Tyson Foods, Inc. (TSN)

Upthumb. Cutting capital spending - short term catalyst. Very good cash flow. High payout. Nominal debt ratio. Good cash on-hand. Not a street favorite.

People will eat at home more in this economy.

i work for this company

good chicken

Food is not going down in price, if anything it is going up. So long as fuel prices do not sky-rocket again I see no reason that this stock will not regain its former level

People need food.

Tyson is an attractive buy. It is a good company with a decent dividend. I would buy at this level and hold for several years. It won't be a quick gainer, but in the long run it will be a good solid investment.

protein is a staple in our diet and Tyson supplies all three forms (chicken, beef and pork) so demand isn't going away. At this writing (11/20/08) TSN enterprise value is $.17 for each dollar of revenue and $.33 for each dollar of book value. Under normal conditions Tysons debit of 2.9 bil or $.107 for each dollar of revenue (.57 debit/equity) isn't out of line. Paying $.06/each dollar of revenue is cheap. Real question is will they make the right decision with regard to production and avoid oversupply problems that could pressure their cash flow.

This is not a particularly good company with crushing debt. However, they are currently in the middle of a play to grind Pilgrim's Pride to a pulp and enforce a permanent cutback in production. Consequently, prices will go up and margins will improve as feed costs have gone down. If they can make it until PPC is forced into chapter 11 (they are diversified and their other businesses are keeping them afloat) without tripping covenant then I think on the other side the chicken returns to profitability and TSN bounces back.

Someone will have to fill Pilgrim's Pride's orders.

Just trying to add a food stock that our kids like to eat while at a decently low price. We'll see.

Just wait until Thanksgiving.

diversification into energy will allow them to maximize profits on
the upcomming culling of livestock herds due to high feed costs,
then capitalize again on price controls due to massive market share.

Meat has been lowered in price in the past couple months. Now is the time to buy when it is low and on the rise again.

This company is overpriced and poorly managed. A bad combination.

Tyson foods is the world's largest processor and marketeer of pork,beef and poultry and annually exports the largest percentage of beef out of the US.It supplies all Yum! Brands chains that use chicken (including KFC and Taco Bell), as well as McDonald's, Burger King, Wendy's, Wal-Mart, Kroger, Costco, IGA, Beef O'Brady's, small restaurant businesses, and prisons.Tyson produces many different products, including Buffalo Wings, Boneless Buffalo Wings, and Chicken nuggets and Tenders. Every week, its 54 chicken plants process 42.5 million chickens, their 13 beef plants process 170,938 cattle, and six pork plants process 347,891 pigs. Their largest meatpacking facility is their beef production plant in Dakota City, Nebraska. Other plants include hatcheries and tanneries.(1)

The world’s total meat supply was 71 million tons in 1961. In 2007, it was estimated to be 284 million tons. Per capita consumption has more than doubled over that period. (In the developing world, it rose twice as fast, doubling in the last 20 years.) World meat consumption is expected to double again by 2050, which one expert, Henning Steinfeld of the United Nations, says is resulting in a “relentless growth in livestock production.(2)

Going forward the falling US dollar will help with meat exports to emerging markets.The world is getting more affluent and the consumption of meat and other protein rich foods will increase going forward.

Better financials with debt reduction(3)

references
(1)wikipedia
http://en.wikipedia.org/wiki/Tyson_Foods

(2)new york times
http://www.nytimes.com/2008/01/27/weekinreview/27bittman.html?pagewanted=1&_r=1

(3)fox
http://www.foxbusiness.com/markets/industries/retail/article/tyson-foods-strategically-positioned-additional-success_485920_7.html

outperform

Tyson Foods is a good choice for overperformance of the market because of the increasing prices of food in both the United States and countries around the world. These prices are partially because of the increased oil prices and transportation of good to raise the animals, but Tyson will still be taking in more revenue.

Poultry production will be in shorter demand with cattle prices falling; however, this company has a low beta and great profitability. Great stock to own long term!