Sanderson Farms, Inc. (NASDAQ:SAFM)

CAPS Rating: 4 out of 5

A fully-integrated poultry processing company engaged in the production, processing, marketing and distribution of fresh and frozen chicken products.

Results 1 - 20 of 42 : 1 2 3 Next »

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Member Avatar Jordrok (98.63) Submitted: 5/26/2015 12:10:17 PM : Outperform Start Price: $84.17 SAFM Score: +0.42

Mechanical investing.

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Member Avatar jimhsu (94.53) Submitted: 5/20/2015 11:16:27 PM : Outperform Start Price: $83.20 SAFM Score: +2.44

Conservatively managed poultry company on fire sale due to the avian flu scare and bear raids by shorts.

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Member Avatar elks42 (27.57) Submitted: 4/21/2015 4:02:13 PM : Outperform Start Price: $77.63 SAFM Score: +8.41

This stock has been beat to death by the shorts. According to Factset, it's at 18.7 days to cover with 44.85% of the float shorted. Insiders have been increasing their long positions over the past 6 months, with 11.8% of shares outstanding owned by insiders. If you strip out the Employee Stock Ownership Plan/Trust, you still have 4.9% inside ownership, so insiders have a decent amount of skin in the game. Basically, the shorts are betting that the avian flu jumps from the turkey farms to the chicken farms and has a huge impact on the flock (A very real threat, but right now this thing is trading as if its flocks already had the avian flu).

Using very conservative estimates and the SAFM WACC as my discount rate, I come up with a fair value north of $102 using a DCF. Using analyst estimates as of mid-March, again using the SAFM WACC as the discount rate, I get a FV north of $110.

This is a consumer staple that will continue to be a regular part of the diet of Americans. The company itself is run well and continues to grow. All it will take with the current short interest is one well-known name to take a decent position (Buffett likes staples, but really any big-name investor) and this stock will soar as the shorts scramble to cover. I'm long and will continue to add on any weakness.

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Member Avatar JBear (60.50) Submitted: 3/26/2015 12:24:14 PM : Outperform Start Price: $77.91 SAFM Score: +5.81

Definitely undervalued. A well-run company in a steady business. We will always need chicken, no matter what economy we are in. P/E rate is solid.

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Member Avatar BoomerBull (81.56) Submitted: 2/21/2015 4:26:58 PM : Outperform Start Price: $83.88 SAFM Score: +0.78

No debt, high earnings yield, 0.8 PEG, low P/E, and 30% ROIC. Eat mo' chickin!

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Member Avatar AnsgarJohn (99.26) Submitted: 1/28/2015 4:08:24 PM : Outperform Start Price: $81.84 SAFM Score: -1.97

GARP Peter Lynch Screen.

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Member Avatar Staka (96.59) Submitted: 12/27/2014 12:31:23 PM : Outperform Start Price: $85.14 SAFM Score: -2.02

Positive:
- Reasonable valuation
- Spiking corn prices have held them down but this is exactly what makes a good entry point
- The tailwind of lower energy prices will drive profitablity

Negative:
- Risk of food scares and poor corn harvests
- CEO old and not very healthy

Category: DPVp

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Member Avatar Pumpstick (98.75) Submitted: 10/21/2014 2:25:06 PM : Underperform Start Price: $80.81 SAFM Score: +4.35

No!

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Member Avatar Handworn (51.02) Submitted: 9/14/2014 8:52:39 PM : Outperform Start Price: $87.90 SAFM Score: -9.74

High ROE and almost no debt-- they're doing something right.

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Member Avatar Kenji94 (72.26) Submitted: 9/14/2014 11:11:12 AM : Outperform Start Price: $87.90 SAFM Score: -9.74

Small growth company trading at a discount price.

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Member Avatar asilverp (71.17) Submitted: 8/28/2014 1:31:55 PM : Outperform Start Price: $92.96 SAFM Score: -14.45

statistically speakly, relatively safe.

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Member Avatar racoveanul (84.89) Submitted: 4/12/2014 3:16:56 PM : Outperform Start Price: $76.01 SAFM Score: -4.10

SAFM has an A for financial health and a PEG less than 1 on Morningstar, so it's one of my long picks.

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Member Avatar chris293 (84.93) Submitted: 2/18/2014 1:12:30 PM : Outperform Start Price: $72.59 SAFM Score: +2.06

A well know company.

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Member Avatar stuerenburg (< 20) Submitted: 1/11/2014 3:36:25 AM : Outperform Start Price: $72.49 SAFM Score: +1.80

value

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Member Avatar PlayDumb (93.79) Submitted: 10/4/2010 4:09:56 PM : Outperform Start Price: $39.90 SAFM Score: +28.11

market is negative about short term prospects, but longer term a safe bet

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Member Avatar thebamoor (35.34) Submitted: 6/4/2010 3:53:00 PM : Outperform Start Price: $49.73 SAFM Score: -27.45

SuperSimple

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Member Avatar michaelbon (< 20) Submitted: 8/25/2009 11:04:50 AM : Outperform Start Price: $38.31 SAFM Score: +16.02

Improved market conditions for industry should continue into 2010. Very good 5 yr EPS Growth projection of 9%.
Current PE of 10.5 well below peer group average of 16.4

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Member Avatar oncqueen (72.30) Submitted: 8/28/2008 11:29:09 AM : Outperform Start Price: $31.49 SAFM Score: +100.29

Can't afford steak? " Let them eat chicken."

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Member Avatar davidova (< 20) Submitted: 5/23/2008 7:53:42 AM : Outperform Start Price: $43.44 SAFM Score: +37.15

s

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Member Avatar Windkissed (< 20) Submitted: 4/24/2008 10:30:13 PM : Outperform Start Price: $37.96 SAFM Score: +65.77

Will outperform during the summer and into early fall

Results 1 - 20 of 42 : 1 2 3 Next »

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