JAR Financial Management
Long/short equity, value, special situations, contrarian

Fourth Quarter Call Confirms View On Smithfield

On the day Smithfield Foods (NYSE:SFD) announced they had agreed to be acquired, I was asked by a family member what they should do with their shares. I have had a buy rating on Smithfield since July 19th, 2012 when shares were trading at $18.52. Using various metrics such as price to free cash flow I had estimated a fair value ranging from $26.26 to $34.39. Although Smithfield had reached the lower end of my target range I maintained a buy rating because there were a few catalysts I believed that could drive the stock higher (being acquired was not one of these catalysts). Before answering my family member I wanted to determine if shareholders would approve the

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details