This midcap with very high insider ownership (70%) and superb valuation fundamentals has had its profit margins encroached by increasing corn and grain prices caused by the push to utilize biofuels. Although SEB produces grains in one subsidiary, production and shipping of pork products are the main area of expertise. The feed for the swine is getting much more expensive and the company is taking steps to reduce their costs (see the annual report's management discussion). The feeling is that this will moderate to some degree as many activist groups raise the alarm regarding the impact of of dramatically increasing food prices on developing nations. I've done a full analysis on the company previously in this blog.
This is still a relatively small company that has found its niche and has produced a fantastic ROIC for shareholders. Look at $100 of stock would have returned to you in the chart above.
I'm hoping for a drop in the share price back to $1300 so I can add to a position.
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