Pilgrim''s Pride Corp (PPC)

[SAE]

The Troubling Mathematics Of The Chicken Business Posted: Sep 12, 2011 03:00 AM by James Brumley [article mentions Pilgrim's Pride, while discussing opinions about this industry...Stockinvestor]


Who would have thought the chicken business could be so complicated? It is, though, and major chicken producers like Pilgrim's Pride (NYSE:PPC), Tyson Foods (NYSE:TSN) and Sanderson Farms (Nasdaq:SAFM) know it all too well. The fine balance between supply, demand and the cost of chicken feed has been upended, and both companies have growing losses to confirm it. (To learn more about the increasing cost of raw materials, read Commodities That Move The Markets. [link below for article])

The bad news is, it's apt to get worse before it gets better.

Stuck in the Middle

Two key forces are taking a toll on chicken farmers. The first one is excessive supply. In 2010, chicken companies managed to not just post strong results, but record-breaking profits. As is so often the case, though, where there's money, so too will there be more competition. And in this case, too much. Frozen chicken inventories were up 13% in June on a year-over-year basis, as supply surged at the same time demand dropped. The supply/demand ratio has gotten so bad that the Department of Agriculture is laying out $40 million to absorb some of the excess supply, which it will turn around and donate to the nation's Feeding America programs.

Simply put, there's just too much chicken out there.

The other underpinning for the industry's woes are burgeoning costs of corn, which is used to feed chickens. Or, it used to be. For the first time in a decade, corn prices exceed wheat prices, and the high costs of corn have been such a burden that chicken farms are now adding wheat to the chicken feed, hoping to offset some costs.

The pros aren't looking for any relief anytime soon on that front, either; corn prices are expected to keep rising into 2012. (If you would like to add corn to your portfolio, see An Overview Of Commodities Trading.)

Fallout

The impact on chicken companies hasn't just been theoretical, either. Sanderson Farms has reversed course between last year and this year, earning a record $6.07 per share in 2010, only to be on pace to post a multi-year record loss of $4.16 per share in 2011.

Pilgrim's Pride's swing from 2010 to 2011 hasn't been quite as dramatic, but the expected per-share loss of $1.81 for this year will be its biggest operating loss in a year. (Pilgrim's loss was actually bigger in 2008, though that was bankruptcy-related.) And, Pilgrim's Pride has been forced to close at least one plant so far.

Even Tyson - which isn't a pure chicken play - has seen its earnings crimped because of higher corn costs. Its chicken unit earned $186 million in Q2 of last year, but only $28 million in Q2 of this year.

No End in Sight?

As was said above, higher corn costs are predicted through 2012, while an abundance of chicken farms will keep the supply unhealthily high. Something will have to give soon, though, and shareholders aren't likely to like either solution.

The first resolution is to do nothing and continue to take losses. The second potential resolution is to cut production - less volume, but hopefully at higher per-piece prices; and more importantly, at a level that can produce profits again.

That's what some of these companies have already initiated. Sanderson is cutting its output by 4%, though the industry generally feels a 5-6% cut in production is needed to make the business viable again. Some feel as much as a 9% cut is necessary.

The problem is, the suggested decline in output assumes the demand will rekindle at higher levels. There's no assurance that the market is earnestly interested in chicken at any feasible price, however. Worse, even if the supply is cut, should corn prices continue to rise as expected, the production cuts may be a moot point. The costs of raising chickens could increase by more than the benefit of a newly limited supply.

Bottom Line

No, it's certainly not a great time to be a chicken investor. (For more on the meat market, check out Learn To Corral The Meat Markets.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!


By James Brumley

James Brumley is a freelance writer and registered investment advisor. He began his career as a broker with a major Wall Street firm, where fundamentals and long-term holding periods were core strategies. After that, he switched gears completely, becoming an analyst at a short-term trading newsletter that focused on technical analysis. He now manages client money using the best of both philosophies. His company, Bluegrass Portfolio Management, offers investors an opportunity to reap superior returns with minimized risk.

http://stocks.investopedia.com/stock-analysis/2011/The-Troubling-Mathematics-Of-The-Chicken-Business-PPC-TSN-SAFM0909.aspx?partner=YahooSA#axzz1XlEswUQr

[chmcnfunds]

Anyone paying attention to PPC. From a technical point of view the chart looks very positive. All indicators buy: RSI, MACD, TRIX, SAR, CCI, Full STO, MFI, and Accum/Dist. Picked up volume yesterday.

PPC - Daily Candlesticks



PPC

[chmcnfunds]

Chinese Demand has Agricultural Stocks Rising (Gxxx, Cxxx, Sxxx, PPC)
Demand from China has Agriculture Stocks Rising

By Jonathan Yates
Published: August 18, 2011 6:02:24 AM PDT


Agricultural stocks such as (other stock info deleted) Pilgrim's Pride (NYSE: PPC) are on the rise due to the demand from China for food products from abroad.

China, with a populace of 1.3 billion, is the largest consumer of agricultural products in the world. As its middle class expands and the diets grow richer, there is a greater demand for foreign produce. This has become particularly acute for corn, as it is needed for sweetners, starch, alcohol, and feed for livestock. Last month, China ordered 21 million bushels of corn from the United States, more than was expected for the entire year. China bought another 2.2 million bushels of U.S. corn earlier in August. This, needless to say, is distorting global grain flows, which will benefit companies that are well positioned, even if they do not export to China. As prices rise due to the demand from China, all consumers around the world will have to pay more.

As a result of China's unprecedented buy and the heat wave in the US this summer, corn prices have nearly doubled over the past year. The corn futures contract for December delivery at the Chicago Board of Trade rose 7.5 cents to settle at $7.275 a bushel. Earlier in the month, corn was abut $6.70 a bushel, down 15% from its June high.

China already buys about one quarter of the US soybean production. This year was the first year that China was a net importer of corn since 1996. This is due to the Chinese population becoming more affluent and eating more pork, chicken and beef. In addition, soft drinks, which have corn-based sweetners, have increased in sales as the volume for Coca-Cola rose 21% in the second quarter of 2011.

These changes have created massive shifts throughout the food chain and pricing apparatus. American food producers and farmers are putting in place infrastructure that will enable large shipments of grains and other products to Asia. The stock prices of Pilgrim's Pride, and (other stock info deleted) reflect this movement. For the week, Pilgrims Pride is up almost 8%.

This sizeable Chinese purchase has, unsuprisingly, not gone unnoticed by American farmers. Ron Litterer, a Greene, Iowa, farmer, states that he is now monitoring China's growth. While he has not decided yet to increase his corn planting, that could easily change if the heavier demand from China is sustained. With production of 1,000 acres of corn and 500 acres of soybeans, Litterer comments that, "It just makes sense to think they will have to depend more and more on [food] imports,"

For now, the amount of Chinese that imports is a small portion of total US exports. But with the Yuan strengthening, this could change rapidaly. According to Michael Swanson, a Wells Fargo & Co. economist, if the Chinese were to consume what Americans do in meat, it would require an additional 24 billion bushels of corn, or about twice what the U.S. produces in a year. "There's not enough grain in the world for them to do that," Mr. Swanson says. "But just moving in the direction is staggering to consider." If this takes place, the share prices of Pilgrim's Pride, and (other stock info deleted) will rise along with the consumption in China and around the world.

