Tuesday, July 30, 2013

Investopedia: BRF SA Serves Up A Feast For Investors

For reasons completely unknown to me, Investopedia editors chose to change the company name to "BRF SA" instead of Brasil Foods... 

The argument I've made for some time with BRF S.A. (Nasdaq: BRFS) is that this company is on a long-term plan to transform itself from a commodity- and export-driven protein company into a global branded food company like Kraft (Nasdaq:KRFT) or Nestle (Nasdaq:NSRGY). With that, I not only expect significant growth, but significant margin and free cash flow expansion over the next decade. BRF S.A. is by no means cheap according to conventional metrics, but the shares are still slightly undervalued on a cash flow basis and offer investors good exposure to emerging market consumer spending growth.

Continue reading here:
http://www.investopedia.com/stock-analysis/073013/brf-sa-serves-feast-investors-brfs-tsn-hrl-krft-nsrgy.aspx

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