Smithfield Foods (SFD) was upgraded from Underweight to Equal-weight at Morgan Stanley. Valuation call, as the stock is 18% below its $24 price target. Consensus estimates remain too optimistic, however.

But Iben has bet on another part of the agricultural sector: food processors Tyson Foods (TSN) and Smithfield Foods (SFD). "These are strong franchises that provide protein for the world and have been big beneficiaries of global growth. As global [gross domestic product] rises, so does demand for protein. And they are cheap."

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a little speculative but company is now beginning to sell to China. Also has had a rather large increase in insider buying.

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Smithfield Foods (SFD) was downgraded from Overweight to Neutral, JP Morgan said. Lower hog prices should significantly weigh on earnings.

Director, Paul Fribourg, continues buying up shares.

And finally, we have Smithfield Foods making this week's list. At the nation's top pork and beef producer we find President and Chief Executive C. Larry Pope buying 10,000 shares worth $293,060. When the leader of a company starts buying shares for his own pocket, investors should take notice.

The stock price has been on a rollercoaster ride lately, but overall down 16% in the past 3 months. But recently directors have been showing faith by buying more shares as well. On top on Larry Pope buying 10,000 shares, another director, Paul J. Fribourg who runs ContiGroup, acquired a 6.3% stake in the company almost one month ago when the stock was nearly as low as it is now. And that purchase was the first insider purchase made in over two years.

Now Fribourg is at it again. On Oct. 16th he said his firm, ContiGroup, will buy up to 1,505,000 shares of Smithfield stock over the next year.

So what’s with all these insider purchases? The directors are telling us SFD is too cheap and significant catalysts are ahead. Take, for example, Smithfield's deal to supply China with 61 million pounds of pork. It doesn’t seem that significant considering China eats 100 billion pounds of pork a year but imagine what deals might lay ahead. The market share available to SFD is enormous, and would substantially expand the company. The three huge purchases in under a month could be a sign they are planning big deals with China, and they want their money in Smithfield.

Smithfield Foods SFD
China consumes 100 million pounds of pork per year; Smithfild just signed contract to provide 61 million pounds.

Tried to take over IBP, which could have hurt family farms, outbid by TSN.