Jonathan Yates is a paid contributor of the SmallCap Network. Jonathan Yates's personal holdings should be disclosed above. You can also view SmallCap Network's complete disclaimer and disclosure.
__________________________________________________________
http://www.smallcapnetwork.com/Chinese-Demand-has-Agricultural-Stocks-Rising-GAGA-CALM-SEED-PPC/s/via/3420/article/view/p/mid/1/id/124/

PPC

[chmcnfunds]

Washington swoops to help US poultry producers

By: Dean Best - 17 August 2011 15:32

Quote:
______________________________________________________
In recent days, we've detailed how the US poultry sector is suffering from high input prices and weak consumer demand.

Add soaring feed costs to low demand for poultry products (which has caused an over-supply of chicken and prices to drop) and you have severe pressure on processors' margins.

Even the largest players have felt the pain. Last week, Tyson Foods reported a slump in quarterly profits on the back of sliding earnings from poultry. In the three months to 2 July, Tyson's poultry profits were US$28m. In the same period last year, they were $186m.

Last month, rival processor Pilgrim's Pride said it would close a plant in Dallas, a move that could lead to around 1,000 jobs being lost.

Pilgrim's Pride, which is controlled by Brazilian meat giant JBS, said it needed to improve how it uses its production capacity amid "record-high" feed costs and an over-supply of chicken.

What's more, the announcement came as Pilgrim's Pride reported a $128.1m loss for the second quarter of its financial year.

However, reports in the US say that the US Department of Agriculture is set to make a special purchase of poultry products worth $40m.

According to the Chicago Tribune, the USDA made a similar move last year when it purchased $30m of products. In 2008, it snapped up $42m worth of chicken.

The products are used for the USDA's food assistance programmes but, it is hoped, others far away from America's soup kitchens will feel the benefit.
____________________________________________________________
http://www.just-food.com/the-just-food-blog/washington-swoops-to-help-us-poultry-producers_id2103.aspx

PPC

[chmcnfunds]

Makes me happy since I'm in both (F and PPC). Both have similar charts and a continuation of yesterday would be great for both. Pre-market is down, but European stocks have been rallying.

PPC

[SissyCool]

ppc and ford both had a good day

[chmcnfunds]

Up 11.45% yesterday. Today could be the turn around day if the overall market cooperates. Indicators are improving on the chart possibly suggesting a bottom:

PPC - Daily Candlesticks



PPC

[SAE]

Form 8-K for PILGRIMS PRIDE CORP
--------------------------------------------------------------------------------

8-Aug-2011

Results of Operations and Financial Condition, Financial Statements and Exhib



Item 2.02 Results of Operations and Financial Condition
The information in this Item 2.02 and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

On July 29, 2011 Pilgrim's Pride Corporation reported a net loss of $128.1 million, or $0.60 per share, on net sales of $1.9 billion for the second quarter ended June 26, 2011. For the comparable quarter a year ago, the company reported net earnings of $32.9 million, or $0.15 per share, on total sales of $1.7 billion.



--------------------------------------------------------------------------------





Item 9.01 Financial Statements and Exhibits
The press release is furnished as Exhibit 99.1 to this Form 8-K.

(c) Exhibits


Exhibit
Number Description
99.1 Press Release dated July 29, 2011.



http://biz.yahoo.com/e/110808/ppc8-k.html

[ScovilleUnits]

Sorry, you’re correct of course…PPC

Blame it on Friday afternoon :o)

In any event, at minimum we need stockinvestor777's help to change the symbol in the chart’s properties from PGPDQ, old pre 2010 bankruptcy symbol, to the post bankruptcy symbol PPC so’s at least one chart will be available.

Stockinvestor777, your help please?

Thanks!

[Apogee24]

uh... That would be PPC

[ScovilleUnits]

I’m mostly feeling the need for a KISS…Keeping It Simple Stupid!

Chart in the iBox ….. Simply update the chart symbol from PGPDQ to PCC! and also change the Chart. Not that I don’t love that particular chart, just don’t love it full time. It’s Pincher focused , but hey, it is a good chart overall and at least there is a Chart posted/displayed?

[ chart]stockcharts.com/c-sc/sc?s=PGPDQ&p=D&yr=0&mn=3&dy=0&i=p77998780637&a=156108523&r=474[ /chart] …just change the darn stock symbol.

(I’d prefer a different not so “Pincher” related chart. Maybe one with a few more shorter increments included?)

Whatever! Please put some nice charts into iBox!

Onward Thru the Fog!

[EZmoneyED]

Thank you sir. Sometimes it seems the smallest details can make the biggest difference when investing.

[ScovilleUnits]

Cook it to 160?

[SAE]

Welcome EZmoneyED,

Your post reminds me of Peter Lynch's first book, where he stated on Page 19 that "..before I took over Fidelity Magellan, I was working as a securities analyst at the firm. I knew the textile business from having traveled the country visiting textile plants, calculating profit margins, price/earnings ratios, and the esoterica of warps and woofs. But none of this information was as valuable as Carolyn's (his wife). I didn't find L'eggs in my research, she found it by going to the grocery store. "

Hey guys my wife brought home some chicken from Wal Mart and it was PPC not sure if they are in all the Wal Marts now but I think its a good thing. Wal Mart equals huge revenue.

Please continue to contribute your thoughts and ideas! Stockinvestor

[SAE]

Cargill recalling 36M pounds of ground turkey [Industry news that may or may not help PPC! Any Thoughts? Stockinvestor]

WASHINGTON (AP) — Meat giant Cargill is recalling 36 million pounds of ground turkey linked to a nationwide salmonella outbreak that has killed one person in California and sickened at least 76 others.

Illnesses in the outbreak date back to March and have been reported in 26 states coast to coast.

Cargill said Wednesday that it is recalling fresh and frozen ground turkey products produced at the company's Springdale, Ark., plant from Feb. 20 through Aug. 2 due to possible contamination from the strain of salmonella linked to the illnesses.

Company officials said that all ground turkey production has been suspended at the plant until the company is able to determine the source of the outbreak.

"Given our concern for what has happened, and our desire to do what is right for our consumers and customers, we are voluntarily removing our ground turkey products from the marketplace," said Steve Willardsen, president of Cargill's turkey processing business.

The Minnesota-based company said it was initiating the recall after its own internal investigation, an Agriculture Department investigation and information about the illnesses released by the CDC this week.

All of the packages recalled include the code "Est. P-963" on the label, according to Cargill. The packages were labeled with many different brands, including Cargill's Honeysuckle White.

