Originally Posted by
Balance
TGH's full year guidance is so wide ($33m to $41m), a truck can drive through comfortably with meters to spare on both sides!!!
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From NBR market wrap on Friday : "Tegel dropped 2.5 percent to $1.16 after government food price data for March showed chicken prices fell 6.5 percent for the year, extending a trend of annual declines since June 2015. Chicken has become more investible in Australia and New Zealand, with Inghams Group listed on the ASX, but the two companies are also battling for market share. "There's lots of competitive tension between Tegel and Inghams," said Peter McIntyre, an investment adviser at Craigs Investment Partners. "There's a bit of a price war going on" and the poultry price figures had also weighed on the stock. Craigs expects Tegel to post full-year profit at the lower end of its $33 million to $41 million guidance."
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With the benefit of reading industry news, seems like Tegel and Ingham have both embarked on a major production increase and upgrade in the last 2 years and demand has not been there.