What Is Seaboard Corporation (SEB)?
You're forgiven if you've never heard of this company - few ever have. Seaboard is conglomerate of seemingly disparate industries - meat production, grain trading, power generation, and sea-based shipping to name a few. But by and large, the company serves as one of the largest vertically integrated pork producers in North America and a 50% owner of the Butterball brand. Yes, think turkey.
Here's a few short reasons why I'm going to buy this stock now:
- One of the tightest shares counts in the public markets. 1.16 million shares, of which 79% is owned by insiders (largely the Bresky family). This suggests there are really only about 250,000 shares out there.
- Relatively light market cap of only $4.4 billion, trading with a 15 P/E ratio.
- Commodities are seeing a current boost with the amount of money being printed into the global economy.
- The company has about $1.54 billion in cash and short-term investments on hand.
- Global reach with operations primarily in the US, but also in the Caribbean, Latin America, and Africa.
- Focuses on relatively stable, but entirely essential industries like food and power.
A quick glance at the volume-weighted average price lines taken from recent highs and lows shows the momentum has clearly changed in terms of direction for the company's share price. Trading above the green line, the company continues to find bullish momentum coming out of the hit in 2020 when meat production was on the frontlines of the pandemic.