בס״ד

If The Vegetarianism Doesn’t Kill You, The Vegetarians Will (BG)

Posted on November 4, 2020

This week’s A Jew and His Gold is brought to you by a 40 oz. Texas T-bone steak – fatty as they come (kosher slaughter, of course) – with marinade of your choice and an ice cold can of Schlitz to wash it down.

Because you deserve it.

Ladies and gents, we believe in meat.  And we have a feeling you do, too.

In fact, if we had to characterize this investment letter in its broadest terms, we’d call it ‘options con carne’, and we’d like you to recommend it to all your friends as such.

And so long as we’re talking about recommendations, here’s another one: we recommend you remain highly suspect of all who cross your path professing an anti-beef weltanschauung.

You’ll be glad you did.

 

For the children…

We raise the issue of ingesting animal protein for the sole reason that today’s trade involves mid-cap agribiz Bunge Limited (NYSE:BG), St. Louis based marketers of NON-MEAT edibles since 1818.

And why have we decided to feast on them?

Aside from the technicals, which we’ll address in a moment, the company’s shares have soared 107% since the Batflu bottom and now sport –

  • A quite reasonable P/E of 18.2 (relatively speaking),
  • A porcine 3.4% annual dividend, and
  • A very lean P/B of 1.75.

And that something is earnings growth.

More specifically, BG’s EPS for the last five years is -39%.

In the last year, they’re down 833%.

And projections for next year see a decline of an additional 15%.

So where’s the proverbial beef?

Hmm…

Take a look now at the daily chart, and pay close attention to the

Many happy returns!

Matt McAbby

 

4 responses to “If The Vegetarianism Doesn’t Kill You, The Vegetarians Will (BG)”

  1. M T says:

    Hey Matt – did y’all get assigned?

    Time to sell some puts? What are you cooking up?
    I’m hauling out the Weber – hope things are good!

    MT

  2. Matt McAbby says:

    bs’d
    BEEF PARTY!
    No assignments at this end, MT.
    You?
    DOW Theory looks to be signaling an upcoming draft higher.
    Waiting for a possible quick leg down before that.
    PUT sales may then be the order of the day.
    Still waiting for it, though.
    In the meantime, keep it cooking!
    Matty

  3. M T says:

    Yeah, got called on my short 55s.
    Am I imagining a pinching, rising wedge like price action here?

    Waits while we wait:
    https://www.youtube.com/watch?v=PejBkU4-1fk

    MT

  4. Matt McAbby says:

    bs’d
    Ahhh…
    Great Waits.
    Not your imagination, MT. We also see the wedgie.
    Never a comfortable sight.
    Rollover appears to be coming. But will it be in time?
    Sorry to hear about the short 55’s.
    Very rare.
    We just addressed this with another subscriber a few weeks ago.
    And while we have you, can we ask about the sizzling flesh?
    Any marinade?
    Full detail on garlic, onion, peppers, sautees and other toppings would be appreciated.
    We’ll have to censor any mention of non-kosher products, of course.
    Otherwise, you’re a ben-bayit with us, MT.
    Lay it on.
    Matt

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