Tyson Foods Sinks on Poor Expectations
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“Cut-to-the-Chase” Members Make 354% Potential Profit!

by Ian Harvey
August 09, 2019

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Tyson Foods saw its stock sink 8% following its announcement that earnings for its fiscal fourth quarter wouldn't live up to prior expectations. The meat producer said that volatility in the commodities markets, costs of following enhanced food safety initiatives, a fire at one of its processing plants, and some other challenges all combined to hurt Tyson's prospects for fourth-quarter growth.

But, “Cut-to-the-Chase” Members make 354% potential profit with a Put Option.

A NICE POTENTIAL PROFIT FOR THE WEEK!

Tyson Foods, Inc. (NYSE: TSN), operating as a food company worldwide, lowered its 2019 adjusted earnings forecast on Tuesday, citing a litany of causes including a recent fire at its Holcomb slaughterhouse and volatility in the commodity market.

"The discrete challenges we've encountered this quarter now lead us to believe we will fall short of our previously stated guidance," said Noel White, Tyson Foods' chief executive officer.

Tyson now expects to earn an adjusted profit between $5.30 and $5.70 per share, from a prior forecast of $5.75 to $6.10 per share.

Tuesday's forecast comes nearly a month after the company posted better-than-expected third quarter earnings, which sent its shares to a record high.

Tyson Foods saw its stock sink 8% following its announcement.

Why the Put Trade on Tyson Foods?

There are several factors that caused the initiation of the put trade on Tyson Foods, such as…..

  • volatility in the commodities markets,
  • a reversal of a gain on mark to market grain derivatives recognized in the third quarter,
  • costs of following enhanced food safety initiatives,
  • a fire at one of its processing plants,
  • slower than expected operational improvements in the chicken segment, and
  • last month Tyson recalled nearly 40,000 pounds (18,144 kg) of its Weaver chicken patties after some consumers found pieces of rubber in the product.

Also, there are some other challenges, combined with those above, that have hurt Tyson's prospects for fourth-quarter growth.

Therefore, advising members to consider buying this.....

.....Options trade: Buy the TSN SEP 20 90.000 PUT at approximately $1.10.

YOU NEED TO BE IN TO PROFIT!

Moving Forward for Tyson Foods

Tyson Foods said its outlook for fiscal 2020 remains positive as it expects more favorable market conditions.

Tyson has been upbeat about the next fiscal year as it looks to reap benefits from the spread of African Swine Fever, a fatal hog disease in China.

Where to Now?

"Our diversified portfolio is uniquely suited to respond to dynamic and challenging market conditions, and we continue to expect better performance in fiscal 2020," said CEO Noel White. "We're very optimistic about our long-term potential as we focus on prepared foods growth, international growth and serving our customers."

GREED  CAN BE THE UNDOING OF A GOOD PROFIT!

What Can You Do?

Therefore, if you agree that Tyson Foods can overcome these challenges already mentioned and produce more positive results for fiscal 2020, consider the following options trade…..

.....Buy the TSN JAN 17 2020 87.500 CALL at approximately $5.00.

PATIENCE PAYS OFF!

If you are not a member and are interested in being part of this profitable action just CLICK HERE.

AS ALWAYS THE DECISION IS YOURS!

OR other memberships.....CLICK HERE......


An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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