Tyson Foods Inc. Begins the First Day of its Relief Rally

Model Portfolio Daily Update:  November 22, 2010

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Of Note:
Tyson Foods Inc. (TSN), a stock highlighted in the latest Ascendere Weekly Ranking Update as primed for a relief rally, reported a good quarter today and ended the day up 6.14%.  Barring some unforeseen spike in grain costs, various cost cutting measures and ongoing price hikes will likely be good enough to generate continuing returns on capital, and downward earnings revisions for FY2011 are probably done for the time being.  Also impressive is that the company continues to pay its debt down.  If recent price action of other upward gaps are any indication, investors may find at least a slightly better entry point at some point.

It is always nice to see our model long portfolios up for the day (+0.42%), especially when the market is down (-0.16%).  But it is best not to get too cocky; days like this have to more than make up for the days when the opposite occurs.

About this report
This daily update is a supplement to a monthly report dated October 31, 2010 that details the model portfolio strategies of Ascendere Associates LLC (“Ascendere”).  For more information, please see our list of frequently asked questions, suggested tips on using our newsletter or an interview with us on Covestor Live.  Please see our disclosures and disclaimers at the back of this report.  See also our long-only model based on actual trade data.