Noticed at Pak n save in my last two visits chicken drum sticks going cheap at $3.99/kg.
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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.:mellow:
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.
Chickens on specials again at local Pak n Save - chicken legs at $4.99 per kg and drumsticks at $3.99 kg.
No end in sight to low prices (yahhhhh!) and global prices are dropping now as well.