For those holding PPC through the halt: Pilgrim's Pride Trading Halted After Plunging a Record 38% By Choy Leng Yeong Sept. 24 (Bloomberg) -- Pilgrim's Pride Corp., the biggest U.S. chicken producer, plunged 38 percent, the most ever, before trading was halted on the New York Stock Exchange. Pilgrim's Pride tumbled $3.90 to $6.36 at 3:28 p.m. in New York before trading stopped. That was the biggest decline since the company went public in November 1986. Company spokesman Ray Atkinson couldn't be reached for comment. ``The stock decline is based on concerns they're going to trigger some of their debt covenants, and they may have difficulty getting waivers in this credit environment,'' Heather Jones, a BB&T Capital Markets analyst, said in a telephone interview. Pilgrim's Pride had $588.4 million available to borrow from two credit lines as of June 28, according to a filing with the Securities and Exchange Commission. To avoid violating its credit agreements, the company is required to keep various measures of creditworthiness above set levels. In April, those covenants were adjusted to levels Pilgrim's Pride said ``it can comply with in the near-term despite the current economic issues facing the chicken industry,'' according to the July SEC filing.
Save a cow !!! eat a chicken !!! ok, yes I do own some shares that was halted, but eating a chicken is the American thing to do in trouble times. In all my years of trading this is a first for me. Will be interesting to see what this opens up at tomorrow. Hopefully higher
I believe passage of the $700 billion dollar "Economic Revival Program" should be contingent solely upon the following mandate: Every chicken-loving American must to do his/her patriotic duty and purchase at least 361.0675 shares of PPC in the morning! (This figure is based upon the $2300 cost of the bailout per man, woman, and child living in the United States divided by the last PPC share price traded.) Sincerely, The Vegetarian
I'm wondering if this is a rare buy right now. PPC is one of the largest producers in the world. All poultry producers got dinged pretty hard because of feed price (corn). Sanderson Farms, PPC, Tyson - all slaughtered right now. Chicken isn't exactly discretionary. It's pound-for-pound of feed a higher yielding livestock than hogs or cattle.
Could be if it opens a lot lower, I own this stock but I cant say I am overly impressed with the press release today. On the other hand my gut says the banks offering the credit lines are not going to pull the rug out unless they think things are not going to improve at some point in the future. I would not say that they are too big to fail but I will say that being as big as they are means they have the best chance to weather this storm and as others do fail they will be in a good position to take advantage of the upswing.
Now trading in pre market in the 3-4 range. I started buying more as the weakest hands panic out at the first chance. saw some prints at $3 right at the start and now continues to move off that low good chance to get in at a (maybe) great price. I would not recommend buying heavy but for your high risk money this appears to be solid