Pilgrim's Pride Battered
Investment research firm Morningstar has lowered its estimated value for the US's largest chicken producer by volume, Pilgrim's Pride Corp, to $0 per share, down from a previous estimate of $7.50, Reuters report.
The reduction follows news released Monday that rival firm Tyson Foods will not reduce output despite falling profits in the chicken sector. See previous story here
"After taking into account Tyson's recent announcement that it is maintaining production levels, we are changing our fair value estimate for Pilgrim's Pride to $0," Morningstar analyst Ann Gilpin said in a note to clients.
Ms. Gilpin has long had a downer on Pilgrim's see here
Shares in Pilgrim's Pride closed at just 33 cents each Thursday night, a year ago they were almost thirty dollars, that's a drop of almost 99% in the last twelve months.
Now here's a thought. Is the US government going to bail Pilgrim's Pride out? If not, why not? Because they're not part of the financial services industry? Neither are Ford, GM and Chrysler.
According to Wikipedia Pilgrim's Pride employs around 56,000 people, add onto that employees indirectly affected in associated service industries, and that's a lot more people on the dole.
Whats more important for the average unemployed American who has just had his house foreclosed on, something to eat or deciding what colour metalic paint to have on his next SUV?
Is there a line, and if so where has it been drawn?
The reduction follows news released Monday that rival firm Tyson Foods will not reduce output despite falling profits in the chicken sector. See previous story here
"After taking into account Tyson's recent announcement that it is maintaining production levels, we are changing our fair value estimate for Pilgrim's Pride to $0," Morningstar analyst Ann Gilpin said in a note to clients.
Ms. Gilpin has long had a downer on Pilgrim's see here
Shares in Pilgrim's Pride closed at just 33 cents each Thursday night, a year ago they were almost thirty dollars, that's a drop of almost 99% in the last twelve months.
Now here's a thought. Is the US government going to bail Pilgrim's Pride out? If not, why not? Because they're not part of the financial services industry? Neither are Ford, GM and Chrysler.
According to Wikipedia Pilgrim's Pride employs around 56,000 people, add onto that employees indirectly affected in associated service industries, and that's a lot more people on the dole.
Whats more important for the average unemployed American who has just had his house foreclosed on, something to eat or deciding what colour metalic paint to have on his next SUV?
Is there a line, and if so where has it been drawn?
