Pilgrim''s Pride Corp (PPC)

[Derekz]

Well, the entire market is pretty crappy right now.

[Derekz]

I might be interested at buying around 5. We will see. The entire market is down.

[Derekz]

Indicators still down. Don't really know where the bottom is yet.

[mu12450]

In terms of production of broilers, Pilgrim’s Pride ranks first in the nation over all other poultry companies with more than 174 million ready-to-cook pounds produced annually as of 2008.

Despite seemingly robust numbers for the company, Pilgrim’s Pride has experienced some financial turbulence in 2010. Though ranked No. 317 on the Fortune 500’s list of largest corporations, the company got a little smaller in January when it eliminated 230 corporate and administrative jobs as part of the company’s sale of 64 percent of its stake to Brazilian-based JBS for a bid of $2.8 billion.

On May 6, Pilgrim’s Pride released its first-quarter earnings, which reported a net loss of $45.5 million. In a stockholder press release, the company listed several factors for the loss, including: restructuring and reorganization costs; a delay in the addition of new further-processed volume which forced the company to sell commodity meat at lower prices; a loss of approximately $11 million related to grain hedges, of which $6 million was mark-to-market on open positions; and lower-than-anticipated market prices for dark meat.

“While I am encouraged by the progress we have made in several areas of our business, our overall performance in the first quarter of fiscal 2010 was below our expectations,” said Don Jackson, Pilgrim’s Pride president and chief executive in a press release.

Pilgrim’s Pride stock closed at $7.23 on Thursday, up 37 cents from the previous day’s trading.

Read more: Times-Georgian - Poultry farming an economic engine for Carroll

[mu12450]

If you find out let me know.

Their plants are running, more being put back on line. Prices holding, exports look good.

[stockme1]

any idea why this stock is going backwards?

[detearing]

I spoke with IR the other day and he told me that with 65% being held by JBS and another 25M shares by Bo, the float is quite low!

I watched the various conferences online via their web site and the first quarter had around a 57M loss due to the previous bk proceedings, which will not be repeated.

We are down currently due to last Falls fixed yearly agreements. This Fall, they will be renegotiated; with hopefully a higher price.

Also, there are some areas of the industry of which they are predicting a 10% increase.

Population is growing! With JBS behind us, I see quite a bit of upside.

I rode TSN up from from the low 5's to low teens; I see PPC has much much more potential - this was in the 30 to 40 range for quite a while - upside goal is 50 for me in 5 years.

[mu12450]

Still here and long. They are in process of bringing back on line 3 of the plants they closed, moving big time into the further processing biz (from process a bird and sell it in a tray pack to process a bird add salt and pepper, and some sauce, cook it, sell a family dinner and make 4 times the profit).

[Apogee24]

Took a flier on this, I got in at .14, lol the day after they went bk. This was at 12.00 very recently. I am still holding.

[AKAPAK]

Have been since

.60

Where do you think you they are going?

[detearing]

Anyone in this one?

[mu12450]

Time to buy, I am.

Pilgrim's knows what they are doing, I'll wait 6 months to sell some at $23, and wait a little longer and sell some at $35 and hold some.

Pilgrim's Pride posts loss, to restart 3 plants
Bob Burgdorfer
CHICAGO
Thu May 6, 2010 2:30pm EDT
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Stocks

Pilgrim's Pride Corporation
PPC.N
$8.66
-2.50-22.40%
12:00am CDT

JBS S.A.
JBSS3.SA
R$ 7.66
-0.32-4.01%
3:29pm CDT

Sanderson Farms Inc
SAFM.O
$53.38
-4.06-7.07%
12:00am CDT
(Reuters) - U.S. chicken producer Pilgrim's Pride Corp (PPC.N) reported a quarterly loss on Thursday as it took longer than expected to rebuild its business out of bankruptcy, sending its shares down 24 percent.

HOT STOCKS

In addition to costs tied to its reorganization, results were hurt by $11 million in losses on grain hedges and a delay in adding production of further-processed chicken, such as marinated or easy-to-cook cuts, which sell at higher prices than fresh chicken.

At the same time, the company, now controlled by Brazil's JBS SA (JBSS3.SA), said it is optimistic for the future and plans to reopen three idled plants over the next two years.

"While I am encouraged by the progress we have made in several areas of our business, our overall performance in the first quarter of fiscal 2010 was below our expectations," Chief Executive Don Jackson said.

Pilgrim's Pride posted a loss of $45.5 million, or 21 cents per share, for the first quarter ended March 28, compared with a year-earlier loss of $58.8 million, or 79 cents per share.

The latest results included restructuring charges and reorganizational costs of $56.5 million, or 16 cents per share.

