Anthony Speciale Stock Market Analyst

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Bird is the Word as We Book Gains in Sanderson Farms

Bird was the word last month, as members of my Rapid Wealth Alliance program just locked in some profits on Sanderson Farms, Inc. (SAFM)!

Bird was the word last month, as members of my Rapid Wealth Alliance program just locked in some profits on Sanderson Farms, Inc. (SAFM)!

Today, I’m going to give you a sneak peek into the initial trade write-up so you can see for yourself just what it looks like…

Here’s an excerpt of the alert I published for subscribers when we initiated this trade back on Feb. 7…

Getting In Early

“Sanderson Farms is a dressed-chicken processor in the United States, producing and selling a variety of fresh, frozen, and value-added chicken products to grocers, food-service operators, and distributors.

Most revenue is generated in the Southeastern, Southwestern, Northeastern, and Western United States.

The company’s product portfolio consists of tray packs and large birds, catering to grocery and food-service customers.

It sells chill-packed, ice-packed, bulk-packed, and frozen chicken in whole, cut-up, and boneless form under the brand name Sanderson Farms to retailers, distributors, and casual dining operators in the United States.

The company sits modestly undervalued with a price/earnings (P/E) ratio of just 8.91.

They’re making money with cash on hand. As you all know, I love businesses with cash flow!

SAFM Operating Cash Flow, Free Cash Flow, Net Income * Cash Flow for Dividends – Source: GuruFocus

Revenue is rising steadily, net income is looking good and there’s plenty of cash. The chicken business today appears there is certainly nothing to cluck at!”

The Technical Picture

At the time of the alert, price was in a strong overall uptrend.

And the short-term weakness was appealing to buy shares of such a fundamentally strong business.

Here’s what the chart looked like back in February…

February Weekly Chart of Sanderson Farms, Inc. (SAFM) – Source: TradingView

So, I recommended SAFM for the portfolio up to $183.00 per share, and we recorded an entry price at $182.50 on Feb. 7.

Price action first tested technical resistance below before taking off for us.

Now, I’m sure you’ve seen the price of food at your local supermarket lately…

Prices are out of control and expensive. But this sector is winning thanks to this.

Here’s how the chart has developed since then…

Current Weekly Chart of Sanderson Farms, Inc. (SAFM) – Source: TradingView

As you can see, the stock first pulled back slightly but then rallied over the next several months with a series of strong bullish pushes.

And on June 21, members of my Rapid Wealth Alliance research service were instructed to close half of the position to lock in partial profits.

We recorded an exit price of $209.92, which equates to a 15% return on investment!

At this point, we’ve placed a stop loss at breakeven levels, and we’re looking for continued upside from here.

We’re very excited to be booking profits, especially as the broad markets are down 20%-30%.

Welcome to the Alliance

Now, if you’re looking for a way to navigate these wild markets and make gains like this, consider checking out my Rapid Wealth Alliance research service.

We run a portfolio of approximately 20 great companies that meet our ultra conservative criteria.

We find undervalued companies with strong fundamentals and financials for long-term value investing.

In addition to our trade in SAFM, our model portfolio recently booked a gain in Natus Medical Incorporated (NTUS) for a 50%+ return, and there are more in the works.

To learn more about my approach to value investing, portfolio building and wealth creation, click here now!

I’ll look forward to seeing you on the inside next Tuesday for our live weekly session!

Rules to Live By

“There is no good and evil, there is only power and those too weak to seek it.” J.K. Rowling

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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