The CDC said this week that cultures of ground turkey from four retail locations between March 7 and June 27 showed contamination with the same strain of salmonella, though those samples had not been specifically linked to the illnesses. The CDC said preliminary information showed that three of those samples were linked to the same production establishment, but it did not name that plant.

A chart on the CDC's website shows cases have occurred every month since early March, with spikes in May and early June. The latest reported cases were in mid-July, although the CDC said some recent cases may not have been reported yet.

The CDC said the strain is resistant to many commonly prescribed antibiotics, which can make treatment more difficult. The agency said 38 percent of those sickened were hospitalized.

The states with the highest number sickened were Michigan and Ohio, 10 illnesses each, while nine illnesses were reported in Texas. Illinois had seven, California six and Pennsylvania five.

The remaining states have between one and three reported illnesses linked to the outbreak, according to the CDC: Alabama, Arizona, Georgia, Iowa, Indiana, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Mississippi, North Carolina, Nebraska, Nevada, New York, Oklahoma, Oregon, South Dakota, Tennessee and Wisconsin.

The CDC estimates that 50 million Americans each year get sick from food poisoning, including about 3,000 who die. Salmonella causes most of these cases and federal health officials say they've made virtually no progress against it.

Government officials say that even contaminated ground turkey is safe to eat if it is cooked to 165 degrees. But it's also important that raw meat be handled properly before it is cooked and that people wash their hands with soap for at least 20 seconds before and after handling the meat. Turkey and other meats should also be properly refrigerated or frozen and leftovers heated.

The most common symptoms of salmonella are diarrhea, abdominal cramps and fever within eight hours to 72 hours of eating a contaminated product. It can be life-threatening to some with weakened immune systems.

Cargill executive Willardsen said, "Public health and the safety of consumers cannot be compromised."

"It is regrettable that people may have become ill from eating one of our ground turkey products," he said, "and, for anyone who did, we are truly sorry."

___

Online:

CDC info on salmonella in ground turkey: http://www.cdc.gov/salmonella/heidelberg/080111/index.html

___

Find Mary Clare Jalonick on Twitter at http://twitter.com/MCJalonick

http://news.yahoo.com/cargill-recalling-36m-pounds-ground-turkey-234340011.html

[chickenvestor]

PPC TSN and others are victims of their own design. When profits are good they run like a top fuel dragster until they realize they are about to run into a brick wall. Then they can't put the brakes on fast enough. Nobody wanted to be the first to say 'Uncle'. Now there is so much meat in inventory it will be next year with the current cutbacks in place to have any real effect on profitability. Can PPC hold on till then?

[ScovilleUnits]

You didn’t mention the price Wal-Mart was asking for Pilgrim’s Pride Chicken…didn’t mention what chicken parts per/prices, etc, etc?

In any event and for what it’s worth imho PPC is suffering from some major competition at least here in North Texas? I think there are 5 El Rancho’s in what’s collectively known as the Dallas/Ft Worth area?



I’m mostly thinking/wondering out loud that buying PPC at this moment may not be timely? Thinking lets let PPC close both the already announced Dallas, and east TX facility, before taking a take....before taking a PPC position?

Respects and Best Wishes with whatever decision you make.

Scov

[EZmoneyED]

Hey guys my wife brought home some chicken from Wal Mart and it was PPC not sure if they are in all the Wal Marts now but I think its a good thing. Wal Mart equals huge revenue. I may take a starter here tomorrow. I think this could be an easy double if you go long.

[ScovilleUnits]

Pilgrim's Pride to Close Dallas Processing Facility by Late September as Part of Ongoing Efficiency Plan

http://www.knobias.com/story.htm?eid=3.1.3c3f33638e625a91ec03a460c0962ba96ec37e937e540e7835397a0e5826ab8c

??? Me Living in Texas I'm ?/$ Chicken?



Onward Thru the Fog!

[chickenvestor]

Not sure how much one would have to eat before becoming ill. Probably depends on the condition of the host. Personally I felt the initial recall was very limited for the type of contamination they were addressing. I did not see a statement in any of the articles as to where they thought it may have come from but there may be a number of reasons why it was so small. QA is always testing but results take a couple days from the date of the test to grow the culture and verify the contaminant. For that reason it is always better to retain before shipping if you have the storage capacity and the customers can wait until the results are in. In that case, no one but the company has to know and incidents like these are kept out of the mainstream media. It is quite possible the recall was only a small amount of the product that was contaminated and the rest never left the plant.

[SAE]

Pilgrim's Pride Reports Financial Results for Second Quarter of Fiscal 2011

Today : Friday 29 July 2011
Pilgrim's Pride Corporation (NYSE: PPC) today reported a net loss of $128.1 million, or $0.60 per share, on net sales of $1.9 billion for the second quarter ended June 26, 2011. For the comparable quarter a year ago, the company reported net earnings of $32.9 million, or $0.15 per share, on total sales of $1.7 billion.

"Our second-quarter financial results reflect the significant challenges facing our industry this year from the combination of record-high feed costs, weaker-than-expected consumer demand and an oversupply of chicken," said Bill Lovette, president and chief executive officer. "Pilgrim's total feed-ingredient purchases through the first six months of 2011 were more than $400 million higher than a year ago. At this time of year we are usually benefitting from stronger market pricing and increased demand from both foodservice and retail, but to date neither that demand nor pricing has materialized."

Market prices for some key chicken products were down sharply compared to a year ago. Boneless skinless breast meat in the second quarter averaged $1.34 per pound versus $1.61 a year ago, while the market price for wings was $0.77, compared to $1.23/lb. last year. The average market price for leg quarters was $0.46/pound, up $0.10 from a year ago, while Georgia Dock prices stayed essentially flat at $0.865/lb.

At the same time, feed-ingredient costs climbed dramatically. Market prices for corn averaged $6.99 per bushel, up 92.5% from a year ago, while soybean meal averaged $361.15 per ton, a 29.4% increase. Feed ingredient purchases, which represent the largest component of Pilgrim's cost of goods sold, were nearly $255 million higher during the quarter than the year-ago period. The company recognized $5.7 million in net mark-to-market losses related to changes in the fair value of its derivatives during the second quarter, as corn prices dropped sharply in late June as the quarter closed.

Lovette said that Pilgrim's is making structural changes in its book of business in order to share the cost burden from higher grain prices. The company is in discussion with customers to move toward a more viable business model that ties pricing for chicken products closer to the market, such as through a combination of market- and cost-based pricing.

During the second quarter, Pilgrim's sales and volume in foodservice and retail rose slightly. Export demand remained very strong during the quarter, with sales, volume and pricing hitting all-time highs for the period. Year-to-date export sales are up 65% and volumes have climbed 50% -- far outpacing growth in overall U.S. chicken exports.

"Our partnership with JBS USA is helping us enter new markets and increase our penetration in many existing markets," Lovette explained, noting that Pilgrim's share of the U.S. export market for chicken has climbed from 17% to 24%.