Revenue declined to $1.64 billion from $1.70 billion a year earlier.

Some of the first quarter's losses were due to a slower-than-expected recovery of business that was lost as it moved through bankruptcy, he said.

But Jackson was upbeat during a call with Wall Street analysts, predicting better second-quarter results and saying that stronger demand merits reopening the three plants.

"The commitment from our customers is there, but it has just taken a bit longer for them to complete the transition away from other suppliers," Jackson said. "All of that volume should be on board before the end of June."

Paul Aho, an economist with the consulting firm Poultry Perspective, said increasing production may be the right move, as forecasts for tight supplies of beef and pork over the next two years should help demand for chicken.

"I think they are doing the right thing," Aho said.

Restarting the three plants would increase Pilgrim's Pride's production by 10 percent in the next two years.

"In our view, the increase (in production) appears relatively in line with likely increase in demand," Kenneth Zaslow, analyst with BMO Capital Markets, said in a research note.

No. 4 chicken producer Sanderson Farms Inc (SAFM.O) is already building a new plant that will be on line next year and has plans for another plant that would be opened in 2012.

Pilgrim's Pride spent 2009 in bankruptcy, exiting in December after closing plants, laying off workers and selling a majority stake to JBS.

The company predicted better results for its second quarter than for the first and said preliminary results show April was profitable.

The improving economy and expected better business at restaurants should help lift chicken prices in the current quarter and later, it said.

The company expects that by June it will recover much of the business it lost during bankruptcy, which should help earnings for that quarter and the next one.

The company's shares were down $2.70 at $8.46 on the New York Stock Exchange. Sanderson fell 5.9 percent and Tyson Foods (TSN.N) 3.9 percent.

(Reporting by Bob Burgdorfer; editing by Michele Gershberg and Gerald E. McCormick)

[mu12450]

Pilgrim's Pride Eats Crow
Carl Gutierrez, 05.06.10, 05:55 PM EDT
Disappointing earnings damage the poultry producer's shares.



Pilgrim's Pride shares plummeted after offering up a disappointing quarter Thursday, and the poultry producer couldn't blame the slide on the widespread shock that hit the market during the afternoon either -- its shares were slumping from the start after it missed Wall Street's expectations, as well as its own.

The company pared its quarterly loss to $45.5 million, or 21 cents per share, from $58.8 million, or 79 cents per share. Sales fell 5.9% to $1.6 billion, below Wall Street expectations of $1.9 billion. The revenue shortfall is significant, as investors, tired of seeing earnings by way of cost-cutting, are anxious to see actual business growth.

"Our overall performance in the first quarter of fiscal 2010 was below our expectations," said Don Jackson, Pilgrim's Pride ( PPC - news - people ) president and chief executive, though he said he fully believes that consumer demand is increasing with the strengthening economy and improving fundamentals.

Shares of Pilgrim's Pride fell 22.4%, or $2.50, to $8.66, in late-afternoon trading. Related firms were trading in the red as well, but by far slimmer margins. Tyson Foods ( TSN - news - people ) fell 4.4% and Sanderson Farms ( SAFM - news - people ) dropped 7.1%.

Pilgrim's Pride filed for bankruptcy protection in late 2008, overcome by weak profits and high debt. Under its reorganization plan, the company sold a 64% stake in the company, worth $800 million, to Brazilian beef giant JBS, the world's biggest meat producer.

Several factors contributed to the latest quarterly loss, including restructuring and reorganization costs, delays that forced the company to sell chicken at lower prices, a loss of approximately $11 million related to grain hedges and lower-than-anticipated market prices for dark meat.

[Chuxster]

I recall when this stock was around 50 cents....WOW is all i can say...

[Apogee24]

Started a new board for PPC. FYI http://investorshub.advfn.com/boards/board.aspx?board_id=17256

[faust357]

Maybe soome of the Baptists will come and run off with them...

[SissyCool]

lol maybe, send money for the poor birds they have no home and there living in the streets

[faust357]

Maybe George Cloony and his Hollywood buddies will put together a TV special to help the poor birds-"Aid for Chickens"....

[SissyCool]

according to news this morning chicken houses in north are colapsing do to heavy snow on roofs, may drive price up.

[mu12450]

Just reposting in case somebody missed it...

Posted by: mu12450 Date: Friday, December 04, 2009 11:39:59 AM
In reply to: Apogee24 who wrote msg# 879 Post # of 930
This is not an "Ongoing Concern" company anymore. I know from experience that during BK they have rewritten/cancelled contracts they felt were not to their best interest. Shut down and sold plants that were not profitable. I would not want to be one of their competitors next year.

Stock price will be, and in my opinion is now, based on profits, earned and projected, not depreciated value of the plants.

