Core Insights - Palm Valley Capital Fund reported a 2.35% appreciation in Q3 2025, underperforming the S&P SmallCap 600's 9.11% gain and the Morningstar Small Cap Total Return Index's 7.99% rise [1] - The Fund's cash equivalents increased from 73.5% to 74.1% during the quarter, indicating a cautious investment strategy [1] - Small-cap stocks outperformed large caps due to expectations of Federal Reserve easing and reduced tariff concerns impacting corporate profits [1] Company Analysis: Seaboard Corporation (AMEX:SEB) - Seaboard Corporation's stock experienced a one-month return of -8.82% but gained 13.90% over the past 52 weeks, closing at $3,536.60 with a market capitalization of $3.392 billion on October 7, 2025 [2] - The Fund sold its investment in Seaboard Corporation during Q3 2025, having acquired it at a significant discount to tangible book value, which increased to nearly 50% in early 2025 [3] - Seaboard operates in cyclical industries, showing volatility in operating results, yet has consistently generated profits across various business cycles [3] - The company is actively modernizing and expanding its infrastructure, utilizing cash flows for aggressive investments [3] Investment Sentiment - Seaboard Corporation is not among the top 30 most popular stocks among hedge funds, with 19 hedge fund portfolios holding it at the end of Q2 2025, a slight decrease from 20 in the previous quarter [4] - While Seaboard is recognized for its potential, the analysis suggests that certain AI stocks may offer better upside potential with lower downside risk [4]

Group 1 - The article emphasizes a value-oriented approach to finance, highlighting that valuation is more indicative of long-term opportunities or risks rather than short- to mid-term timing indicators [1] - The author prioritizes the written word and data over simple ratings, often assigning hold/neutral ratings even when having a bullish or bearish inclination [1] - The article aims to inform readers rather than make investment decisions, acknowledging that rating systems do not account for different time horizons or investment strategies [1] Group 2 - There is a disclosure stating that the author has no stock, option, or similar derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article expresses the author's personal opinions and indicates that they are not receiving compensation for it, aside from Seeking Alpha [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are being made [3]

[Earnings Report and Dividend Declaration](index=1&type=section&id=Earnings%20Report%20and%20Dividend%20Declaration) Seaboard Corporation's unaudited earnings report for Q2 2025 highlights strong financial growth and the declaration of a quarterly cash dividend [Company and Reporting Period Details](index=1&type=section&id=Company%20and%20Reporting%20Period%20Details) Seaboard Corporation (NYSE American symbol: SEB) released its unaudited earnings report for the three and six months ended June 28, 2025, and June 29, 2024, from its offices in Merriam, Kansas - Seaboard Corporation (NYSE American symbol: SEB) is headquartered in Merriam, Kansas[1](index=1&type=chunk) - The report covers unaudited earnings for the three and six months ended June 28, 2025, and June 29, 2024[1](index=1&type=chunk) [Summary Financial Performance](index=1&type=section&id=Summary%20Financial%20Performance) Seaboard Corporation demonstrated strong financial growth for both the three and six months ended June 28, 2025, with significant increases in net sales, operating income, and net earnings attributable to Seaboard, leading to substantial growth in earnings per common share Summary Financial Performance (Unaudited, in millions of dollars except per share amounts) | Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | YoY Change (3M) | Six Months Ended June 28, 2025 | Six Months Ended June 29, 2024 | YoY Change (6M) | | :-------------------------------- | :------------------------------- | :------------------------------- | :---------------- | :------------------------------ | :------------------------------ | :---------------- | | Net sales | $2,480 | $2,209 | +12.27% | $4,796 | $4,400 | +9.00% | | Operating income | $52 | $30 | +73.33% | $90 | $10 | +800.00% | | Net earnings attributable to Seaboard | $102 | $61 | +67.21% | $134 | $83 | +61.45% | | Earnings per common share | $105.22 | $62.82 | +67.50% | $138.11 | $85.47 | +61.59% | | Average number of shares outstanding | 969,427 | 971,055 | -0.17% | 970,228 | 971,055 | -0.08% | [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) Seaboard Corporation's Board of Directors authorized and declared a quarterly cash dividend of $2.25 per common share, maintaining the same dividend rate as the prior year's comparable periods - A quarterly cash dividend of **$2.25 per common share** was authorized and declared by the Board of Directors[3](index=3&type=chunk) - The dividend is payable on August 18, 2025, to stockholders of record at the close of business on August 8, 2025[3](index=3&type=chunk) - The declared dividend of **$2.25 per common share** is consistent with the dividends declared in the three and six months ended June 29, 2024[2](index=2&type=chunk)[3](index=3&type=chunk) [SEC Filing Information](index=1&type=section&id=SEC%20Filing%20Information) Seaboard Corporation has filed its Quarterly Report on Form 10-Q with the United States Securities and Exchange Commission, making it available on its investor relations website - Seaboard Corporation filed its Quarterly Report on Form 10-Q with the United States Securities and Exchange Commission[2](index=2&type=chunk) - The Quarterly Report on Form 10-Q is accessible on the company's website at https://www.seaboardcorp.com/investors[2](index=2&type=chunk)

