Monday, May 15, 2017

Recent Buy: Tyson Foods and General Mills

(Stacking Tyson Boxes for Mother's Day weekend)


On May 15, 2017, I bought 20 shares of Tyson Foods (TSN) at $58.24 per share and 10 shares of General Mills (GIS) at 56.36 per share for a total of $1,728.38. 

Rationale:
  • Tyson Foods
    • Rough Quarter
      • Transitioning to a new team focused on protein products.
      • Earnings miss from 2 fires at their plants
      • Alleged Collusion with Georgia Docks
      • Bird Flu at one of their farms
      • Snow Storm killing a large part of their beef
    • Quantitative Rationale: 
      • Trading at a Discount
      • 12x PE
      • 1.55% dividend (which is one of it's highest ever)
      • 18% Payout Ratio.
    • Qualitative Rationale:
      • TSN recently bought out Hillshire Brand who owns
        • Jimmy Dean
        • Ball Park
        • Hillshire Farms
        • and much much mother
      • Combined with the fact that I am basically stocking TSN brands all day I might as well own them 
      • Vertical Integration
        • I own the farms
        • I own the grain producer
        • I own the meat company
        • and I own the retailer 
    • Risk
      • Sensitive to gas and grain prices
      • Not sure how the new China deal will affect the US meat producers
      • Low margins. Beef is 5%, pork is 6%, and chicken is 9%. 
      • Just bought out Advance Pierre. Not sure how smoothly this transition is.
  • GIS
    • Because it's still in the buy range.

Forward Dividend: $4037.86 or an increase of $37. Onward to $4,500!




5 comments:

  1. BDI -

    KILLING IT with the purchases, NO DOUBT! Congrats on the pick ups, definitely think you made some nice moves there : )

    -Lanny

    ReplyDelete
    Replies
    1. Hey Lanny thanks for the support. I've been saving up for a large medical bill from my mom but Blue Cross was nice enough to pick up most of the cost. So I'm cramming it back into the market. thanks for visiting

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  2. I always like any staples buy and this is no exception. While I'm very familiar with GIS I have not looked at TSN at all. Thanks for bringing this name to my attention. Keep those buys coming!

    ReplyDelete
    Replies
    1. hey keith, Do you believe in coincidence? Like how I was researching the walmart deli wall and found TSN which somehow magically coincided with its crash?

      Sometimes i wonder if I have the ability to crash stocks just by buying them

      Delete
    2. I better watch out for your next buys :)

      Delete