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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: NikhilJog who wrote (48846)	7/20/2012 11:04:38 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78720

ENH is also into crop insurance (~30% of premiums) and of course the stockchart shows it. I think we can expect substantial losses for the crop insureres this year.

To: NikhilJog who wrote (48846)	7/20/2012 12:40:32 PM
From: E_K_S	Read Replies (1) \| Respond to of 78720

I was going to short my one chicken producer Cagle's Inc. (CAGAQ) but I noticed they are already in BK. This is one I have followed for years (over 10 years) and bought when grain prices were at extreme lows. The larger chicken producers have already sold off (like TYN) and are more diversified. Also the management now is more sophisticated than Cagle's Inc. (CAGAQ) and use hedging strategies to reduce their production losses. I think the eventual play will be to buy those companies that have an extreme sell off due to the uncertainty of the drought. It may tale 2-5 months for the impact to be felt through the supply chain. At some point some of these processors and/or value added suppliers might sell off to where there may be a good value "buy" entry point. No hurry but rather now is the time to build up your list of candidate stocks. I was hoping that SEB would sell off but it may take several more months to impact their turkey & pork production units in Colorado. Still, that may not move the needle enough to impact the stock price. My buy in target price is $1,700.00/share. EKS