Pork Producers Ride Positive Analyst Report

KANSAS CITY - Two Kansas City area pork producers reached record highs after a JPMorgan analyst said meat producers would get a boost from using animal fats to produce diesel fuel.
calendar icon 18 April 2007
clock icon 3 minute read

Premium Standard Farms of Kansas City and Seaboard Corp. of Merriam reached highs of $22.10 and $2,650, respectively, Tuesday after analyst Pablo E. Zuanic suggested in a note to investors that they would see higher share prices and higher earnings per share from following the lead of Tyson Foods Inc. and ConocoPhillips.

On Monday, Tyson and ConocoPhillips said they would produce and market a renewable diesel fuel in the U.S. using beef, pork and poultry fat. Zuanic wrote that the deal could add 50 cents to $2 to Tyson’s share price and 4 cents to 16 cents to earnings per share.

Premium Standard closed at $21.95, down 8 cents; thinly traded Seaboard closed at $2,620, up $136.99, or 5.52 percent.

Also reaching record highs Tuesday were Embarq Corp., Tortoise Capital Resources Corp. and Tortoise Energy Capital Corp. Companies reaching 52-week highs included Elecsys Corp. and Epiq Systems Inc.

Overall, stocks closed mixed even as the Dow Jones industrial average flirted with record highs. Investors sent stocks up after data showed a rise in home construction and a mild reading on consumer inflation.

The Dow traded as high as 12,790.02, passing its closing high of 12,786.64 set Feb. 20, and approached its trading high of 12,795.93, reached the same day. The Dow rose 52.58 points, or 0.41 percent, to 12,773.04. Gains in Coca-Cola Co. and Johnson & Johnson, which reported earnings that exceeded expectations, gave the blue chip index its 13th rise out of the last 14 sessions.

Source: KansasCity.com

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