He said the company is making good improvement toward its target of $400 million annualized improvement in plant costs and yield improvements by end of 2011. Through the first six months of the year, Pilgrim's had achieved an estimated $270 million in annualized improvement. In addition, Pilgrim's is moving closer to its goal of performing in the top 25% of chicken companies as measured by Agristats, an industry benchmarking service.

"This is a clear sign that we are focused on the right things that can move the needle for us, including improving the mix impact. We need to capture every opportunity to improve our business and maximize the sales mix from each bird that comes through our plants," he said.

In addition, Pilgrim's cost-reduction efforts are continuing, as Selling, General & Administrative (SG&A) expense as a percent of sales was 2.7%, down from 3.7% a year ago. The company also continues to realize synergies from its integration with JBS USA. To date, the two companies have captured an estimated $258 million in combined synergies through areas such as transportation and logistics, purchasing, information technology and insurance.

On June 24, Pilgrim's announced an amendment to the financial covenants in its credit facility. The amendment suspends the existing fixed-charge coverage covenant and the senior secured debt covenant until the fourth quarter of fiscal 2012 and sets certain financial covenant levels at terms more favorable to the company. In support of that agreement, JBS USA provided a $50 million loan to Pilgrim's.

"This is an unprecedented time for our industry," Lovette said. "But industry production cuts are accelerating, with egg sets so far in July declining 6% when compared to a year ago. At the same time, we remain focused on the fundamentals of our business – improving yields and sales mix, reducing costs and operating more efficiently. We have attracted new talent in key leadership positions, and we are showing good improvement in those areas of our business that we can control. We have ample liquidity and the amendment to our financial covenants gives us runway to significantly improve our business and to position Pilgrim's as a much leaner and better managed company for 2012."

For the first six months of fiscal 2011, Pilgrim's reported a net loss of $248.9 million, or $1.16 per share, on sales of $3.8 billion. This compares to a net loss of $12.6 million, or $0.06 per share for the comparable period in 2010. The year-ago results included net reorganization expenses of $18.5 million and administrative restructuring expenses of $52.7 million.

Conference Call Information

A conference call to discuss the company's quarterly results will be held today at 11 a.m. Eastern. To listen live via telephone, call toll-free 800-441-0022, passcode 8443047. International callers should dial 719-325-2431, passcode 8443047. The presentation will be broadcast live over the Internet at http://www.videonewswire.com/event.asp?id=80734. (Please copy and paste the link into the browser.)

Additionally, the company will post a slide presentation on its website at www.pilgrims.com which may be viewed by listeners in connection with today's conference call. The webcast will be available for replay within approximately two hours of the conclusion of the call. A toll-free telephone replay will be available that same day beginning at approximately noon Mountain time by calling 888-203-1112, passcode 8443047. International callers may dial 719-457-0820, passcode 8443047. The replay will be available for 30 days.

About Pilgrim's Pride

Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the company's business plan to achieve desired cost savings and profitability; the ability of the company to achieve the anticipated synergistic gains from the sale of 64% of its common stock to JBS USA Holdings, Inc; the ability of the company to re-open its idled facilities in the manner and on the time schedule planned due to, among other things, the company's dependence on commodity prices and economic conditions; future pricing for feed ingredients and the company's products; additional outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources, particularly in light of Pilgrim's Pride's substantial leverage; restrictions imposed by, and as a result of, Pilgrim's Pride's substantial leverage; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including exports into Russia, the anti-dumping proceeding in Ukraine and the anti-dumping and countervailing duty proceeding in China; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Gary Rhodes

Vice President, Corporate Communications and Investor Relations

[phone]


PILGRIM'S PRIDE CORPORATION

Consolidated Statements of Operations [More financials at link below:]


http://ih.advfn.com/p.php?pid=nmona&article=48622118

[SAE]

Chickenvestor (Good username for this and probably other food industry stock boards. :)),

I agree with you that this is certainly not as large a recall as we have probably both read about over the years and even earlier this year in Europe, but how much would a family or individual really need to consume to be affected? I always think back to the infamous Jack in the Box incident! :( Your statement about this company not addressing the entire problem in the first recall had me go back and re-read the 2nd press release, where I get the impression that they were extensively investigating the source for a week+ and finally found the cause. What are your thoughts on this? I also follow companies that are involved with food safety and animal testing here on Investorshub, eg.BIO and IDXX, which does not have a board. How about you? TIA, Stockinvestor

[SissyCool]

they also had on the radio this morning that a night foreman was crushed by a truck at the loading docks

[chickenvestor]

7000 lbs is about 3 pallets of finished product. Not much in the scope of things but the fact that they didn't address the entire problem in the first recall is troubling.

[SAE]

Pilgrim's Expands Voluntary Recall on Ready-to-Eat Chicken Products Due to Potential Listeria Contamination

Today : Wednesday 27 July 2011
Pilgrim's Pride Corporation (NYSE: PPC) today announced it is expanding last week's voluntary recall of ready-to-eat chicken products due to potential contamination from Listeria Monocytogenes.

The expanded recall involves approximately 7,072 pounds of Pilgrim's Pride Brand Fully Cooked Chicken Breast Nuggets that were shipped to 57 Dollar General stores in the following states: West Virginia, Tennessee, Virginia, Ohio, Kentucky, Indiana, Georgia, Florida and Alabama. The recalled product was sold in two-pound bags and carries the best-by date of June 2, 2012 and UPC number 77013 16224. It was produced in the Pilgrim's plant in Mt. Pleasant, Texas. Pilgrim's is working closely with Dollar General to locate all of the recalled product.

"Food safety is our top priority and we take product recalls very seriously," said Kendra Waldbusser, senior vice president of food safety and quality assurance. "Over the past week we have been conducting a detailed review of our quality assurance processes, work systems and plant-level controls. During that internal examination, we identified a potential issue involving this product. As a precaution to our customers and consumers, we have expanded the recall to this Pilgrim's brand product. We have identified the source of the potential contamination and have taken corrective action. At the same time, we are implementing best practices that include improved product testing at our plants. We are confident that these measures will help ensure the continued quality and safety of our products."

Pilgrim's is not aware of any illnesses or adverse reactions due to the consumption of this product. Anyone who is concerned about an illness should contact a physician. Consumers with questions regarding the recall may contact Pilgrim's toll-free at 800-321-1470.

About Pilgrim's Pride

Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 U.S. states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.

Contact:
Gary Rhodes

Vice President, Corporate Communications & Investor Relations

[phone]



SOURCE Pilgrim's Pride Corporation

http://ih.advfn.com/p.php?pid=nmona&article=48580478&symbol=PPC

[SAE]

Pilgrim's Announces Voluntary Recall on Ready-to-Eat Chicken Products Due to Potential Listeria Contamination

Pilgrim's Pride Corporation (NYSE: PPC) today announced it is voluntarily recalling two products from foodservice distributors due to potential contamination from Listeria Monocytogenes. Neither of the products were shipped directly to grocery stores.

