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To: waver99 who wrote (48821)

7/22/2012 5:09:22 PM

From: Spekulatius

Read Replies (1) of 51743

Re SFD - this stock looks like a decent value to me. I checked in thwir latest 10-k and they hedge exposure to corn prices, product (hog)prices and energy cost.

Exerpt from 10-k means that they should show a ~50M$ gain for a 10% increase in feedstock prices. This looks like the impact of higher corn prices should be buffered.

Sensitivity Analysis
The following table presents the sensitivity of the fair value of our open derivative contracts to a hypothetical 10% change in market prices or in interest rates and foreign exchange rates, as of April 29, 2012 and May 1, 2011.



	April 29, 2012		May 1, 2011
	(in millions)
Grains	$	49.4	$	33.1
Livestock	18.0		85.4
Energy	3.3		0.3
Interest rates	—		—
Foreign currency

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