CMFO, HQS, YUII, SFD, RRST, CIDM, Food - Meat Stocks 31.25% undervalued
February 28, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Food - Meat sector and these stocks are the most undervalued as of today. CHINA MARINE FOOD GROUP LTD (AMEX:CMFO), HQ SUSTAINABLE MARITIME INDU (AMEX:HQS), YUHE INTERNATIONAL INC (NASDAQ:YUII), SMITHFIELD FOODS INC (NYSE:SFD), RRSAT GLOBAL COMMUNICATIONS (NASDAQ:RRST), CINEDIGM DIGITAL CINEMA - A (NASDAQ:CIDM) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry CMFO CHINA MARINE FOOD GROUP LTD 3.7 5.38 31.25% undervalued Food - Meat HQS HQ SUSTAINABLE MARITIME INDU 4.17 6.4 34.82% undervalued Food - Meat YUII YUHE INTERNATIONAL INC 8.55 9.7 11.83% undervalued Food - Meat SFD SMITHFIELD FOODS INC 22.9 28.62 19.98% undervalued Food - Meat RRST RRSAT GLOBAL COMMUNICATIONS 7.23 12.16 40.56% undervalued Movies and TV CIDM CINEDIGM DIGITAL CINEMA - A 1.66 6.64 75.00% undervalued Movies and TV
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
CHINA MARINE FOOD GROUP LTD (AMEX:CMFO) - China Marine Food Group Limited, through its subsidiaries, engages in processing, distributing, and selling processed seafood products in the Peoples Republic of China. It offers dried processed seafood products, such as roasted squid, roasted file fish, roasted prawns, shredded roasted squid, smoked eel, barbecued squid, sliced barbecued squid, sliced roasted octopus, spicy sliced octopus, spicy baby squid, spicy sliced squid, and spicy squid head primarily under the Mingxiang brand name. The company sells its dried processed seafood products through distributors in the provinces of Peoples Republic of China, including Fujian, Guangdong, Jiangsu, Shandong, Sichuan, Zhejiang, and Liaoning. It also provides frozen processed seafood products comprising frozen Japanese butter fish, octopus, squid rings, cuttlefish, pomfret, prawns, and sliced squid that are sold directly to wholesalers. In addition, the company involves in the sale of fresh and frozen marine catch, including cuttlefish, hairtail fish, Japanese butter fish, squid, and horse mackerel. Further, it manufactures and sells algae-based soft drinks under the Hi-Power brand name. The company also exports its products to Japan, the Philippines, Ukraine, and Papua New Guinea. China Marine Food Group Limited is based in Shishi City, the Peoples Republic of China.
HQ SUSTAINABLE MARITIME INDU (AMEX:HQS) - HQ Sustainable Maritime Industries, Inc., together with its subsidiaries, operates as an integrated aquatic product producing, processing, and farming company in the Peoples Republic of China, Europe, and Asia. Its principal products include cross-bred hybrid of tilapia and white-legged shrimp that are exported to the United States, Canada, Japan, and European countries. The company also engages in the production and sale of marine bio-products and healthcare products comprising shark cartilage capsule, shark liver oil, and shark liver. HQ Sustainable Maritime also produces nutraceuticals generated from palm oil and other natural or organic matters for tilapia and shrimp. The company was founded in 1989 and is headquartered in Seattle, Washington.
YUHE INTERNATIONAL INC (NASDAQ:YUII) - Yuhe International, Inc. engages in the supply of day-old chickens raised for meat production or broilers in the Peoples Republic of China. The company purchases baby parent breeding stocks from primary breeder farms, raises them for hatching eggs, and sells live day-old broilers. It also engages in the production and sale of feed stock. The company operates 15 breeder farms and 2 hatcheries with a total annual capacity of 1.2 million sets of breeders and 120 hatchers. Its customers principally include distributors and end users, such as integrated chicken companies, broiler raising companies, and individual broiler raisers. The company was founded in 1996 and is based in Weifang, the Peoples Republic of China.
