Q: Hi,
I came across the U.S company Sanderson Farms in a recent issue of Moneysense. I am thinking of taking a small position in it (About 1% of my portfolio). The valuation on it seems very cheap, and the company seems to be profitable and cash flow positive. What are the main risks with this name (Leaving aside currency risk). Do you agree that the valuation (P/E) is very cheap. If so, why is that?
I came across the U.S company Sanderson Farms in a recent issue of Moneysense. I am thinking of taking a small position in it (About 1% of my portfolio). The valuation on it seems very cheap, and the company seems to be profitable and cash flow positive. What are the main risks with this name (Leaving aside currency risk). Do you agree that the valuation (P/E) is very cheap. If so, why is that?