The first product being recalled is 390 pounds of Fully Cooked Grilled Chicken Breast Fillets with Rib Meat distributed through a foodservice distribution center in Columbus, OH, in 30-pound cases. All but five cases (150 pounds) of the product has been located and all of the restaurants that received the product have been contacted. It carries the item code 4250, a code date of 1180 and a use-by date of December 26, 2011. The recalled item was produced in the Pilgrim's plant in Waco, Texas.

The recall also involves approximately 10,850 pounds of Sweet Georgia Brand Fully Cooked Breaded White Chicken Nuggets Shaped Patties from foodservice distributors in Long Valley, NJ; El Paso, Texas, and San Antonio, Texas, in 10-pound cases. The recalled product carries the item code 93804 and a code date of 1147. It was produced in the Pilgrim's plant in Mt. Pleasant, Texas. Pilgrim's has contacted all of the distribution centers that received the recalled product.

Pilgrim's is not aware of any illnesses or adverse reactions due to the consumption of these products. Anyone who is concerned about an illness should contact a physician. Consumers or distributors with questions regarding the recall may contact Pilgrim's toll-free at 800-321-1470.

About Pilgrim's Pride

Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 U.S. states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.

Contact:
Gary Rhodes

Vice President, Corporate Communications & Investor Relations

[phone]



SOURCE Pilgrim's Pride Corporation

http://ih.advfn.com/p.php?pid=nmona&article=48516600

[chmcnfunds]

PPC is now up 9.68% to $5.55.

PPC

[chmcnfunds]

Gaining nicely today -- up 5.53% to $5.34. Chart looking great with the BBs tightening for a possible pop:

PPC - Daily Candlesticks



PPC

[chmcnfunds]

Pilgrim's Pride amends financial covenants

Monday, July 18, 2011

GREELEY, Colo. -- Pilgrim's Pride Corp. has announced that it has completed an agreement with its bank group to amend the financial covenants in its credit facility, effective June 23.

The amendment suspends the existing fixed-charge coverage covenant and the senior secured debt covenant until the fourth quarter of fiscal 2012. The amendment also sets certain financial covenant levels at terms more favorable to the company. Following the suspension period, the financial covenants will be calculated under amended terms of the credit facility, the company reported.

In addition, JBS USA Holdings, the majority equity holder in Pilgrim's, has agreed to provide a $50 million subordinated loan in support of the company. Details regarding the amendment are outlined in the company's Form 8-K filed June 24, with the Securities and Exchange Commission.

"This amendment will provide Pilgrim's with financial flexibility to meet the challenges posed by continued volatility in the grain markets and weak pricing for chicken in the domestic market," said Bill Lovette, Pilgrim's Pride president and CEO. "Since the beginning of the year, we have been focused on strengthening our balance sheet by reducing inventories, improving accounts receivable and keeping a tight rein on capital expenditures. We are making good progress on these initiatives, which have allowed us to maintain strong liquidity, and will continue to work toward those goals. We took this proactive step to demonstrate to our stakeholders that Pilgrim's has the support of our bank group and JBS USA as we work to improve our business and operations."

CoBank ACB and Rabobank are the lead lenders in the bank group that provided the credit facility to Pilgrim's.

For further information, please call Poultry and Egg News at 770-536-2476 to subscribe.
__________________________________________________________________
http://www.poultryandeggnews.com/poultrytimes/business/July2011/238659.shtml

PPC

[chmcnfunds]

Zacks Investment Research Analysts Upgrade Pilgrims Pride Corp (PPC) Shares to “Neutral”

July 7th, 2011 • 0 comments • Filed Under • by ABMN Staff

Zacks Investment Research upgraded shares of Pilgrims Pride Corp (NYSE: PPC) from an “underperform” rating to a “neutral” rating in a research note to investors on Monday.

Shares of Pilgrims Pride Corp opened at 5.02 on Thursday. Pilgrims Pride Corp has a 52 week low of $4.61 and a 52 week high of $8.61. The stock’s 50-day moving average is $4.86 and its 200-day moving average is $6.5. The company has a market cap of $1.077 billion and a price-to-earnings ratio of 82.17.

Pilgrims Pride Corp last announced its quarterly results on Friday, April 29th. The company reported ($0.56) earnings per share (EPS) for the previous quarter, missing the Thomson Reuters consensus estimate of ($0.22) EPS by $0.34. During the same quarter in the prior year, the company posted ($0.21) earnings per share. The company’s quarterly revenue was up 15.20% on a year-over-year basis. On average, analysts predict that Pilgrims Pride Corp will post $-0.09 EPS next quarter.

Pilgrim’s Pride Corporation (Pilgrim’s Pride) is a chicken company in the United States, Mexico and Puerto Rico. The Company’s prepared chicken products meet the needs of some of the customers in the food service industry across the United States. Under the Pilgrim’s Pride brand name, its fresh chicken retail line is sold in the southeastern, central, southwestern and western regions of the United States, throughout Puerto Rico, and in the northern and central regions of Mexico. Additionally, it exports commodity chicken products to 90 countries. As a vertically integrated company, it controls every phase of the production of its products. The Company operates feed mills, hatcheries, processing plants and distribution centers in 14 United States of America states, Puerto Rico and Mexico. In December 2009, Pilgrim’s Pride announced that the Company and six of its subsidiaries have emerged from Chapter 11 bankruptcy protection.

For more information about Zacks Investment Research‘s equity research offerings, visit Zacks.com.

Stay on top of analysts' coverage with American Banking & Market News' daily email newsletter that provides a concise list of analysts' upgrades, analysts' downgrades and analysts' price target changes for each day.Click here to register.
__________________________________________________________________
http://www.americanbankingnews.com/2011/07/07/zacks-investment-research-analysts-upgrade-pilgrims-pride-corp-ppc-shares-to-neutral/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+A

PPC

[chmcnfunds]

Pilgrim's Pride: Will 2012 Be the Year of the Chicken?

By Justin Rohrlich Jul 06, 2011 12:00 pm

After a major restructuring, one money manager believes the country's second-largest poultry producer is ready to run.


As investors got spooked by the equity markets, many sought safety in commodities.

The tremendous run-ups in everything from corn to gold has money manager Shawn Hackett, founder and CEO of Hackett Financial Advisors, a Boynton Beach, Florida firm with a specific focus on commodities, focused on “one of the few undervalued ‘anythings’ in the commodity arena right now – chicken.”

“I’ve been pretty bearish on commodities since the beginning of the year, which was the right place to be, as most have lost 15%-30% of their value,” Hackett tells Minyanville. “We saw a crash in the grains just last week; corn limit down two days in a row.”

But, one of the commodities that Hackett says “clearly never participated at all” in the most recent boom was poultry.

“Generally speaking, those that don’t perform one year tend to be the leaders the following year,” Hackett says. “In 2010, corn, wheat, cotton were the top performers. In 2011, they’ve been the worst. So, from a very simplistic technical point of view, that bodes well for 2012 poultry prices. Beyond that, the industry has suffered from record high feed prices, record losses, sell recommendations from just about every analyst -- typical of a bottom. Right now, we’re seeing feed prices coming down quite dramatically and the conditions seem right for a very buoyant chicken market moving forward.”