SMITHFIELD FOODS INC (NYSE:SFD) - Smithfield Foods, Inc., together with its subsidiaries, engages in the production and marketing of fresh meat and packaged meat products in the United States and internationally. It involves in the production of hog, processing of pork, production of turkey, and live cattle operations. The company offers fresh pork to retail customers as unprocessed, and trimmed cuts, such as butts, loins, picnics, and ribs; packaged meat products, including smoked and boiled hams, bacons, sausages, hot dogs, deli and luncheon meats, pepperoni, dry meat products, beef, and poultry, as well as ready-to-eat prepared foods, such as pre-cooked entrees, and pre-cooked bacons and sausages. It sells its products to supermarket chains; wholesale distributors; the foodservice industry, including fast food, restaurant and hotel chains, hospitals, and other institutional customers; export markets, and other further processors. The company sells its products through its salespersons and independent commission brokers. Smithfield Foods, Inc. was founded in 1961 and is headquartered in Smithfield, Virginia.
RRSAT GLOBAL COMMUNICATIONS (NASDAQ:RRST) - RRsat Global Communications Network Ltd. provides content management and distribution services to television and radio broadcasting industries. The company, through its proprietary RRsat Global Network comprising satellite and terrestrial fiber optic transmission capacity and the public Internet, offers distribution services for content providers. Its content distribution services consist of worldwide transmission of video and audio broadcasts. The company also offers content management services, including digital archiving and compilation of customers programming and advertising content into various broadcast channels. In addition, RRsat Global Communications Network Ltd. provides various production services on a contractual basis and satellite newsgathering services through its fleet of vans for outside broadcasting and electronic news gathering crews and packages. Further, it offers live broadcast studios and editing facilities to its customers. The companys RRsat Global Network delivers content to various end markets, including cable operators, satellite operators, Internet protocol television operators, direct to home market, and public Internet. Additionally, RRSat Global Communications Network provides mobile satellite telecommunications services, such as global telephony, fax, data, Internet, and other value added services for shipping, aviation, construction, and oil companies; humanitarian aid organizations; governmental agencies; and other end customers that require telephony and Internet services in remote areas. As of December 31, 2009, it provided services to approximately 545 television and radio channels in approximately 150 countries. The company was founded in 1981 and is headquartered in D.N. Shikmim, Israel.
CINEDIGM DIGITAL CINEMA - A (NASDAQ:CIDM) - Cinedigm Digital Cinema Corp. provides technology solutions, software services, electronic delivery, and content distribution services to owners and distributors of digital content to movie theatres and other venues. Its Media Services segment offers technology solutions, software, and digital content delivery services via satellite and hard drive to the motion picture and television industries; finances vehicles and administrators for digital cinema projection systems and deployment; develops and licenses software to the theatrical distribution and exhibition industries, as well as for intellectual property rights and royalty management; and provides application, software enhancements and consulting, and information technology consulting and managed network monitoring services. This segment also distributes digital content to movie theatres and other venues; provides satellite-based broadband video, data and Internet transmission, encryption and key management, and video network origination and management services; and offers a virtual booking center to outsource the booking and scheduling of satellite and fiber networks, as well as forensic watermark detection services for motion picture studios, and forensic recovery services for content owners. Its Content and Entertainment segment provides content distribution services to theatrical exhibitors, in-theatre advertising, and motion picture exhibition. This segment also provides cinema advertising services and entertainment; acquires, distributes, and provides marketing for programs of alternative content to theatrical exhibitors; and operates a nine-screen digital movie theatre. The companys Other segment provides hosting and network access for other Web hosting services. The company was formerly known as Access Integrated Technologies, Inc. and changed its name to Cinedigm Digital Cinema Corp. on October 5, 2009. Cinedigm Digital Cinema Corp. was founded in 2000 and is based in Morristown, New Jersey.
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