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I apply a common sense and moral attitude to investing. I haven't been convinced that rapid trading can beat a 'Buy & Hold' approach to the market and manage my portfolio keeping long term results in mind. I believe "Brand" is the trickiest item to evaluate as it is, by definition,... More
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  • Will Pilgrim's find Brazilian Pride? (PGPDQ) 1 comment
    Sep 3, 2009 12:55 PM | about stocks: PPC
     Smart Brief says Pilgrims Pride may be sold to Brazilian meat giant for as much as 2.5 Billion.
    For shareholders such as myself, this is sweet music indeed. The Brazilian deal, if finalized will represent a price 5 times higher than current market value.
    I bought Pilgrim's back in December (@$1.1) thinking the government won't let this food producer go under - the result would be firing thousands of employees.
    This "Obama Play" has proven a wise move (though credit goes to ellkell and other's for bringing the idea up).

    http://lh5​.ggpht.com/​_ZEZbLeS50V​c/Sp_v_fiEzq​I/AAAAAAAAK​iA/tzI46bUR4​Pc/s400/pil​grim-bo1.jpg


    If PGPDQ doesn't get sold, I plan to keep holding this stock. As the economy is being restored, there's no reason Pilgrim's value won't get restored with it.
    If you recall, there was a huge spike in grain prices late last year, which is what threw PGPDQ to the brink of bankruptcy in the first place. 
    The price of grains has since dropped considerably which is why I still like this company going forward.
    Good stuff. I'll be happy to see the acquisition go through and happy if it doesn't.
    Kudos to Clinton Rivers for picking this company up from the dirt. Some gutsy moves on his part have made the difference, no doubt. 
    Guliamo.

    http://www.smart​brief.com/news/gma​/storyDetails.jsp​?issueid=6DA720F5-​AFD5-4D12-AD88-F4​5461232592&copyid=​6664E793-20E8-420F​-AC77-8AF1BA254E50
    Stocks: PPC
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This post has 1 comment:

  •  
    Your math is off I believe. The purchase price includes all the debt; it isn't the price for the equity only.
    2009 Sep 03 04:53 PM Reply
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  1. Will Pilgrim's find Brazilian Pride? (PGPDQ) (1 Comment)
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