Sign of the times - boneless breast meat on sale at $6.99 at Mad Butcher and $7.99 at the local Pak n Save. You would struggle to buy that at under $10 a year ago.
Noticed at Pak n save in my last two visits chicken drum sticks going cheap at $3.99/kg.
Stats NZ Food Price Index has chicken breasts at multi year lows
Downward trend in price continues
Cant be good for Tegel
Tegel did get a bit of a hospital pass on listing. A price war with Inghams combined with i think both increasing production while feed prices at a low and still at a low i think. Their time will come when the cycle changes but who wants to be holding in the meantime.
Tegel did get a bit of a hospital pass on listing. A price war with Inghams combined with i think both increasing production while feed prices at a low and still at a low i think. Their time will come when the cycle changes but who wants to be holding in the meantime.
Hospital pass — well timed IPO then
But then Claris still owns 45% of Tegel
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
I actually think Tegel represents pretty good value at the moment. A market cap of 320m for a company that has and will be around for a very long time. Sure its underperformed significantly but I think that has now been factored in.
It pays a good dividend which should be sustainable and given the current SP any growth at all would be a bonus as its only an underlying PE of less than 10.
However probably safer to wait until they at least deliver one result that isn't behind market expectation.
Haha - nothing quite like authentic high quality chicken soup with all the lovely ingredients (scallops, crayfish, prawns and mushrooms) to make one feel at peace with the world!
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