Cagle's Inc. (fka CAGAQ)

[zsvq1p]

SSKILLZ1... 3rd Q will be out about week and half... current pps $8.50

This might be an OK stock to buy right now in the down economy for several reasons.

1) Company Management has suggested a buyout at $9.00 with large shareholder thinking it's too low.

2) Last year's one time depreciation expense will make Y on Y improvement
a. Corn price avg'd somewhere under $4.00 thus a 7% increase vs 2Q... making for only slightly higher COGS...
b. Revs should come in slightly higher as Bureau of Labor Statistics indicate

So my guess is...

Revs = $78 mil
Gross profit = $5.8 mil range
Q's EPS of $.13
ttm EPS of about $.50

The 4Q will be tough as higher corn price but I believe revs to increase too...

On DD not done is effect the drop in dollar will have on this market... I predcit good... but don't know.