Frank Perdue, Donald Tyson and Harland Sanders all have one thing in common.

They all got rich selling chicken.

Frank Perdue was the founder of Perdue Farms — now one of the largest poultry companies in the world. Starting from a small egg farm in the 1920s, Frank worked day and night until Perdue was one of the largest chicken processors in the United States. By 1997, he had an estimated net worth of $825 million.

Donald Tyson dropped out of college in the 1950s to work for his father’s company, Tyson Feed and Hatchery. After a tragic car/train wreck killed his dad and stepmother, Donald took over the family business. Under his guidance, the corporation grew from relative obscurity to a poultry powerhouse. And today, Tyson is worth $1 billion.

And Harland “Colonel” Sanders was the founder of Kentucky Fried Chicken. He started serving chicken dinners in his gas station to raise a little extra income. After some initial success, he opened his first restaurant across the street. By the age of 74, he had more than 600 restaurants across the country. When he sold his share in the business in 1964, Sanders made $2 million (the equivalent of $13.1 million today).

Today you have an opportunity to follow in these men’s footsteps — to make a lot of money in the poultry market. I found an up-and-coming chicken producer with a No. 1 share of a growing market. It is flying below Wall Street’s radar screen. And it’s dirt-cheap at today’s prices.

This company is trading for less than Pilgrim’s Pride, ConAgra Foods and Gold Kist. And it’s in better financial shape than every one of its peers — including the mammoth in the industry, Tyson Foods.

While no business (or stock) is guaranteed to rise, people have to eat. And no matter what happens to the economy, the housing market or the stock market, chicken is one food that will remain on almost everyone’s menus.

Chicken Is Cheap and Nutritious

Here in America, we eat more chicken than any other meat. Unlike beef and pork, chicken is low in calories, sodium and cholesterol. It is a fantastic source of protein, vitamins and minerals. Plus, it is relatively inexpensive. A pound of chicken costs 50% less than a pound of ground beef.

The balance between nutrition and price is the main reason chicken consumption has grown 2.3% a year in the U.S. since 1980, while beef and pork consumption have both declined:

Of course, chicken is not just popular in the States. Take it from someone who has traveled all over the world: If there is one food you can always get — whether in Asia, Europe or South America — it is chicken.

Worldwide, 30% of all meat produced is poultry. Since the late 1990s, chicken consumption has increased in every country from Saudi Arabia to Australia to Brazil. And the total global chicken population is up over 244% since 1960 — more than sheep, cows, goats and pigs. But, despite the nice growth statistics, I have seen the massive disparity in the amount of chicken consumed in rich and poor countries.

The average American consumes 48 kilograms of poultry a year — the most of any developed country. Meanwhile, the Chinese and Russians eat only 11-13 kg. of chicken a year. And our neighbors to the south in Mexico consume only 20 kg. a year:

If you study this chart, you’ll notice the countries that consume the most amount of meat per person are the United States, Germany and Italy. Of all the countries in the world, the U.S. ranks third in terms of the highest GDP per capita. Germany is 17th and Italy is 21st. Meanwhile, Egypt, India and Indonesia are among the lowest meat consumers in the world. Not surprisingly, they rank low on the GDP per capita list: 113th, 122nd and 110th, respectively.

Clearly, there is a relationship between meat and wealth. As people make more money, they can afford to eat more meat. And as they eat more meat, chicken and meat stocks rise. For instance, take these recent examples of emerging countries as proof:

• Brazil’s per capita GDP has increased 12% in the last five years. Meanwhile, its largest chicken producer, Sadia SA, is up 733% in that time
• South Africa’s per capita GDP is up 30% since 2001. Astral Foods (one of the country’s largest poultry producers) is up over fourfold in the last four years alone
• And Thailand’s per capita GDP has risen 16% since 2003 alone. Not surprisingly, Charoen Pokphand Group (the country’s largest agribusiness conglomerate) has made investors a cool 68% over the last three years.

Tomorrow, I will introduce you to a company that could make you equally as rich as these three. It is Mexico’s leading poultry producer. And it is a company you should put on your watch list immediately.

Until then, happy investing…

James Boric
December 12, 2006

James Boric

James Boric began his finance career by successfully picking winning stocks. With time and experience, James realized his goal- to figure out how an average, everyday investor with little capital could become wealthy. The trick, he discovered, was to look to the quickest moving, most exciting and lucrative group of stocks in Wall Street history -- small-caps. Special Report: HOW YOU COULD TURN $200 INTO $1.2 MILLION!

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