Do you think USA chicken sector to outperform market in the financial year 2009?

More analysts are following now they expect profit margin to improve from fourth quarter of the current year. Do you think it is better to sell during 52 weeks high or keep it to take above average returns in the future? I think it is better to wait until next financial year and beyond.

Positive factors:

Next year growth: more than 241%

On Tuesday after the U.S. Agriculture Department forecast that U.S. farmers will harvest the second largest U.S. corn crop ever, which should mean lower feed prices and ample supplies throughout much of 2009.

Growth expected in next 05 years

Falling commodity prices for next 02 years

Investors are putting money in this sector now. On Tuesday Shares of Pilgrim's Pride, the No. 1 chicken producer, went up 6 percent, while Tyson Foods', the No. 2 producer, stock rose nearly 4 percent, and shares of No. 4 producer Sanderson increased 3 percent.

Thanks.

Best Answer

jillybeansisme answered a question in General Market.
583 points

jillybeansisme answered 3 months ago …

The majority of people do not have discretionary spending power as they did years gone by because more of their budget is going to necessities. Necessities include eating; therefore, profits in these industries should continue to improve translating to continued improvement in share price. I always suggest taking at least the initial buy-in and perhaps some profit, but then let the rest of it ride and take more partial profit down the road.

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