The recession is moderating, though growth will not occur in the second halfThe June Beige Book confirmed what I have been saying for weeks: the pace of deterioration has slowed. Five districts said that the "downward trend is showing signs of moderating."Counter-balancing this was the expectation that there will not be "a substantial increase in economic activity" throughout the remainder of the year. Again, this is inline what with the trends I'm drawing from the economic and earnings estimate revision data. Conditions are improving, but we are nowhere near to getting out the woods.On the positive side, signs of improvement were noted in import and export activity, discount retail and lower-priced homes. Though this might sound like good news for Masco (MAS) or Dryships (DRYS), it's important to note that we're still far from a recovery in housing or transportation....

Sanderson Farms (SAFM) is the 4th largest poultry processing company in the U.S. The improved efficiencies at the company's poultry complexes in Georgia and Mississippi, along with the new facility in Waco, Texas, should improve unit operating costs and increase production levels in fiscal 2009.However, grain costs increased substantially in fiscal 2008 resulting in a loss. Even though grain prices have declined, the Hold rating is maintained.Due to the company's volatile earnings and losses reported in fiscal 2006 and 2008, the stock is best valued on a price-to-sales basis. During the last five years, the stock has traded in the range of 0.26 to 0.94 times sales.There is considerable commodity risk involved with the production of chicken products, both on the pricing of end-products and the costs of feed, processing, and storage. With stock currently trading at 0.44 times sales, the target ...

The improved efficiencies at Sanderson Farms, Inc.’s (SAFM) poultry complexes in Georgia and Mississippi, along with the new facility in Waco, Texas, should enhance improve unit operating costs and increase production levels in fiscal 2008. However, grain costs are expected to continue increasing in 2008. As a result, the construction of a new complex in Kinston, North Carolina has been delayed. The Hold rating is maintained.

The company’s new facility, which opened during the fourth quarter of 2007, added 18 percent to the existing capacity. Though construction is currently being delayed, the company plans to build a new feed mill, poultry processing plant, and hatchery in Kinston, North Carolina. The new complex at its full capacity will be equipped to process 6.7 million pounds of dressed poultry meat per week.

Due to the company’s volatile earnings and loss reported in fiscal 2006, the stock is best valued on a price-to-sales basis.

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If you were a chicken you would to, considering Sanderson Farms Inc.’s production output is over 2 billion pounds a year. Sanderson Farms is a producer, processor, marketer, and distributor of fresh and frozen chicken and other prepared food items. Their 2007 sales were over $1B in products sold under the Sanderson Farms brand name.

With headquarters in Laurel, Mississippi, Sanderson Farms Inc. trades on NASDAQ as part of the Meat Products industry. Their markets are in the southeastern, southwestern, and western United States. They sell their products to retailers, distributors, and food operators in these locations. Sanderson Farms operates eight poultry processing complexes situated in Mississippi, Louisiana, Texas, and Georgia.

The company began in 1947 as a general feed and seed business. In 1951, D.R. Sanderson, Sr., D.R. Sanderson, Jr., and Joe Frank Sanderson organized a partnership under the name of “Sanderson Brothers”. In ensuing years, they added poultry production to

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With fertilizer companies and agricultural stocks in general booming due to the development of emerging markets – an interesting story caught my eye. Smithfield Foods (SFD) announces a deal to export 60 million pounds of pork to China by the end of December, due to a shortage there due to disease. From the news reports on Yahoo Finance it appears Smithfield has an agreement with COFCO, a large oils & food importer/exporter in China.