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December 5, 2006
Going Short Chicken
There is a sure-fire unpleasant article in the January 2007 issue of Consumer Reports on a rapid recent rise in bacterially-infected chickens. According to the magazine, which just conducted the largest ever study of the subject, 83 percent of chickens tested nationwide contained campylobacter or salmonella. bacteria. That's up from 49 percent in 2003.The upshot: People are paranoid about chicken already (trust me on that one), and this won't be good news for Pilgrim's Pride (NYSE:PPC) or Tyson Foods (NYSE:TSN). It is remarkable to me how quickly and completely the food-can-kill-you meme has taken hold, so welcome to the next stage.
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I believe that you probably missed the boat on the whole chicken manufacturer shorting cycle. The time was December 2006. Remember Avian flu? The companies haven't recovered from that yet...
Even if you're correct, what will be the substitute (other leg of the trade)?