Group 1 - Seaboard Corporation (NYSE: SEB) is considered significantly undervalued, warranting a Buy rating [1] - The company has a solid financial position, capable of paying its long-term debt [1] Group 2 - The analyst has experience in analyzing agricultural commodity markets and managing trading and data analysis teams [1] - The trading team has invested in bonds, equities, and ETFs [1] - The analyst's approach to generating recommendations is based on financial statements, regulations, and macroeconomic variables [1]

Core Viewpoint - Seaboard Corporation has announced a share repurchase program authorizing the repurchase of up to $100 million of its outstanding shares through December 31, 2027, which can be modified or terminated at the company's discretion [1][2]. Company Overview - Seaboard Corporation is a diversified international agribusiness, energy, and transportation company, primarily engaged in domestic pork processing, biofuel production, and cargo shipping. It also operates in commodity merchandising, flour and feed milling, produce farming, electric power generation, and sugar and alcohol production overseas [4]. Share Repurchase Program Details - The share repurchase program allows the company to repurchase shares through various means, including open-market purchases, block trades, and privately negotiated purchases, in compliance with federal securities laws [1]. - The program does not obligate the company to acquire a minimum amount of shares and can be modified, suspended, or terminated at any time [2]. - Repurchased shares will be retired and will resume the status of authorized and unissued shares [2]. Reporting and Compliance - Information regarding share repurchases will be disclosed in the company's periodic reports on Form 10-Q and Form 10-K filed with the SEC as required by applicable rules [2].

Financial Performance - Seaboard Corporation announced earnings for the three months ended March 29, 2025[4] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $2.25 per share of common stock[4] - The dividend is payable on May 19, 2025, to stockholders of record at the close of business on May 8, 2025[4]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 38 years of trading experience, emphasizing his contrarian stock selection style and the development of the "Victory Formation" system for identifying stocks [1] Group 1: Investment Strategies - Paul Franke's investment approach includes using a diversified portfolio of at least 50 well-positioned stocks to achieve regular outperformance in the stock market [1] - The "Victory Formation" system focuses on supply/demand imbalances indicated by specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep-value stocks or those showing significant positive technical momentum reversals [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2024, he is ranked in the Top 3% of bloggers by TipRanks® for 12-month stock picking performance over the last decade [1] Group 3: Risk Management - Franke recommends investors implement stop-loss levels of 10% or 20% on individual stock choices to manage risk effectively [1] - The strategy emphasizes the importance of daily algorithm analysis of fundamental and technical data to identify potential investment opportunities [1]

