Chicken Companies Choking on Corn

 |  Includes: CALM, CORN, PPC, SAFM, TSN
by: Stephen Rosenman

Stockholders of SAFM, PPC, TSN and CALM have had a terrible time since April. Look at how these stocks have been savaged.

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The likeliest culprit for the horrible action in the chicken and egg producers: the rising price of corn. Corn has climbed from $3.50 to $5.11. Investors remember quite clearly what happened to the chicken companies in 2008 the last time corn soared. Back then, corn reached above $6.50, Pilgrim's Pride went bankrupt, and the whole group cratered.Click to enlarge

Disclosure: No positions