Of the major names in chicken, Hackett prefers Pilgrim’s Pride (PPC) to outfits like Tyson Foods (TSN), and Sanderson Farms (SAFM).

“Pilgrim’s Pride is my top pick -- it’s by far the cheapest of the three, they’ve got long-standing relationships with Walmart (WMT), Costco (COST), Wendy’s (WEN), etc., and they’re a much cleaner, much stronger operation since they emerged from bankruptcy,” he explains.

Hackett says that when Brazilian meat processing giant JBS took a post-bankruptcy controlling interest in Pilgrim’s Pride, they brought “much greater financing flexibility with them” as well as operational know-how that should be of tremendous help.

The company filed for bankruptcy in 2008, struggling under the weight of high feed costs, low chicken prices and a heavy debt load before JBS stepped in and Pilgrim’s Pride underwent a top-to-bottom revamp.

"We were not just reshuffling the balance sheet. We actually restructured the company," William Snyder, a managing partner at turnaround firm CRG Partners, who acted as chief restructuring officer at Pilgrim's Pride, told Reuters.

“Pilgrim’s Pride is much better now in terms of feed hedging, which is directly attributable to JBS,” Hackett says. “Plus, with the operating leverage the company has now, they’ll be able to start dramatically paying down their debt load.”

Hackett believes Pilgrim’s Pride stock “should make a big move before the summer’s out.”

“Look where PPC has been over the years, the stock’s been as high as $40 and as low as $4,” Hackett says. “That $4 level may have been the bottom; we saw a brief pullback at $5, so we may have already put in the hard low.”

Interestingly, one of the hurdles standing in Pilgrim’s Pride’s way was a shift from hand-deboning to an automated system, which paradoxically, was far less efficient than performing the task manually.

After switching back to hand-deboning, Pilgrim’s Pride “plans to realize $400 million in savings in 2011, double the amount it projected in the prior quarter,” according to president and CEO Bill Lovette.

As Gary McMurray, principal research engineer and chief of the Food Processing Technology Division at the Food Processing Technology Division of Atlanta's Georgia Tech Research Institute, explains, “each one-percent loss in yield represents $2 to $3 million for a plant.”

There may be hope for automated deboning yet -- McMurray is developing “intelligent deboning” equipment “focused on making the initial incision, cutting from the clavicle to the shoulder joint, through the shoulder joint and down along the scapula,” which is “important to maximizing yield.”

However, whether or not your next breast is cut by man or machine, Hackett maintains that “the old cancer is out of Pilgrim’s Pride now.”

“We should see the fruits of the JBS influence soon, with or without favorable prices,” Hackett says. “Pilgrim’s Pride could be a massive mover over the next five years -- JBS is making the company right again.”

We should see the fruits of the JBS influence in 2012 for sure, with or without favorable prices,” he says. “They’re making the company right again.”
_____________________________________________________________

http://www.minyanville.com/businessmarkets/articles/pilgrims-pride-chicken-prices-poultry-prices/7/6/2011/id/35565

PPC

[chmcnfunds]

Good followup day. Currently up over 5%. Chart improves with much room for growth with resistance at $5.67:

PPC - Daily Candlesticks



Confirmed by Cheat Sheet:

http://www.barchart.com/cheatsheet.php?sym=PPC

PPC

[chmcnfunds]

Been steadily creeping up all day. Now up 3.15%.

Most indicators seem decent:

PPC - Daily Candlesticks



PPC

[SAE]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549




FORM 8-K




CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): June 23, 2011




PILGRIM’S PRIDE CORPORATION

(Exact Name of registrant as specified in its charter)







Delaware 1-9273 75-1285071
(State or other jurisdiction

of incorporation)
(Commission

File Number)
(IRS Employer

Identification No.)



1770 Promontory Circle

Greeley, CO
80634-9038
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: [phone]

Not Applicable

(Former name or former address, if changed since last report.)




Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))









--------------------------------------------------------------------------------
Item 1.01 Entry Into a Material Definitive Agreement.

Amendment to Credit Facility

On June 23, 2011, Pilgrim’s Pride Corporation, a Delaware corporation (the “Company”), and its subsidiaries, To-Ricos, Ltd. and To-Ricos Distribution, Ltd. (together, the “To-Ricos Borrowers”), entered into Amendment No. 3 (the “Amendment”) to the Credit Agreement dated as of December 28, 2009 (as amended, the “Credit Facility”), by and among the Company, the To-Ricos Borrowers and CoBank, ACB, as Administrative Agent and Collateral Agent, and the various financial institutions party thereto (collectively, the “Lenders”).

The Amendment, among other things (1) provides that JBS Holdings USA, Inc. (“JBS”), the Company’s majority stockholder, make a loan in the principal amount of $50.0 million to the Company on a subordinated basis on terms set forth in the Subordinated Loan Agreement dated as of June 23, 2011, between the Company and JBS (the “JBS Subordinated Loan Agreement”) as a condition to the Amendment and (2) provides that JBS, upon the occurrence of certain events, make an additional loan in the principal amount of $50.0 million to the Company on a subordinated basis on the terms set forth in the JBS Subordinated Loan Agreement.

The Amendment further:



• Temporarily suspends the requirement for the Company to comply with the fixed charge coverage ratio and senior secured leverage ratio financial covenants under the Credit Facility for the period beginning on June 26, 2011 and ending on September 23, 2012 (the “Suspension Period”);




• Sets the fixed charge coverage ratio and senior secured leverage ratio financial covenant levels at terms more favorable to the Company upon the expiration of the Suspension Period;




• Modifies the consolidated tangible net worth financial covenant to permit the Company to add subordinated indebtedness of the Company owed to JBS and its affiliates; and




• Reduces the amount of capital expenditures that the Company is permitted to make during certain fiscal years.


JBS Subordinated Loan Agreement

On June 23, 2011, the Company and JBS entered into the JBS Subordinated Loan Agreement, which provides for an aggregate term loan commitment by JBS of $100.0 million (the “Subordinated Term Loans”). As a condition to the Amendment, JBS made an initial Subordinated Term Loan in the principal amount of $50.0 million to the Company on June 23, 2011. In addition, the JBS Subordinated Loan Agreement provides that, upon the occurrence of certain events, JBS will promptly make an additional Subordinated Term Loan in the principal amount of $50.0 million to the Company in accordance with the terms of the JBS Subordinated Loan Agreement. The Subordinated Term Loans mature on June 28, 2015 (the “Maturity Date”) and all principal and accrued but unpaid interest must be repaid on the Maturity Date.

The Company may make cash principal and interest payments on the Subordinated Term Loans so long as under the Credit Facility (1) the senior secured leverage ratio, determined for the four consecutive fiscal quarters most recently ended on or after September 23, 2012, and after giving effect to any Revolving Loans (as defined in the Credit Facility) made in connection with such payments, is less than 4.0:1.0 and (2) no default or event of default has occurred and is continuing immediately before and after giving effect to such payment. In addition, the Company may make prepayments of the Subordinated Term Loans at any time so long as such prepayments are not prohibited by the terms of the Credit Facility and the Senior Indenture (as defined in the JBS Subordinated Loan Agreement).

