Texas (July 13, 2014) Wax Ink has issued a Negative Investment Interest opinion for Seaboard Corporation (AMEX: SEB), based on a recent intrinsic value review that placed fair value for the company between $396-$447.
A Negative Investment Interest opinion (sell) means that the current key performance indicators (KPIs) and associated financial metrics do not favor a position in this stock as an active investment at this time.
The recent close of $2929.00 is approximately 1133% above a fair value buy target for the stock and approximately 499% above a fair value close target for the stock. The recent close is also 00% above/below analysts' twelve-month $00.00 median price target for the stock.
The recent close represents a 4.5% increase in the one-year price of the stock, while year-over-year sales increased 8%, year-over-year earnings decreased 46%, year-over-year debt decreased 7%, and year-over-year free cash flow decreased 47%.
The company paid a dividend of $0.00 which represents a year-over-year dividend decrease of 100%. In December 2012, the company declared and paid a dividend of $12.00 per share on the common stock. The increased amount of the dividend (which has historically been $0.75 per share on a quarterly basis or $3.00 per share on an annual basis) represented a prepayment of the annual 2013, 2014, 2015 and 2016 dividends ($3.00 per share per year). The company does not currently intend to declare any further dividends for the years 2014-2016, and did not declare a dividend in 2013 or 2011. In 2010, the company declared and paid dividends of $9.00 per share on the common stock, which included a prepayment of the annual 2011 and 2012 dividends ($3.00 per share per year).
The stock currently has a trailing twelve-month PE Ratio of 21, and a PEG Ratio of 1.5 basis estimated forward earnings growth of 14.5%.
In the past 52 weeks, share prices have moved between a high of $3119.33 and a low of $2350.00, placing current equilibrium at $2472.68. With the recent close, the stock is trading 6.5% below the 52 week high, 20% above the 52 week low, and 6% above current equilibrium.
The three-month average daily trading volume for this stock is approximately 694 shares and the recent average daily trading volume is approximately 603 shares. There are approximately 902 short interest shares which places the days to cover at 4.90.
Seaboard Corporation. is an agribusiness and transportation company, engaged in the production, processing, and ocean transportation of pork worldwide.
The company's listed competitors include Bunge Limited, Louis Dreyfus Holding BV, and Smithfield Foods, Inc..
Financial information contained herein, was extracted from the company's most recent annual SEC filing for year ending December 31, 2013 and all prices are per share unless otherwise noted.
At this time Wax Ink has no investment position in any company mentioned in this alert. This alert is for use by Accredited Investors as defined under Title 17, CFR §230.500, Regulation D.
Wax Ink is a baseline equity research company not licensed or registered with any government agency focusing on long-term investment opportunities.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.