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HRL, HQS, YUII, SFD, CMFO, LGF, Food - Meat Stocks 39.81% undervalued

^{Published on 2011-02-28 10:30:42 - WOPRAI}
 

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. HORMEL FOODS CORP (NYSE:HRL), HQ SUSTAINABLE MARITIME INDU (AMEX:HQS), YUHE INTERNATIONAL INC (NASDAQ:YUII), SMITHFIELD FOODS INC (NYSE:SFD), CHINA MARINE FOOD GROUP LTD (AMEX:CMFO), LIONS GATE ENTERTAINMENT COR (NYSE:LGF) 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               
     HRL        HORMEL FOODS CORP                   27.15          45.11          39.81% 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            
     CMFO       CHINA MARINE FOOD GROUP LTD         3.7            5.38           31.25% undervalued          Food - Meat            
     LGF        LIONS GATE ENTERTAINMENT COR        5.96           7.1            16.11% 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.

HORMEL FOODS CORP (NYSE:HRL) - Hormel Foods Corporation, together with its subsidiaries, produces and markets various meat and food products in the United States and Internationally. It offers meat products, including fresh, frozen, cured, smoked, cooked, and canned meat. The company provides perishable meat products, which include fresh meats, sausages, hams, wieners, and bacon; poultry products that comprise JOTS products; and shelf-stable products, including canned luncheon meats, shelf-stable microwaveable entrees, stews, chilies, hash, meat spreads, flour and corn tortillas, salsas, and tortilla chips. It also offers nutritional food products and supplements, sugar and sugar substitutes, creamers, salt and pepper products, sauces and salad dressings, dessert and drink mixes, and industrial gelatin products. In addition, Hormel Foods offers refrigerated, microwaveable, multi-portion potato-/pasta-based side dish products. The company sells its products through its sales personnel, as well as through independent brokers and distributors. It was formerly known as George A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. The company was founded in 1891 and is based in Austin, Minnesota.

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.

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.

LIONS GATE ENTERTAINMENT COR (NYSE:LGF) - Lions Gate Entertainment Corp. engages in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand, and digitally delivered content. The company operates through three segments: Motion Pictures, Television Production, and Media Networks. The Motion Pictures segment engages in the development and production of feature films; acquisition of North American and worldwide distribution rights; North American theatrical, home entertainment, and television distribution of feature films produced and acquired; and worldwide licensing of distribution rights to feature films produced and acquired. The Television Production segment involves in the development, production, and worldwide distribution of television productions, including television series, television movies and mini-series, and non-fiction programming. The Media Networks segment includes TV Guide Network, a general entertainment cable network in the United States, including TV Guide Network On Demand; and TV Guide Online, an online navigational tool, as well as provider of television listings, and video and other entertainment content. This segment also provides programming distribution rights to multi-system cable operators and digital broadcast satellite providers; and sells advertisements on its television channel and related online media platforms. It distributes a library of approximately 8,000 motion picture titles and approximately 4,000 television episodes and programs directly to retailers, video rental stores, DVD rental kiosks, and pay and free television channels in the United States, Canada, the United Kingdom, and Ireland, as well as through various digital media platforms; and indirectly to other international markets through subsidiaries and various third parties. Lions Gate Entertainment Corp. was founded in 1986 and is headquartered in Vancouver, British Columbia.

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