The proceeds of the borrowings under the JBS Subordinated Loan Agreement may be used to finance the general corporate purposes of the Company. In accordance with the Company’s Amended and Restated



2



--------------------------------------------------------------------------------

Certificate of Incorporation, the JBS Subordinated Loan Agreement and the transactions contemplated by the JBS Subordinated Loan Agreement were reviewed, evaluated and unanimously approved by the Audit Committee of the Board of Directors of the Company.

The foregoing description of the Amendment, the JBS Subordinated Loan Agreement and the transactions contemplated by the Amendment and the JBS Subordinated Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the Amendment and the JBS Subordinated Loan Agreement, which are attached to this Current Report on Form 8-K as Exhibit 10.1 and Exhibit 10.2, respectively, and incorporated herein by reference.



Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information provided in Item 1.01 of this Current Report on Form 8-K under the heading “JBS Subordinated Loan Agreement” is incorporated by reference into this Item 2.03.



Item 9.01 Financial Statements and Exhibits.



(d) Exhibits




Exhibit
Number
Description


10.1 Amendment No. 3 to Credit Agreement dated as of June 23, 2011, among Pilgrim’s Pride Corporation, To-Ricos, Ltd., To-Ricos Distribution, Ltd., the various subsidiaries of Pilgrim’s Pride Corporation party thereto, the various financial institutions party thereto, and Cobank, ACB, as administrative agent for the lenders.

10.2 Subordinated Loan Agreement dated as of June 23, 2011, between Pilgrim’s Pride Corporation and JBS USA Holdings, Inc.



3



--------------------------------------------------------------------------------

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




PILGRIM’S PRIDE CORPORATION

Date: June 24, 2011 By: /s/ Fabio Sandri

Fabio Sandri
Chief Financial Officer



4



--------------------------------------------------------------------------------

EXHIBIT INDEX




Exhibit
Number
Description


10.1 Amendment No. 3 to Credit Agreement dated as of June 23, 2011, among Pilgrim’s Pride Corporation, To-Ricos, Ltd., To-Ricos Distribution, Ltd., the various subsidiaries of Pilgrim’s Pride Corporation party thereto, the various financial institutions party thereto, and Cobank, ACB, as administrative agent for the lenders.

10.2 Subordinated Loan Agreement dated as of June 23, 2011, between Pilgrim’s Pride Corporation and JBS USA Holdings, Inc.

http://ih.advfn.com/p.php?pid=nmona&article=48195771

[chmcnfunds]

Yes, looking good. Now over the 50 DMA and not much resistance until $6.51 the 200 MDA.

Part of an article from Seeking Alpha:
________________________________________________

Pilgrim's Pride (PPC) - The chicken manufacturer has had a great rebound after its last earnings report was released. The stock, which fell to the low $4 range, has come all the way back to above $5, and it would be an excellent buy on a market rebound day. The stock has shown great support on up days with strong volume coming in as the company has announced it is seeing nice projections and switching to cheaper wheat feed. It also has just rallied above $5, which is a key level that provides the ability for mutual funds and institutional traders to buy the stock. The company also recently received a nice upgrade. Things are definitely looking up for the stock, and it seems to have room to grow to $5.50 without much trouble. Pick up on a dip closer to $5 or at the beginning of a strong up day.

Click to enlarge

That's what we are seeing right now.

Disclosure: I am short UNH.
________________________________________________________________
http://seekingalpha.com/article/276417-watchlist-ideas-for-any-market-direction

PPC

[chickenvestor]

It appears they will be in good shape for the duration of the current down cycle. Reduced egg sets and an end to the ethanol subsidy in December and this should be a easy double from here.

[chmcnfunds]

Pilgrim's Pride Announces Agreement With Bank Group to Amend Loan Covenants

GREELEY, Colo., June 24, 2011 /PRNewswire/ --

Pilgrim's Pride Corporation (NYSE: PPC) announced that it has completed an agreement with its bank group to amend the financial covenants in its credit facility, effective yesterday.
The amendment suspends the existing fixed-charge coverage covenant and the senior secured debt covenant until the fourth quarter of fiscal 2012. The amendment also sets certain financial covenant levels at terms more favorable to the company. Following the suspension period, the financial covenants will be calculated under amended terms of the credit facility. In addition, JBS USA Holdings, the majority equity holder in Pilgrim's, has agreed to provide a $50 million subordinated loan in support of the company. Details regarding the amendment are outlined in the company's Form 8-K filed today with the Securities and Exchange Commission.

"This amendment will provide Pilgrim's with financial flexibility to meet the challenges posed by continued volatility in the grain markets and weak pricing for chicken in the domestic market," said Bill Lovette, president and chief executive officer. "Since the beginning of the year, we have been focused on strengthening our balance sheet by reducing inventories, improving accounts receivable and keeping a tight rein on capital expenditures. We are making good progress on these initiatives, which have allowed us to maintain strong liquidity, and will continue to work toward those goals. We took this proactive step to demonstrate to our stakeholders that Pilgrim's has the support of our bank group and JBS USA as we work to improve our business and operations."

CoBank ACB and Rabobank are the lead lenders in the bank group that provided the credit facility to Pilgrim's.

Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the company's business plan to achieve desired cost savings and profitability; the ability of the company to achieve the anticipated synergistic gains from the sale of 64% of its common stock to JBS USA Holdings, Inc; the ability of the company to re-open its idled facilities in the manner and on the time schedule planned due to, among other things, the company's dependence on commodity prices and economic conditions; future pricing for feed ingredients and the company's products; additional outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources, particularly in light of Pilgrim's Pride's substantial leverage; restrictions imposed by, and as a result of, Pilgrim's Pride's substantial leverage; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including exports into Russia, the anti-dumping proceeding in Ukraine and the anti-dumping and countervailing duty proceeding in China; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
About Pilgrim's Pride
Pilgrim's employs approximately 42,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors. For more information, please visit http://www.pilgrims.com.
Contact: Gary Rhodes
Vice President, Corporate Communications & Investor Relations
[phone]
SOURCE Pilgrim's Pride Corporation
Back to top
RELATED LINKS
http://www.pilgrimspride.com
___________________________________________________________________
http://www.prnewswire.com/news-releases/pilgrims-pride-announces-agreement-with-bank-group-to-amend-loan-covenants-124482913.html

PM response good --- up nearly 3%

PPC

[chmcnfunds]

Technicals on the chart look very good. Just need to break through the 50 DMA of $5.48 and there is plenty of room upward:

PPC - Daily Candlesticks



PPC

[SissyCool]

i made good money on this one and i know i will again real soon but the drought this year in the south and west is going to hurt there production cost. good to see they got there corn already in storage must have bought it last year

[chmcnfunds]

Equities research analysts at BB&T (NYSE: BBT) upgraded shares of Pilgrims Pride Corp (NYSE: PPC) from a "hold" rating to a "buy" rating in a research note to investors on Wednesday.

