Continue reading Smithfield Foods (SFD) Q2 earnings preview

Smithfield Foods (SFD) Q2 earnings preview originally appeared on BloggingStocks on Wed, 09 Dec 2009 13:10:00 EST. Please see our terms for use of feeds.

Wall Street was probably encouraged by something else as well. If you take a look at the actual release, head on down to the statement of cash flows. Last year at this time, Tyson generated $144 million in cash from operations during the six-month period. This year, the company made $407 million from operations. Some nice changes in working capital helped out.

Continue reading Tyson beats estimates, stock rallies -- can you buy now?

Tyson beats estimates, stock rallies -- can you buy now? originally appeared on BloggingStocks on Mon, 04 May 2009 15:30:00 EST. Please see our terms for use of feeds.

Trade idea for Smithfield Foods (SFD) earnings miss originally appeared on BloggingStocks on Thu, 05 Jun 2008 13:20:00 EST. Please see our terms for use of feeds.

Reuters reports that workers at Quality Pork Processors Inc in Austin, MN have contracted a new disease -- symptoms include inflammation of the spinal cord, mild weakness, fatigue, numbness and tingling in the arms and legs. The source of these symptoms appears to be these workers' use of compressed air to blow pork brains out of the skull cavity.

Why is this happening? A doctor has been studying 18 Minnesota patients, all of whom have evidence of nerve involvement, typically affecting the legs. He said tests showed patients had damage to the nerves at the root level near the spinal cord, and at the far reaches of their motor nerves, where the nerves connect with muscle.

Why should investors care about this? It's worth looking at whether any publicly traded pork processors use the same technique that Quality Pork Processors does for blowing out pork brains. One candidate for further study is Smithfield Foods (NYSE: SFD), a global pork processor. So far the pork workers have not sued their employer for the disease. But if the problem becomes more severe and widespread, it could affect pork processor profits.

And that would cause nerve problems for investors as well as workers.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Pig brain spray gets on workers nerves, should make investors nervous originally appeared on BloggingStocks on Thu, 17 Apr 2008 15:10:00 EST. Please see our terms for use of feeds.

Smithfield Foods (NYSE: SFD) is the largest hog producer and pork processor in the world, offering fresh pork, smoked and boiled ham, bacon, sausage, hot dogs and ready-to-eat foods. Products are sold under such brand names as Smithfield, John Morrell, Cumberland Gap, Patrick Cudahy, Cook's Ham and Armour-Eckrich Meats. Smithfield is also the fifth-largest beef processor in the United States. Hormel Foods (NYSE: HRL) and Tyson Foods (NYSE: TSN) are major competitors.

The company surprised the Street late last month when it reported fiscal Q2 EPS of 24 cents and revenues of $3.46 billion. Analysts had been looking for 21 cents and $3.28 billion. Management noted that packaged meat profit margins more than doubled and earnings from international meat processing rose sharply. The SFD price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Continue reading Smithfield Foods (SFD): Share price moving in bullish flag

Smithfield Foods (SFD): Share price moving in bullish flag originally appeared on BloggingStocks on Mon, 10 Dec 2007 16:17:00 EST. Please see our terms for use of feeds.

Smithfield Foods (SFD): While stocks rally, pigs get slaughtered originally appeared on BloggingStocks on Wed, 19 Sep 2007 10:34:00 EST. Please see our terms for use of feeds.

Smithfield's (SFD) hogs run wild originally appeared on BloggingStocks on Thu, 23 Aug 2007 18:33:00 EST. Please see our terms for use of feeds.

I was captivated when I read in yesterday's Wall Street Journal [subscription] that the Chinese government, in response to a growing pork shortage brought about by the country's growing prosperity, was considering tapping into its STRATEGIC PORK RESERVE. Really. Apparently, it has stockpiled frozen pork as well as pigs on the hoof against the day meat prices skyrocket.

After I quit giggling over the image, I began to wonder if our government was doing enough to protect us from similar shortfalls. I know, of course, about our huge strategic petroleum reserve, sufficient to fuel every SUV in the country for a dozen trips to Wal-Mart (NYSE: WMT). But petroleum isn't our only essential resource. Do we have a strategic beer reserve? A strategic disposable diaper reserve? And how about our supply of Starbucks (NASDAQ: SBUX) coffee? Can you imagine the riots if our supply of French roast is cut off for even a day? Don't threaten my freakin' coffee!

Of course, we aren't alone in the world in our dependence on life's essentials. One would think that Norway would have a substantial Strategic Herring Reserve. And where would Italy be without a Strategic Olive Oil and Garlic Supply? I'd guess Monaco has thousands of extra cases of Taittinger put aside, while the Saudis stockpile extra wives. Closer to home, you'd think Canada would stockpile pucks, Mexico tortillas.

If you want to take a flyer that the Chinese pork shortage might force them to shop internationally, you might look at leading U.S. pork producer Smithfield Foods (NYSE: SFD), which is taking over another large producer, Premium Standard.

I have no recommendations for plays in a puck shortage.

Profiting from the Chinese pork shortage originally appeared on BloggingStocks on Wed, 06 Jun 2007 13:15:00 EST. Please see our terms for use of feeds.