posted by admin on 25/04/06
Wall Street's bottom-feeders are nibbling on chicken stocks.
Avian flu's spread has been bad news for poultry producers, sending their share prices tumbling. But that has whetted the appetites of bargain hunters, who foresee H5N1 causing only temporary trouble, defying skeptics who warn against underestimating the flu's dangers.
Stocks of chicken producers are down sharply since bird flu surfaced in Asia more than a year ago. They fell further last week after Tyson
Foods, the nation's biggest chicken producer, slashed its earnings targets and said flu fears were hurting demand and depressing prices. The sector rebounded a bit on Friday after Credit Suisse analyst David Nelson upgraded Tyson to "outperform" from "neutral," arguing that most of the bad news was cooked into the stock. Just a day earlier, however, D.A. Davidson analyst Timothy Ramey downgraded the stock to "neutral" from "buy," citing a global decline in chicken prices.