Friday, May 2, 2008

Sadia's (SDA) chart.

Sadia just hit a new high this week! Not only did it hit a new high, it did so by rallying nearly seven percent! As Tony the Tiger would say 'That's GRRRRRREAT!'.

When you see a company break through resistance and hit a new high, it's usually a good sign that the company will keep moving higher.

Sadia is a particularly strong company. You can find their products and meats in the freezer isle in rapidly growing Brazil. Considering that Brazil is growing by over seven percent and food prices are doubling almost every year, this company should easily see huge profit growth in the future.

While I'm not excited about their margins, they do seem average for the industry. Yet their return on equity is 25%, revenues are growing by 26%, and earnings by 32%. And if you look at value metrics like cash flow to market cap, then you'd notice that this company has

NEARLY A THIRD of their market cap covered by cash flow! That's amazing!

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