Good news on the swine front:
09/29 2:37P (DJ) +DJ Tyson Foods Up 9%; Analyst Cites Sale Of Pork Ops >TSN
Story 4264 +DJ Pork Ops Sale Ups Tyson's Focus On Chicken Business >TSN
(MORE) DOW JONES NEWS 09-29-99
02:41 PM
Story 4690 DJ Tyson Stk -2: Analyst Says Investors Liked Terms Of Sale
NEW YORK (Dow Jones)--Tyson Foods Inc.'s (TSN) moves to cut fat from its
poultry business and sell its remaining pork operations to Smithfield Foods
Inc. (SFD) was applauded by Wall Streeters, who bid shares of the chicken guru
up as much 13% Wednesday, analysts said.
"It's a very, very good move on Tyson's part," said Merrill Lynch & Co.
analyst Leonard Teitelbaum, who raised his near-term investment opinion on
Tyson to accumulate from neutral. "The company has delivered on all the
promises they made."
Teitelbaum said that by focusing on the chicken business, the company is
well-positioned to reap benefits from the improving industry fundamentals.
The pork business, on the other hand, has been nothing but a burden, with
pricing pressures damping profits in recent years, he said.
Tyson, which has had a short-lived but strong association with pork, with
interests in distribution, sales and hog-raising, has slowly been ridding
itself of that business over the last three years as part of its strategy to
focus entirely on chicken, according to Teitelbaum. To that end, he said, the
company also sold off operations dealing with fish and beef in recent years.
|
