I bought 100 share of PPC in my Roth IRA today...$24.74. I then optioned the Sept 2018 $25. for $2.75. Just a general trade for me. Had the extra cash. Much of the US eats chicken. Many ethnic groups will eat it, while many will not eat pork. It can be frozen and sent overseas (Asia). Good PE...Yeah, boring trade. Many years they will take their loses and rebuild infrastructure. Or like this year...float some notes. One thing with this company...The amount of employees. If you have roaring inflation, your union contracts could be in the mix for possible profit/loss margins... I just see a company that will grow as demand grows for the product...Curse you vegans!!
A few years ago, a dividend paying chicken company that had the ticker SAFM was unnecessarily affected by recession in the stock market. I purchased a ton of shares at this time with exactly the same thesis as you. The only thing I would caution you about is the market is overvalued right now and it is likely to correct. Can you time this? No. Also PPC does not seem as strong a company.
I hear you. I had a little over $3,000. sitting there in my Roth IRA...Money market account. Didn't know where to put it. I've owned PPC before and it has done me well. SAFM has strong fundamentals. Just playing "the poor man's chicken"...
Still have some PPC stock...One got called away, another didn't. Over 5 years it's had a high of over $32. with a low of about $15. something. The stock that didn't get called away, is still there. Always think it will get called...Good PE ratio. I've done maybe 3-4 options (covered calls) on it. My current one is for like Jan 21 $25. Make money from the option money (and it's float)...Not in the stock.