Perdigao S.A. (ADR) (PDA)
A food company, with a focus on poultry, pork, beef processed foods and dairy processed products.
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Big company, leader in poultry production and marketing, low production costs, expanding in other markets, developing local (Brazilian) economy, profitability and stock price seriously affected by an stupid decision of a fired Financing Director hedging (it worked negatively) with currency exchanges.
But the core of business is a rock.
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2009 EPS: -.12 p/e 0
2010 EPS: 2.13 p/e 25
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B56T65.70
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Brazil is currently estimated to have a population of 198,739,269…(why the CIA calls a number like this an estimation boggles my mind, but any who). This is to be matched with a birthrate that is equal to 18.43 births/1000 people. Matched with the death rate and immigrant/emigrant rates Brazil has a growth rate of 1.199%.
So now that you know all of that stuff, let me tell you why it is important to Brasil Foods S.A. (PDA). PDA is the single largest domestic producer of food for Brazil. BRF - Brasil Foods S.A., through its subsidiaries, engages in the production and sale of poultry, pork, beef cuts, milk, dairy products, and processed food products in Brazil and internationally. PDA is producing food for a rapidly growing country, and anything that the Brazilians don’t eat gets shipped abroad for increased sales/revenue.
PDA currently has cash reserves around $526 million and a current debt load of $1.3 billion, although this isn’t the greatest thing you have ever read, I believe that this company will begin to make headway into its debt while maintaining this strong cash reserves. In terms of earnings, once again nothing pretty since it lost $1.12/share, but this has been a bad year for earnings globally and the current estimations for the earnings of the last quarter are positive as well as positive earnings estimation for the entire 2009 year. The estimated earnings for 2009 and 2010 are 1.31 and 3.05 respectively, so with this number you are looking at a 232% growth for the next full year.
Outside of this, PDA has currently been a tear. If you look at its charts for the last 6 months there has been steady growth in the share price, so you may want to wait for a pullback, or just jump in right away, but be weary of profit takers who may sell off and lower the price a bit. The company is currently above its 50 day simple moving average and has been so since April 1st, 2009.
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40 - 45 is a strong resistance zone. How much it can go up from here? Expected - at least there should be a short term correction.
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Best of breed. Largest canned meat exporter in the world.
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Brazillian food co that had a nice run to 80% above index. Very solid business. Re-added on the dip.
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Products are in demand
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THE LAND OF HOT STOCKS, MARKETS, & WOMEN .... BUY, BUY, BUY!!!!
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Future of low cost foodstuffs.
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Looking at maybe adding this to my portfolio - I need to broaden my international horizons.
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Food is always going up especially with well managed company.
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People and animals have to eat something, and this company provides just that.
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smartmoney.com--picking commodity stocks.
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Bird flu is less and less of an issue. Company has shown strong results with excelent growth and profitabiliy potential. The local market should also help support health top line.

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