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

To: Lazarus who wrote (61243)	8/28/2018 3:16:48 PM
From: E_K_S	Respond to of 78774

Did a 14% add to my DF @ $7.45/share (4.8% dividend). 7.8% undervalued based on 2018 EPS estimates using GN valuation and over 34% undervalued if the 2019 EPS estimates at $0.85/share are correct. Hard to know where earnings normalize to w/ Mexico & Canada dairy tariffs. I did not know how much Dairy Mexico buys specifically cheese. I am betting at w/ (1) new US NAFTA w/ Mexico and (2) The New Farm Bill may/could help the dairy sector and specifically DF. DF has little to no pricing power and is now closing some facilities per last conference call. Therefore, I suspect 2019 Earnings estimates are now high but I still think stock is undervalued. I have a price target of $10/share. I also think dividend is sustainable so 4.8% yield while you wait is good too. Sold some WY to book a small gain and used those proceeds to buy DF. It's a higher net dividend too. Wisconsin dairy farmers hopeful for US-Mexico trade deal MILWAUKEE (AP) — Wisconsin dairy farmers and cheesemakers say they’re hopeful that a new trade deal between the U.S. and Mexico will augment business in a key state export market. The Milwaukee Journal Sentinel reports that the preliminary U.S.-Mexico deal announced Monday by President Donald Trump calls for zero tariffs on dairy and agricultural products. Mexico also has agreed to not restrict market access for commonly named U.S. cheeses. Trump says the tentative trade agreement would replace the North American Free Trade Agreement . Full details of the agreement haven’t yet been released. Wisconsin dairy farmer Brody Stapel says no other country imports more dairy products than Mexico. He says the potential loss of that market has caused anxiety for farmers over the past several months. Mexico and Canada are the state’s biggest trading partners. EKS