Pilgrim's has good people is a good company, now has been bought by a well run well financed company with lots of experience in the protein business and actually will be a good investment beyond $20.

Just my opinion, it's worth what you pay for it.

[mu12450]

For those who thought that 460.61% profit was great last August...

Brazil - Good news for JBS-Swift 08 Feb 2010

Net income at Pilgrim’s Pride Corp. for the first quarter ended Dec. 27, 2009, totaled $33,613,000, equal to 45c per share on the common stock. This compared with a loss of $228,780,000 in the same period a year earlier.
Sales for the quarter were $1,602,734,000, down 15% from $1,876,991,000 a year ago.
“Our financial results have improved dramatically over the past year as we work to create a market-driven company clearly focused on delivering the highest levels of service, selection and value to our customers as efficiently as possible," said Don Jackson, president and chief executive officer. “While we are pleased with the progress we have made, we recognize that there is much more work to be done in positioning Pilgrim’s Pride for sustained, profitable growth. We will continue to focus on opportunities for improving our product mix, expanding our customer base and operating more efficiently.”
On Dec. 28, Pilgrim’s Pride Corp. and six of its subsidiaries emerged from Chapter 11 bankruptcy protection after a 13-month restructuring. Under the terms of the restructuring plan, the reorganized company issued 64% of its common stock to JBS USA Holdings, Inc., Greeley, Colo., in exchange for $800 million in cash.
The transaction made JBS USA the majority shareholder in the restructured company.
As part of the restructuring, Pilgrim’s Pride changed its fiscal year end from the Saturday nearest Sept. 30 of each year to the last Sunday in December each year. The change aligned the company's reporting cycle with the fiscal calendar of JBS USA and resulted in an approximate three-month transition period which began Sept. 27, 2009, and ended Dec. 27, 2009.

1186.59% is better, still long...

[East Texas]

They announced this morning PPC to pay 4.3 millon fine.

[stockme1]

Anyone have any thoughts on where we go from here?

[East Texas]

Thats no joke ,he has quite the spread.

[mu12450]

I've driven by Bo's duplex a couple of times. Takes about 60 seconds (at 65 MPH). Easy to see why the locals call it Cluckingham Palace.

[East Texas]

We have all been there brother,good luck to ya.

[detearing]

Thanks - I held a ton of shares well below a buck. I should have held on the fact that Bo would never let his shares go to waste. I have learned a big lesson - hopefully. I am more in line with Buffett; however, got swayed by the financial folks on Etrade and Fidelity - they have prescripted statements of generating fear of cancellation of BK stock that is quite intimidating.

My lesson: stick to what you believe in, even if it goes against the crowd!

[East Texas]

Detearing good to see ya here. I played in MGM for alittle while and talked to you there. I got in on this play @.78 and looking at getting back in. Mr.BOs place is about 35 miles up the road from here he has a very nice duplex.LOL

[detearing]

I spoke with Investor Relations and he told me that the TA is working on it and it should be completed today. It is a 1 to 1 ratio. It will take probably a day to show up in most accounts, e.g., Etrade.

[mu12450]

Is PPC information showing up on anyone's account. I am using a Schwab account and PGPDQ at yesterdays close is the only Pilgrim's stock showing.

Are we waiting on the new replacement stock to be issued? Anyone know when that might happen?

[detearing]

http://www.reuters.com/article/idUSTRE5BS1Z020091229

[detearing]

Waiting for PGPDQ conversion to PPC.

[AKAPAK]

THX - got it on Schwab, Aturd still lagging

[sfinksi]

Currently (10:15 EST) it's trading at $8.85, day highest $10.49. The new name is PPC

[AKAPAK]

PPC: Anyone got a quote yet?

Pilgrim's Pride and six subsidiaries emerged from Chapter 11 bankruptcy protection following a year-long restructuring. As part of the restructuring, the chicken producer entered into a $1.75 billion exit credit facility with several financial institutions. Shares of the reorganized company will begin trading on the New York Stock Exchange on Tuesday under the symbol PPC.

Of interest, I put in PPC (Atrade) and got this:

Prime Partners China Index CME $PPC.X
The symbol you entered, PPC, changed to $PPC.X

Quess they need to clear the lingering artifact first.

[mu12450]

I think the .63 price being discussed was the last close of PPC back in December of 2008. Should have nothing to do with current value.

0.63 on 12/01/2008Bid
0.00Size
0Ask
0.00Size
0Quote Time/Date (ET)
8:00:02 PM 12/01/2008

[AKAPAK]

You will get 100 shares of PPC for 100 shares of PGPDQ.

The market will set the price.

Review the PRs to help yourself determine what the shares should / might / could be.

I do not see any quotes ons PPC yet (Amteritrade Level II) Anyone have any?

