Chicken — especially when it’s fried — might be the best junk food out there.
To make sure people in Saudi Arabia can keep ordering from places like Cane’s, the government gave out support to help farmers raise more chickens.
This caused some food company stocks to crash in 2024. But now, things are starting to change...
📈The Stock: Al Munajem(4162.SR)
Almunajem sells all kinds of frozen food. Here’s what they offer:
Fruits and vegetables → Sold under the Dari and Montana brands.
Red and white meat → They’re the second biggest in the market.
Ready meals → They control 60% of the market!
In short: If you don’t like going to the supermarket often, Almunajem makes life easier.
💰Show me The Money
In the past year, Almunajem’s stock has dropped by 30%. Why?
Remember that government support for chicken farming?
When it got easier to raise chickens, a lot more people started doing it.
That led to too much chicken, which caused prices to fall.
Lower prices → Lower profits → Stock goes down.
Supply vs Demand Curve
🥱What’s So Special?
Almunajem is a strong business that’s still growing. Its weak profits right now are only because chicken prices are low.
But we believe those prices will go back up — and when they do, profits could jump.
You might wonder: why not invest in a company that only raises chickens?
The answer is simple — we’re good at spotting trends, but we can’t predict exact timing. Some chicken-only companies might run out of money before prices rise.
Almunajem is safer. It sells other foods too, which helps keep the business running while we wait.
The stock looks cheap right now — and when chicken prices rise, you could make a lot.
See you next Sunday.