Shares of Pilgrims Pride Corp traded up 2.36% during mid-day trading on Thursday, hitting $4.7801. Pilgrims Pride Corp has a 52 week low of $4.61 and a 52 week high of $8.61. The stock's 50-day moving average is $4.96 and its 200-day moving average is $6.6. The company has a market cap of $1.025 billion and a price-to-earnings ratio of 77.83.

Pilgrims Pride Corp last announced its quarterly results on Friday, April 29th. The company reported ($0.56) earnings per share (EPS) for the previous quarter, missing the Thomson Reuters consensus estimate of ($0.22) EPS by $0.34. During the same quarter in the prior year, the company posted ($0.21) earnings per share. The company's quarterly revenue was up 15.20% on a year-over-year basis. On average, analysts predict that Pilgrims Pride Corp will post $-0.07 EPS next quarter.

Pilgrim's Pride Corporation (Pilgrim's Pride) is a chicken company in the United States, Mexico and Puerto Rico. The Company's prepared chicken products meet the needs of some of the customers in the food service industry across the United States. Under the Pilgrim's Pride brand name, its fresh chicken retail line is sold in the southeastern, central, southwestern and western regions of the United States, throughout Puerto Rico, and in the northern and central regions of Mexico. Additionally, it exports commodity chicken products to 90 countries. As a vertically integrated company, it controls every phase of the production of its products. The Company operates feed mills, hatcheries, processing plants and distribution centers in 14 United States of America states, Puerto Rico and Mexico. In December 2009, Pilgrim's Pride announced that the Company and six of its subsidiaries have emerged from Chapter 11 bankruptcy protection.

Stay on top of analysts' coverage with American Banking & Market News' daily email newsletter that provides a concise list of analysts' upgrades, analysts' downgrades and analysts' price target changes for each day.Click here to register
______________________________________________________________
http://www.newsystocks.com/News/4098160/bb-t-bbt-analysts-upgrade-pilgrims-pride-corp-ppc-shares-to-buy

PPC

[chmcnfunds]

June 21, 2011, 5:07 p.m. EDT
Pilgrim's Pride sees chicken supplies falling

CHICAGO -(MarketWatch)- Pilgrim's Pride Corp.'s PPC +5.18% chief executive acknowledged Tuesday that worries the company would violate its debt covenants with lenders has weighed on company's stock recently, but said the poultry producer doesn't expect any liquidity problems this year.

Chief Executive Bill Lovette said the company's banks are "comfortable" with its strategy and added that JBS SA , the Brazilian meat company that holds two thirds of Pilgrim's Pride, can, if needed, lend up to $100 million that could serve as a "backstop" for the company.

The stock has fallen by more than a third this year and tumbled earlier this month to a 52-week low. Asked about the decline in a presentation to investors, Lovette said he has gotten many questions about the health of the poultry industry in general and about whether Pilgrim's Pride would violate its debt covenants.

"Some have assumed we would, but we don't believe that's the case," he said.

Moody's Investors Service recently revised the company's outlook from to stable from positive, saying that if chicken prices don't improve, the company would likely have to amend its debt covenants in the latter half of the year.

Pilgrim's, which was forced into bankruptcy in 2008 by soaring feed costs, has faced similar pressures this year, along with the rest of the poultry industry.

The industry as a whole hasn't been profitable any week this year, Lovette said.

The company's feed costs rose $188 million in the first quarter from a year ago. Lovette said the company has already purchased all the corn it will need this year.

Analysts say the industry's fortunes won't improve significantly until production starts to fall. While supplies in storage remain high, Lovette noted, the number of eggs set in incubators--a sign of future supplies--has fallen the past several weeks, and by the fourth quarter the numbers could be declining by 4%-6%.

Stubbornly high supplies have kept chicken prices from rallying despite record-high beef and pork prices, which some in the industry were hoping would compel consumers to buy cheaper chicken.

Lovette said he was surprised chicken prices hadn't risen, adding that it indicated a "fundamental lack of demand in all proteins."

Pilgrim's stock rallied during Mr. Lovette's presentation. It was recently up 6.1% at %4.71 a share.
_________________________________________________________________
http://www.marketwatch.com/story/pilgrims-pride-sees-chicken-supplies-falling-2011-06-21-17760

PPC

[chmcnfunds]

Up over 6%. CEO announces does not expect liquidity problems according to Dow Jones-- no links yet.

PPC

[k_trader]

Was a good run today, I am out @ 4.66 daily chart is showing major resistance on center BB right now (around 4.61) with a hanging man candle looking bearish to me.

I suspect that Monday we might see the start of another pullback as it looks like our pincher play is failing on the center BB which is quite common.

I will let this one take a breather and possibly reload if it does indeed continue to retrace.

Good luck to you.

[chmcnfunds]

Looks like we may get there -- now $4.57. I see $4.66 and then $5.04 as the resistances:

PPC - Daily Candlesticks



PPC

[chmcnfunds]

BarChart has support higher at $4.11:

http://www.barchart.com/cheatsheet.php?sym=PPC

Other charting looks positive and also suggests maybe higher support:
PPC - Daily Candlesticks



Seems could easily run to $4.40 to 4.60 if the market remains green,

PPC

[RonnieD]

chart says first support @ 4.06
there is significant value here for the
patient investor, 3rd largest chicken slaughtering
operation in the US, majority Brazilian-owned.
Looking for possible entry, although I'm generally
short this market in other places.

If PPC can improve their margins, stock has
a lot of earnings potential. I am unsure how
much feed prices are cutting in to margin.
Feed prices should be on the way down, with the
dollar strengthening.

Stock is well protected, well positioned,
should be safe pretty soon at support.

[k_trader]

Pinch play in is effect, today confirms as we broke key resistance levels. Looks for 4.80's by EOW. I predict 6.50's by mid August.

GLTU.

[chmcnfunds]

PPC setting up nicely as long as the overall market stays green:

PPC - Daily Candlesticks



PPC

[chmcnfunds]

Thanks for the "pinch" info -- I'll try to learn more. My simple chart suggests bottom has been found. Just want the PSAR to flip.

Also, we have broken though 1st ($4.26) and 2nd ($4.30) resistances as noted on BarChart:

http://www.barchart.com/cheatsheet.php?sym=PPC

Could fly!

PPC

[k_trader]

I think we have found the bottom. I can confirm that the TRIX 3,3 and Full STO have crossed and upticking, also MACD is ready to cross as well. Looks like we are well into oversold territory, this is is ready for a major price correction IMO.

The only thing remaing for final confirmation would be the +DI to start upticking for our pincher and the PPO and Full STO (thick blue lines) to begin to separate. When those lines merge like you see below, this is known as a 'pinch'.



If you want some more info on the pincher there is some good information here on ihub.

http://investorshub.advfn.com/boards/board.aspx?board_id=10585

GLTU.