[edev]

Can anyone say whether PPC shares will be worth ABOUT the same as PGPDQ sahres? In other words, if I have 100 PGPDQ sahres, currently worth $840, will I get 100 PPC shares worth just 60 cents?? Or will I get $840 worth of PPC shares?
TIA

[AKAPAK]

Don't know where you got your numbers from, but read below:

CRG Partners Announces Client Pilgrim's Pride Successfully Emerged from Bankruptcy

3:00p ET December 28, 2009 (PR NewsWire)

CRG Partners, a leading corporate turnaround and restructuring consultancy, announced that its client, Pilgrim's Pride Corporation today successfully emerged from protection under Chapter 11 of the United States Bankruptcy Code, fewer than 13 months after filing with the United States Bankruptcy Court for the Northern District of Texas. CRG Partners was hired in November 2008 as the financial and restructuring advisors to Pilgrim's Pride.

"We're thrilled that Pilgrim's Pride has emerged as a stronger, leaner competitor to remain a market leader and that value has been restored to its stakeholders," said William Snyder, managing partner with CRG Partners and chief restructuring officer for Pilgrim's Pride. "In today's economic environment, there are simply fewer traditional plans of reorganization taking place. The streamlined operations and revamped strategy of Pilgrim's Pride exemplifies our ongoing commitment to developing action plans that address the most critical needs of an organization."

Pilgrim's Pride emerged from its restructuring with all creditors receiving 100 percent of allowed claims and equity maintaining over $600 million in value through their 36 percent ownership interest in the reorganized entity. Pilgrim's Pride showed dramatic financial improvement over the last three quarters of fiscal 2009 - the period during which the bulk of its operational restructuring occurred. For that period, the company reported net income of $77.2 million on net sales of $5.2 billion. By comparison, during that same period in fiscal 2008, Pilgrim's Pride lost more than $966 million.

[rbens]

Whats the value of PPC? They have 800 million shares and 400 million revenue. Is the fair value 50 cents?

[edev]

PPC showing as $0.62 or thereabouts. What's happening?????

[detearing]

Looks like 1 to 1. I have no idea what the opening price will be...

[lasernat]

So did they receive free shares on a 1 to 1 or did they receive warrants to buy?

[detearing]

Under the terms of the confirmed plan, all of the shares of the company's common stock outstanding immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganized company.

New symbol is PPC.

[lasernat]

On the daily list it shows PGPDQ being deleted tomorrow

[detearing]

What's being deleted?

12/28/09 12:00 PPC emerges from BK: Form 8-A12B regarding Pilgrim's Pride has been filed with the United States Securities and Exchange Commission. Document can be obtained on the PPC website.

[lasernat]

BEING DELETED TOMORROW

[mu12450]

Brazil - More good news for JBS group24 Dec 2009
JBS SA, the world’s biggest beef producer, said Brazil’s national development bank may buy as much as $2 billion worth of the company’s convertible bonds as part of a plan to finance acquisitions.

BNDES, as the lender is known, committed to buying all the bonds that the company’s shareholders don’t purchase in an offer on the Brazilian market, Sao Paulo-based JBS said today in a regulatory filing. JBS also said its U.S. unit will raise at least $1.5 billion in an initial public offering.

JBS has expanded through about $9 billion of takeovers in the past three years, including the proposed takeover of Pittsburg, Texas-based Pilgrim’s Pride Corp. and Sao Paulo-based Bertin SA.

The 60-year real-denominated bonds may be converted into a 20 percent to 25 percent stake in JBS USA Holdings Inc. BNDES will buy the bonds through its BNDES Participacoes SA unit, JBS said.

JBS SA, the world’s biggest beef producer, jumped 3.9 percent to 9.45 reais after Standard & Poor’s said it may boost the company’s credit rating after it sells $2 billion in convertible bonds to finance two acquisitions.

The world’s biggest beef producer may have its B+ credit rating boosted after it sells $2 billion in convertible bonds to finance two acquisitions, S&P said yesterday. The company remains on CreditWatch with “positive implications,” said Marcelo Schwarz, an analyst at S&P, because of “the expected positive effects of pending transactions on JBS’s business profile.”

Gerdau SA, Latin America’s biggest steelmaker, climbed 5 percent to 29.13 reais. Sales of existing U.S. homes in November rose to the highest level in almost three years, figures from the National Association of Realtors showed today, as first-time buyers rushed to take advantage of a government tax credit and lower prices.



Source: bloomberg

[mu12450]

It will happen, I'm with you.

[detearing]

Wow - if they expand, this will be quite the stock to have. Large institutions will need this in their portfolios after the DQ comes off!!!

Looking forward to next year!