Even though eating properly handled and cooked pork products is safe, some Americans and international consumers will still avoid pork, due to the H1N1 flu.
That would typically hurt protein food producers, but Tyson Foods (NYSE: TSN) has alternatives, namely chicken, which is a major reason I'm reiterating my Buy rating for Tyson Foods, first recommended on May 11, 2009, at a price of $12.35.
And when one combines the frugal consumer trend -- more Americans are eating more meals at home, and chicken is a good value -- the scale is tipped in favor of Buy rating for TSN, but do note the tight sell/stop loss. The First Call FY2009/FY2010 EPS estimates for TSN are 22 cents to 98 cents.
Stock Analysis: Tyson Foods is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 50% position in TSN now; then buy another 25% in three months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your TSN position before December 2009. Sell/stop loss if you were to buy shares in this company: $8.30.
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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Reader Comments (Page 1 of 1)
9-14-2009 @ 1:12PM
inteller said...
As long as the family holds all that class A stock this company is a turd and should be avoided like the plague. No stockholder issues can get voted on and the same cronies stay on the board. There is a reason CTRS dumped them earlier in the decade.