Jim Cramer: Tyson Foods could become the biggest winner from the US-China trade deal

 

·         “Thanks to the African swine fever epidemic in China, I think Tyson Foods is poised to be the biggest winner from the phase one trade deal, or at least in the wake of it,” CNBC’s Jim Cramer said.

·         “This is the mother of all catalysts, people, and while the stock had a big move last year, I’m betting it’s still got a lot more room to run,” the “Mad Money” host said.

·         “At times like this, we want companies with powerful catalysts and stocks that don’t fully reflect their underlying strength,” he said.

 

Tyler Clifford, CNBC

Jan 9 2020

           

Tyson Foods shares rallied hard in 2019 and the stock has more in the tank thanks to a boost from trade, CNBC’s Jim Cramer said Thursday.

 

“Thanks to the African swine fever epidemic in China, I think Tyson Foods is poised to be the biggest winner from the phase one trade deal, or at least in the wake of it,” the “Mad Money” host said of a breakthrough in U.S.-China trade relations.

 

“This is the mother of all catalysts, people, and while the stock had a big move last year, I’m betting it’s still got a lot more room to run,” he said.

 

Chinese Vice Premier Liu He will visit Washington, D.C., next week to sign the phase one agreement between the two countries, according to The Wall Street Journal. The nations have engaged in a trade war for almost two years. As part of the deal, Beijing would boost its agricultural buys.

 

China is facing a pork shortage due to African swine fever, which has depleted supply. Pork is a staple in the country, and the American market is the only one that can fulfill the looming demand. Tyson Foods is the largest U.S. meat processor and China is a big opportunity for the company, Cramer said.

           

As the major indexes continue to set new highs, the host said Tyson Foods is a stock that can be bought “without feeling as though you’re chasing this market like a chump.”

 

“At times like this, we want companies with powerful catalysts and stocks that don’t fully reflect their underlying strength,” he said.

 

Last year, China’s pork supply depleted by more than half and prices ballooned 110% in November. A month later, Tyson Foods received the U.S. government’s blessing to sell into China as progress was made in trade talks.

 

Tyson Foods is projected to bring in...

 

more, including video report [6:06 min.]   

https://www.cnbc.com/2020/01/09/jim-cramer-tyson-foods-may-be-the-biggest-us-china-trade-deal-winner.html