Protein production is a tough, low-margin business. Like most other
tough, low margin businesses, it's also difficult to build real
economic moats and create long-term shareholder value. So while
Sanderson Farms (Nasdaq:
SAFM)
deserves credit for a decent quarter during challenging times,
investors would likely do well to regard this name as more of a trading
opportunity than a long-term core holding.
Read more here:
http://www.investopedia.com/articles/active-trading/12/sanderson-farms-ok-this-quarter-but-long-term-value-may-be-elusive.asp
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