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Stock Market & Financial Investment News

News Breaks
June 6, 2014
12:48 EDTHSH, TSN, PPCTyson Foods drops after analyst warns deal could be short-term negative
Shares of meat producer Tyson Foods (TSN) are falling after BB&T downgraded the stock to Hold from Buy. The company will likely win the bidding war for Hillshire Foods (HSH), but the deal may not be good for Tyson's shareholders in the short-term, BB&T wrote. WHAT'S NEW: The bids for Hillshire have become "somewhat lofty," BB&T analyst Brett Hundley wrote in a note to investors earlier today. As a result, the deal may not be beneficial for Tyson from a financial perspective in the short-term, the analyst warned. After Pilgrim's Pride (PPC) raised its bid for Hillshire to $55 per share, Tyson's could respond with a $60 per share bid, Hundley stated. If Tyson funds a takeover at that price with debt, it would risk ruining its investment grade credit rating, according to Hundley. Alternatively, the company could issue new shares and maintain its investment grade credit rating, according to the analyst. In the latter scenario, Tyson's stock would only be worth about $47 per share, creating an unattractive risk/reward ratio, Hundley contended. Meanwhile, the chicken market is probably peaking and the profit margins on red meat are challenged, the analyst added. PRICE ACTION: In early afternoon trading, Tyson fell 2% to $40, while Hillshire was flat near $58.58.
News For TSN;HSH;PPC From The Last 14 Days
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April 28, 2015
07:07 EDTTSNTyson Foods to eliminate human antibiotics from broiler chicken flocks by 2017
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06:10 EDTTSNTyson Foods to largely eliminate antibiotics from chicken by mid-2017, WSJ says
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April 27, 2015
15:42 EDTPPC, TSNIowa Department of Agriculture reports four more cases of probable bird flu
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April 22, 2015
07:28 EDTPPC, TSNMexico halts imports of poultry products from Iowa due to bird flu, Reuters says
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April 21, 2015
08:33 EDTPPC, TSNBird flu outbreak spreads to large Iowa chicken farm, WSJ reports
An Iowa farm with about 5.3M chickens in Osceola County is the latest, and largest, chicken flock to be affected by an ongoing outbreak of avian influenza, or bird flu, reported The Wall Street Journal. The addition of this large flock brings the total number of chickens and turkeys affected by avian influenza to nearly 8M, the report noted. Last night, Hormel Foods (HRL) provided additional information regarding the anticipated impact of recent avian influenza outbreaks on its Jennie-O Turkey Store segment, stating that lower turkey supply is expected to impact plant operations and cause reduced sales volumes as the year progresses. Other publicly traded companies in the meat production space include Pilgrim's Pride (PPC), Sanderson Farms (SAFM) and Tyson Foods (TSN). Reference Link

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