Business Segments - Seaboard operates in six reportable segments: Pork, CT&M, Marine, Liquid Fuels, Power, and Turkey, with significant operations in over 45 countries[15]. - The Pork segment is ranked third in hog production and fourth in pork processing in the U.S., processing approximately six million hogs annually at its Iowa plant[27][17]. - Seaboard's sugar and alcohol production facility in Argentina has an annual capacity to crush approximately three million metric tons of sugarcane, producing up to 250,000 metric tons of sugar or 33 million gallons of alcohol[24]. - The Marine segment has completed two new dual-fueled vessels in 2024, with six more under construction, expected to be completed in 2025, primarily fueled by liquefied natural gas[20]. - Seaboard's Liquid Fuels segment produces biodiesel and renewable diesel, generating environmental credits such as RINs and LCFS credits based on production volumes[21]. - The Turkey segment had two retail customers that represented approximately 30% of its total sales in 2024[26]. - The CT&M segment sources and markets approximately 14 million metric tons of agricultural commodities annually, impacting supply and demand dynamics[35]. Financial Performance - Seaboard's net sales for 2024 were $9.1 billion, a decrease of $500 million compared to $9.6 billion in 2023, primarily due to a $422 million decrease in the CT&M segment sales[129]. - Operating income for 2024 was $156 million, an increase of $243 million compared to a loss of $87 million in 2023, driven by a $475 million increase in the Pork segment[130]. - Seaboard's long-term debt was $1.0 billion as of December 31, 2024, including a Term Loan due 2033 of $963 million[120]. - Cash generated from operating activities was $519 million for 2024, down from $710 million in 2023, primarily due to changes in working capital[121]. - Seaboard's available borrowing capacity under lines of credit was $985 million as of December 31, 2024[119]. - The company reported a net cash used in investing activities of $484 million in 2024, compared to $273 million in 2023[192]. Market and Economic Factors - Seaboard's operations and financial performance are significantly linked to commodity prices, which have historically been cyclical and volatile[64]. - The cost of feed, a major component for the Pork and Turkey segments, is influenced by fluctuations in corn and soybean meal prices[64]. - Seaboard's international operations may face risks such as changes in foreign currency exchange rates and trade barriers, potentially affecting revenues and cash flows[58]. - The ongoing conflict between Russia and Ukraine has impacted global commodity prices, which could negatively affect Seaboard's business[60]. - The company is subject to extensive environmental regulations, which may lead to increased compliance costs and operational changes[76]. Operational Risks - Cybersecurity breaches pose a risk to Seaboard's operations, potentially impacting sales and financial condition[60]. - The Marine segment's operations are vulnerable to disruptions from hurricanes and adverse weather, which could significantly delay cargo recovery[69]. - The Turkey segment has the capacity to produce approximately one billion pounds of turkey annually, but changes in consumer preferences and brand perception could adversely affect sales volumes and prices[8]. - The Liquid Fuels segment is experiencing increasing competition in foreign markets, which could impact sales volume and pricing[81]. - Seaboard's decentralized operations may slow decision-making and response to compliance issues, posing risks to business operations[74]. Segment-Specific Insights - The Pork segment's retention rate was approximately 80% in 2024, with 26% of its workforce dependent on employment visas[44]. - Seaboard's Pork segment purchased approximately 4% of its slaughtered hogs from third parties in 2024[65]. - The Liquid Fuels segment's performance is contingent on the operation of its renewable diesel plant and two biodiesel plants, with potential contract fulfillment issues if production is short[70]. - The Turkey Segment reported income from affiliate at $37 million in 2024, down 57% from $87 million in 2023, and down 16% from $103 million in 2022[161]. Capital Expenditures and Investments - Seaboard invested $511 million in property, plant, and equipment in 2024, with $299 million allocated to the Pork segment for renewable biogas recovery projects[122]. - The company plans approximately $630 million in capital expenditures for 2025, with $290 million in the Marine segment and $215 million in the Pork segment[124]. - Seaboard's investments in renewable biogas recovery facilities may not yield expected returns due to operational challenges and external variables[77]. Stock and Shareholder Information - Seaboard's common stock is closely held, with the Bresky family owning approximately 73% of the outstanding shares, leading to significant daily price fluctuations[74]. - The average number of shares outstanding decreased to 971,055 in 2024 from 1,117,636 in 2023, reflecting a reduction in share dilution[186]. Tax and Regulatory Considerations - Future changes in tax laws, including the OECD's minimum tax rules, could increase Seaboard's effective tax rate and complicate tax compliance[76]. - The federal blender's credits included in sales were $125 million for 2024, down from $103 million in 2023, as the credits expired at the end of 2024[155].

Financial Performance - Seaboard Corporation reported net sales of $2,482 million for Q4 2024, an increase of 8.8% compared to $2,282 million in Q4 2023[2] - The operating income for Q4 2024 was $114 million, a significant recovery from an operating loss of $87 million in Q4 2023[2] - Net earnings attributable to Seaboard increased to $154 million in Q4 2024, compared to $64 million in Q4 2023, representing a 140.6% increase[2] - Earnings per common share rose to $158.58 in Q4 2024, up from $64.67 in Q4 2023, reflecting a 145% increase[2] - For the full year 2024, net sales totaled $9,100 million, a decrease of 4.8% from $9,562 million in 2023[2] - The full year operating income was $156 million, a recovery from an operating loss of $87 million in 2023[2] - Net earnings for the full year 2024 were $88 million, down from $226 million in 2023[2] - Earnings per common share for the full year 2024 were $90.62, compared to $202.21 in 2023[2] Shareholder Returns - Seaboard declared a quarterly cash dividend of $2.25 per share, consistent with the previous quarter[3] Share Statistics - The average number of shares outstanding decreased to 971,055 in Q4 2024 from 989,615 in Q4 2023[2]

Core Viewpoint - The Schall Law Firm is conducting an inquiry into Seaboard Corporation regarding potential securities fraud, inviting investors who have incurred losses to participate in the investigation [1] Group 1: Company Overview - Seaboard Corporation is under scrutiny for possible securities fraud, which may have impacted investors negatively [1] - The inquiry aims to assess the extent of the alleged fraud and its implications for shareholders [1] Group 2: Investor Implications - Investors who have experienced losses related to Seaboard Corporation are encouraged to join the inquiry, indicating a collective effort to address potential grievances [1] - The outcome of the inquiry could lead to legal actions or settlements that may affect the financial standing of Seaboard Corporation [1]