Investopedia: Smithfield Gets Its Deal, But From A Surprising Bidder

Investors had been agitating for Smithfield (NYSE:SFD) management to “do something” to increase the value of their shares, and their wishes were answered in spades on Wednesday. The largest pork producer in the U.S. announced that it had accepted a bid to be acquired by China's Shanghui International in an all-cash deal that awards a pretty hefty multiple to this protein producer.

The Deal To Be...
If the deal goes through as announced, Smithfield investors will receive $34 in cash for each share they own. That works out to a 31% premium relative to Tuesday's close and just barely less than the all-time high for the stock.

To read more, please follow the link:
http://www.investopedia.com/stock-analysis/052913/smithfield-get-its-deal-surprising-bidder-sfd-tsn-yum-mcd-seb.aspx

Investopedia: Zhongpin Could Be Hog Heaven For Investors

Although the scandals surrounding small Chinese stocks in 2010 and 2011 never crept as high as the huge companies like Petrochina (NYSE:PTR) or Lenovo (OTCBB:LNVGY.PK), Zhongpin (Nasdaq:HOGS) did come in for closer scrutiny and doubt. Although history suggests investors can never completely trust any company, hog producer Zhongpin may yet be a sound strategy for benefiting from improving standards of living in the PRC.

The Number Four Player in the Protein of Choice  
Zhongpin is the fourth-largest pork processor/packer in China, but holds less than 1% share of the hog slaughter market and the larger players will scarcely familiar to most readers in North America (Shanghui, China Yurun, and People's Food). With the top five producers holding less than 10% share, the Chinese market is a far cry from the highly concentrated U.S. market that is largely dominated by companies like Tyson (NYSE:TSN), Smithfield (Nasdaq:SFD), Seaboard (AMEX:SEB), Swift (owned by Brazil's JBS) and Cargill, where the top four companies have over 60% of the market.

Please read more here:
http://stocks.investopedia.com/stock-analysis/2012/Zhongpin-Could-Be-Hog-Heaven-For-Investors-HOGS-TSN-SFD-SEB0116.aspx

Investopedia: Don't Get Piggish With Smithfield Foods

Protein stocks can be some of the most irritating stocks for an individual to consider. So much of what determines success at companies like Smithfield (NYSE:SFD), Tyson (NYSE:TSN), and Pilgrim's Pride (NYSE:PPC) is out of their control and all but impossible to predict. What's more, successful trading often demands selling when things look great and buying when things are terrible - old advice to be sure, but nevertheless still hard for many investors to follow. 

With Smithfield Foods posting its first full-year profit in a few years, and the stock up nicely relative to the S&P 500 over the last two years, investors might be wise to question whether this is a stock they want to hold for the full cycle or whether it may be time to move on to greener pastures. While protein consumption seems to be on an inexorable climb around the world, agriculture is still unpredictable and protein stocks are still tough candidates for long-term sleep-well-at-night investing.

A Good End To The Year

Smithfield Foods certainly brought home some good results for the end of its fiscal year. Revenue rose more than 7%, as Packaged Meat pushed Pork Processing to a double-digit increase and offset weaker performance in Hog Production. One potential concern comes from the volume figures - across the board volume was weak, as fresh pork volume dropped 9%, packaged meat volume fell 2%, and hog production volume fell 9%.


The full piece can be read for free at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Dont-Get-Piggish-With-Smithfield-Foods-SFD-TSN-CORN-HOGS-OINK-SEB-HRL0620.aspx