SAFM ==> The $$$MR. MARKET$$$ Other President's Day Winne

[mrmarket]

IBD Top 100 as of Feb 27, 2004:

% Off Relative
Rank Company Symbol Price High EPS Rtg Strength Rtg
---- ---- ---- ---- ---- ---- ----
1 S S & C Technologies Inc SSNC 50.79 2 99 97
2 Inter Parfums Inc IPAR 28 -13.6 98 96
3 Aluminum Cp Of China Adr ACH 79.9 -5.3 97 96
4 Wilshire State Bank Ca WSBK 25.19 -4.6 97 95
5 Petroleum Dev Corp PETD 28.6 -2.7 96 97
6 Arrhythmia Research Tech HRT 35.95 -25.3 94 99
7 Bio Reference Labs Inc BRLI 18.94 -17.4 98 94
8 Ultra Petroleum Corp UPL 29.16 3.4 98 93
9 Tsakos Energy Navigation TNP 31.1 -2.8 98 92
10 Fremont General Corp FMT 22.45 0 99 90
11 Sanderson Farms Inc SAFM 35.35 -10.2 99 90
12 Middleby Corp MIDD 40.95 -16.2 97 94
13 Deckers Outdoor Corp DECK 26.3 -2.2 89 98
14 Ceradyne Inc CRDN 36.5 -26.7 99 89
15 Telemig Celular Part Ads TMB 40.25 -16.8 99 87
16 First Cash Financial Svs FCFS 33.92 -2.8 93 92
17 William Lyon Homes WLS 82 1.1 92 94
18 Urban Outfitters Inc URBN 43.61 -4.1 92 93
19 Mobile Telesystems Adr MBT 107.25 -1.8 99 85
20 Synaptics Inc SYNA 18.27 -18.5 99 85



SAFM still looking good at number 11...chicken BUCK BUCK$$$

[jiesen]

oops

SAFM got caught with its hand in the chicken feed.

FDA warning:

http://www.fda.gov/foi/warning_letters/g4597d.htm

[jiesen]

wow, who'd have thought!

the chicken farm's weathering this storm the best... only stock here since CHKE to still be in positive territory.

what I just don't get is how SSNC can be taking such a dump, right now.... guess it's all this oil nonsense, but $20??!? PLEASE! will someone tell Wall St. to wake the F#$K up and start buying again?

[jiesen]

alright!

Go SAFM! Will this be our next winner?

[mrmarket]

Reuters
Sanderson Farms earnings more than double
Tuesday May 25, 7:56 am ET


NEW YORK, May 25 (Reuters) - Poultry producer Sanderson Farms Inc. (NasdaqNM:SAFM - News) said on Tuesday quarterly earnings more than doubled as prices for chicken rose amid strong demand.
The Laurel, Mississippi-based company reported net income for its fiscal second quarter ending April 30 rose to $33.4 million, or $1.67 per diluted share, from $12.8 million, or 65 cents per diluted share, a year earlier.

The company also said it expected full-year earnings of $5.35 to $5.85 per share and that sites in several Georgia counties had been selected for construction of new poultry-producing and processing plants.


Shouldn't take too much longer now!

[jiesen]

5.35-5.85?!

SAFM has paid down their debt so that it is a meager 9% of total capitalization. Return on Assets is an amazing 18.7% (vs. industry average 3.7%) while Return on Equity is 30.6% vs. industry average 9.3%. The time has come for all good men to consume chicken. Last year, SAFM made $4.12/share. 2004 will be the year of the chicken, and SAFM will nail $5.15/share as they crack $1 billion in chicken sales. Even at its humble P/E of 14, these earnings will scratch its share price to $72.10/share. There’s only one ANALyst following this stock, so ANALyst coverage is essentially meaningless.
-----------------------------------------------------------------------------------
The company also said it expected full-year earnings of $5.35 to $5.85 per share and that sites in several Georgia counties had been selected for construction of new poultry-producing and processing plants.

Wow! 5.35-5.85 blows away even the mighty $$MM estimate. This is heading to $80! Of course, I'm selling out at $44, $$MM style.

You are HUGE! SAFM is HUGE!
Hooray for Chicken- it's wings and Lakers tonight!

[mrmarket]

Re: 5.35-5.85?!

SAFM has paid down their debt so that it is a meager 9% of total capitalization. Return on Assets is an amazing 18.7% (vs. industry average 3.7%) while Return on Equity is 30.6% vs. industry average 9.3%. The time has come for all good men to consume chicken. Last year, SAFM made $4.12/share. 2004 will be the year of the chicken, and SAFM will nail $5.15/share as they crack $1 billion in chicken sales. Even at its humble P/E of 14, these earnings will scratch its share price to $72.10/share. There’s only one ANALyst following this stock, so ANALyst coverage is essentially meaningless.
-----------------------------------------------------------------------------------
The company also said it expected full-year earnings of $5.35 to $5.85 per share and that sites in several Georgia counties had been selected for construction of new poultry-producing and processing plants.

Wow! 5.35-5.85 blows away even the mighty $$MM estimate. This is heading to $80! Of course, I'm selling out at $44, $$MM style.

You are HUGE! SAFM is HUGE!
Hooray for Chicken- it's wings and Lakers tonight!

Actually the math is kind of confusing since there was a stock split. Anyone want to try the split adjusted calculation??

Any way you look at it, SAFM is incredibly undervalued.

[jiesen]

SAFM - split adjusted numbers

Well, since there was a 3:2 split the recalculated numbers are as follows:

The $$MM entry and exits of 57.34 and 66.25 equate to 38.22 and 44.16 post-split.

Last year's earnings of 4.12/shr pre-split translates to a 2.75/shr post-split.

$$MM's stated 2004 target of 5.15/shr pre-split translates to 3.43 post-split.

Now that SAFM guides 5.35 to 5.85, that comes to a 56-70% blow-out of $$MM's targeted earnings. Chris, you care to comment on how "off" $$MM was in his analysis?

A P/E of 14 puts SAFM at 75-82 with earnings in this range. I dunno about you, but I'm pretty damn glad $$MM pointed me to this beauty.

By the way, the wings were great, as were the Lakers. <burp>

[jiesen]

SOLD!!!

Sold my SAFM for $44, a 15% gain for me.

Thanks, $$MM, for this pick! You are HUUUUUUUUUUGE!

The chicken was good to me...

[jiesen]

woah

maybe a stop at $44 would have been a better choice... oh well, I never met a profit I didn't like.

I hope you slept through this one and get an extra buck out of it, $$MM.
Gettin' HUGEr every day.

[Don]

SOLD

Sold SAFM for $44.50 for a 15.63% gain. Thanks for the pick $$$Mr Market$$$.

[jiesen]

wow

the chicken farm's up another 4 bucks since $44. this stock is on a roll!

[mrmarket]

Re: wow

the chicken farm's up another 4 bucks since $44. this stock is on a roll!

I prefer McChickens on a sesame bun.

[jiesen]

McChicken

the best value you can get for $1 at McD's.

25c hot wings at my local happy hour hole is the best chicken deal I know.

How do they make money off that?!? who cares, 15% rules!

[jiesen]

54!

wow, how about SAFM at 54? how high can this chicken fly- who knew?