CAGAQ Cagle's, Inc. Common Stock 11/7/2012 100 Bankruptcy Plan Effective. Equity interests cancelled.


http://www.otcbb.com/asp/dailylist_detail.asp?d=11/06/2012&mkt_ctg=ALL

http://www.sec.gov/Archives/edgar/data/16104/000110465912034258/a12-11621_11512b.htm

It trades on the greys. Almost no one will touch that on IHUB.

That almost covers the current $74 million in liabilities. The only problem is that it is $55 million up front, which still leaves equity out of the money by about 4 bucks a share. The remainder to get flush comes after a note is paid out over 2 years. An unsecured note. Creditors will still not be paid in full (maybe) until 2014, then equity may get a little. Close call not knowing the professional's cash burn, plan of liquidation costs, etc.

Kinda looks like a trap.

I'm surprised no one in ihub is talking about this stock. Its not even being pumped and its gone up almost 3000 percent on good volume in 2 days. I didn't realize the asset sale news is that big.

Cagle’s Inc. (CAGAQ) (CAGAQ) is seeking court permission to sell virtually all of the poultry producer’s assets at a bankruptcy auction after accepting a bid valued at about $72.3 million from an affiliate of Koch Foods Inc.

Cagle’s will ask U.S. Bankruptcy Judge Joyce Bihary in Atlanta, where the company is based, for approval of guidelines to govern the proposed auction at a hearing scheduled for April 4, according to an order filed yesterday.

The agreement with closely held JCG Foods LLC “will be ‘tested’ in the marketplace” through the auction process “to ensure that the estates realize the maximum value” for the assets, Cagle’s said in a March 23 court filing.

Cagle’s wants to hold an auction on May 10 followed by a hearing the next day to seek approval of the sale, according to court papers. Rival bidders would have until May 4 to submit offers under the proposed timetable.

“It’s a nice strategic fit,” Joe Grendys, who owns both Park Ridge, Illinois-based Koch Foods, the seventh-largest U.S. chicken producer by pounds, and JCG Foods, said today in a telephone interview. The deal would give Grendys a broader customer base and more supply. Cagle’s assets include two processing plants, a feed mill and a hatchery.
Poultry Losses

JCG Foods agreed to pay $37 million plus the value of inventory and accounts receivables, which stood at about $43 million as of Jan. 28, and minus post-bankruptcy payables and accrued expenses that totaled about $7.7 million, according to court documents.

About $55 million would be paid in cash and the remainder would be paid with a promissory note guaranteed by Grendys, according to court papers.

Cagle’s sought court protection on Oct. 19, listing more than $50 million in assets and less than $50 million in debt in its Chapter 11 petition. Koch Foods was among companies that cut production last year amid rising feed costs, weaker consumer demand and lower prices for chicken products. Other chicken processors such as Cagle’s, Allen Family Foods Inc and Townsends Inc. entered bankruptcy and worked to sell assets.

U.S. chicken processors on average lost 10 cents a pound in 2011 and have returned to profitability this year, according to a report today by Stephens Inc.

The case is In re Cagle’s Inc., 11-80202, U.S. Bankruptcy Court, Northern District of Georgia (Atlanta).

To contact the reporters on this story: Michael Bathon in New York at mbathon@bloomberg.net; Shruti Singh in Chicago at ssingh28@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

ok, LUXD. a few interesting pennies I've recently
started researching (plays not many are on yet):
PHIE. FLKI. IHCH. MMAB. ACGX...

Check out LUXD if you want to try a penny merger play. I think its as solid as they get. Still a risk there but the reward could be big. Take it easy friend.
Ed

looks like a no-play if it's on the Grays.
Gray still as CAGAQ. There must be a reason,
they don't want us getting these too cheaply.
It may be a buy even at 4.00.

I've just been trading. Lately in JEF and
picked up some TECUA Friday in the low 4's.
I don't visit ihub as often anymore.

will be CAGAQ tomorrow
on dailylist
MK

Ill keep it on watch. I know you have found a lot of hidden gems man. Keep up the good work.
Ed

seems to be on the greys, not the pinks.
no bid/ask. may be a no play, will still radar.

http://www.otcmarkets.com/stock/CAGLA/quote

Thanks Ronnie

hasn't moved to the pinks yet.
i wonder if it will at this point.
still halted on the nyse.
if nothing soon, will contact co.

Why no bid or ask on this? TIA

this is going to be the best bk play in years.
there are only 4.1 million shares and 29 million
in current Shareholder Equity.

In its Oct. 19 filing in U.S. Bankruptcy Court in Atlanta, Cagle's reported assets of $92 million and debts of $63 million.
Its largest unsecured creditor was listed as ADM Milling Co. of Decatur, Ill., which is owed $3.7 million.

http://www.bizjournals.com/atlanta/news/2011/10/20/chicken-producer-cagles-files-chapter.html
(bk filing info)

http://newsblaze.com/story/2011101914420200001.pnw/topstory.html

Cagle Family Withdraws Offer to Purchase Cagle's Inc.

Atlanta, Georgia (March 11, 2008) - Cagle's Inc. announced today that the group consisting of James Douglas Cagle, the company’s President and Chief Executive Officer, his two sons, and a limited liability company controlled by members of the Cagle family has given notice that it is withdrawing its offer to acquire approximately 36% of the company’s stock. The principal reason cited for the withdrawal of the offer was the deterioration of credit markets.

