Smithfield Foods, Inc. (NYSE:SFD)

CAPS Rating: 3 out of 5

Hog producer and pork processor in the world and beef processor in the United States. The Company conducts its business through six reporting segments, Pork, Beef, International, Hog Production, Other and Corporate.

Recs

0
Player Avatar Staka (98.56) Submitted: 7/16/2011 12:21:24 PM : Outperform Start Price: $22.00 SFD Score: -8.23

Positive:- Cheap valuation- Q1 better than expected- Recent (small) insider buying- International operations will profit from cheaper dollar and from problems with contaminated meat in JapanNegative:- High debt, but still manageable- Risk of the next food scandal emerging from some corner- They like to make further aquisitions, a big one could dilute existing shares- Uncertain feed costs- A somewhat cyclical business and earnings might be at the cycle topCategory: PV+

Featured Broker Partners


Advertisement