Inghams - Reason to invest

Ingham's went public 2 weeks ago. Price bump up a bit but now went down to $3.00. Yes it is too early to judge. Some are fearful to buy this stock due to the size when it went public. They assume that all big company who went public will have a sinking SP.

Ingham's is the largest supplier of chicken in Australia and 2nd in New Zealand. Their customer? Woolies, Coles, Aldi, KFC and many many more.

But who cares if they are the largest supplier? You won't care until you see this graph.

View attachment 352565


http://www.chicken.org.au/

Chicken is the future of Australia. White meat. Cheap. Healthy. And as long as Tuesday exists, more people will fall in line in KFC.

Australians surpassed Americas to claim world's most voracious meat eaters.

So what do I expect?

I don't expect this to fly high exponentially but rather this will fly slowly and steadily upward. As population grows, Ingham's grows. As they open new factory, their footprints grow.

What to expect?

South Australia is very excited about it! Why?

South Australia is set to become a strategic national hub for leading Australian chicken meat producer, Ingham’s, following the company’s decision to invest $275 million across multiple projects in our capital city, Adelaide, and nearby regional areas. The expansion is expected to create 850 direct jobs and 620 construction jobs.

To meet growing local and national demand, the company is expanding its facilities to significantly increase its capacity throughout the production chain, including breeding, hatching, processing, feed production and product distribution at 15 sites. With this project, the company will double its rate of investment and the majority of that investment will be in South Australia.

http://invest.sa.gov.au/case-studies/inghams/





Do you want to know where would they invest their money?

http://mobile.abc.net.au/news/2016-...ctorian-farmers-fear-cuts/8009098?pfmredir=sm

Chicken meat farmers contracted to Ingham's are upset they may bear the brunt of $200 million dollars in cost cutting.

"Ingham's must be one of the biggest investors into rural and regional Australia and that will continue.

"We're growing our business across Australia and New Zealand and we're supporting new contract growers.

"We're the only chicken producer where all our farms are RSPCA accredited."

"The issue really for Victoria is that the chicken industry is growing significantly in South Australia, in NSW and Queensland.

"Ingham's is investing over $275m into South Australia, and $100 million into Queensland.


He outlined Ingham's expansion underway in South Australia:

• Breeder farms and a new feed mill near Murray Bridge
• Doubling the hatchery and breeder farms near Monarto
• More contract growers
• Processing

In Queensland, investment includes:

• New breeder facilities
• Contracts with more growers in south-east Queensland and northern New South Wales
• Expanding processing in northern New South Wales.

So why is SP falling?
Due to Bad timing when they went public! US Election and Brexit. But people gets hungry and eventually wants to consume the cheapest protein.

http://inghams.com.au/products/

Low risk. Forecast 5% fully frank dividend. For Long term holder.