beaten down over the last couple of months. However, Sadia offers its products in various parts of Latin America, the Middle East, Asia, and Europe, BUT NOT IN THE U.S.

Financially the company is sound. ROE is 25.67%, trailing PE is around 3, Revenue (ttm) is 5 Billion, EBITDA is 592 million, and it's market cap is 1.2 Billion. They have 1.4 Billion in Cash, with 2.18 Billion in debt that is easily being covered by current Cash Flow. Revenue & Earnings are both growing at 25%>, so the company is growing nicely.

Compare it's financial's to Tyson (Ticker: TSN) and I think you'll agree that Sadia is a good deal. Right now you can get this company for less then the cash it has on the balance sheet, it's growing revenue & earnings while it continues to expand into foreign markets, and did I forget to mention it pay's a pretty nice dividend.

Now for the downside. It is a foreign company and Brazil has been very turbulent in the past. Sadia provides mainly poultry products, so any increase in costs or news on bird flu would affect the stock price and consumtion of their product. Of course, if the bird flu virus gets that bad we all will have more to worry about then just stock prices.

I like Sadia at today's prices and feel that with the current US economical downturn this would be one stock that would not be impacted from a business standpoint if we (the US) were to go into a recession, which could take YEARS to turn around. Today's date is 03/11/08, and today's price is 17.95.

Disclaimer: I own shares in this company

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