XLP - Sanderson Farms: Priced For Flight

May, 05 2022 01:37 PM SPDR Select Sector Fund - Consumer Staples

Food giants Cargill and Continental Grain announced the joint acquisition of Sanderson Farms on August 9, 2021, for $203 per share cash.
The Poultry Market in the USA is not concentrated; the deal presents little traditional competition risk.
Recent accusations of price-fixing in the poultry sector present political risk but SAFM is cheap even if the DoJ were to sue to block the deal.
Since August, chicken prices have skyrocketed, Sanderson's results have exploded, and the shares look extremely cheap. Sanderson will benefit from continued inflation if the deal is blocked.

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Company Name:	SPDR Select Sector Fund - Consumer Staples
Stock Symbol:	XLP
Market:	NYSE