The offer contemplated a merger between the company and an entity created by the Cagle family group. Pursuant to the offer, the Cagle family group would have paid the company’s shareholders $9.00 per share in cash.

Cagle’s, Inc. is engaged in the production and processing of fresh and frozen poultry products. The common stock of the company is traded on the American Stock Exchange under the symbol CGLA.

I can understand your sentiment.. LOL

They had much lower revs the I predicted.

Cagle's loss cut to $1.8M in Q3 Thursday January 31, 5:12 pm ET

Cagle's Inc. reduced its losses in the third quarter of fiscal 2008.
The Atlanta-based poultry company had a net loss of $1.8 million on $66.9 million in sales, compared with a net loss of $3.2 million on $56.4 million in sales in the third quarter of 2007. Loss per share was 38 cents, compared with a loss per share of 67 cents in the third quarter of 2007.

Feed ingredient cost increases hit $3.9 million in the third quarter of 2008.

Cagle's (AMEX: CGL.A - News) noted cost of sales and earnings continue to be unpredictable as poultry markets, feed ingredients, energy, packaging and freight costs react to global supply and demand pressures.

I do not like CGL-A at the moment, I'm very concerned,as all these food companies seem to be having problems lately. Trying to avoid the sector right now. Could be wrong though.

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.

Wynnefield Announces Opposition to Proposed Cagle's Buy-Out

Monday December 24, 8:00 am ET NEW YORK--(BUSINESS WIRE)--The Wynnefield Group, a long-term stockholder in Cagle’s Inc. (Amex: CGLA - News) that currently holds approximately 4.7% of the Company’s outstanding shares of common stock, today issued the following letter, which it has mailed to the Cagle’s Special Committee of Independent Directors: December 21, 2007

VIA FEDEX

The Special Committee of Independent Directors
c/o Panos J. Kanes
Cagle's Inc.
2000 Hills Avenue NW
Atlanta, GA 30318

Dear Members of the Special Committee:

Wynnefield Partners Small Cap Value, LP, Wynnefield Partners Small Cap Value, LP I, and Wynnefield Small Cap Value Offshore Fund, Ltd (collectively “Wynnefield”) own 217,400 (or approximately 4.7%) of the outstanding common shares of Cagle’s Inc. (Amex-CGLA). We are long-term holders of the shares, having invested in the Company for more than six years.

We are writing to express our opposition to the proposed acquisition of the Company for $9.00 per share by James Douglas Cagle, George Douglas Cagle, James Douglas Cagle, and the Cagle Family Holdings LLC, and to request that the Special Committee fulfill its fiduciary duties to act in the best interest of the Company’s minority shareholders by rejecting this proposal.

The proposal is inadequate for three primary reasons:

1. It does not reflect the true intrinsic value of the Company;

2. It does not recognize the substantial value of the Company's just-completed debt reduction program - a program whose costs were borne by shareholders and whose benefits would be seized by the Cagle family; and

3. It does not reflect the full long-term value of the Company, as evidenced by industry fundamentals.

Proposed Price Substantially Undervalues Company

Measured by price-to-book value, the proposed price substantially undervalues the Company.

For example, the book value of the Company was $48,081,000, as of September 29th, 2007. With 4,664,000 shares outstanding, this translates to a book value of $10.30 per share. Thus, the Cagle family proposal represents price-to-book value of only 0.87x . By way of comparison, the Pilgrim’s Pride purchase of Gold Kist provided those shareholders with 2.2x book value.

Cagle Family Seeks to Seize Benefits of Debt Reduction Paid by Shareholders.

Over the last five years, the company has done an excellent job in reducing net debt as indicated below:

2003: $85.37 million in net debt at year-end
2004: $37.46 million
2005: $29.13 million
2006: $28.44 million
2007: $18.57 million
As of September 29, 2007, the Company had $11.19 million in net debt.

While we applaud the company’s debt reduction efforts, we are troubled by the timing of the proposed going-private transaction as the Cagle family would reap substantial benefits of acquiring a company with significantly lower debt levels – an achievement gained at shareholders’ expense. Shareholders who bore these costs for several years should receive commensurate benefits. The proposal would, instead, largely reward the Cagle family.

Industry Fundamentals:

The current valuation of chicken industry stocks appears to be overly pessimistic, even recognizing the recent pullback in breast prices. Today, industry gross profits per pound at the commodity operator level are only 2-3c below the 5-year average gross profit per pound, and remain well above break-even, with historical troughs of -3c/pound. Additionally, prices for chicken breasts and legs have remained stable in November.

In past earnings press releases, Cagle’s management has commented on high feed prices, but in fact these might be helping – rather than harming – the company’s profitability. For example, higher corn prices have actually supported higher chicken export prices, even as those corn prices pushed up domestic chicken prices in Russia and in China – making Cagle’s exports even more price-competitive in those important markets. While leg quarter prices are down to 42c from historic highs this summer, they remain well above the 5-year average price of 30c.

In conclusion, even though there may be short-term challenges to the Company and the industry, we believe in the long-term prospects of Cagle’s as a public company.

Selling this company on the cheap to inside shareholders is an unacceptable outcome. As fiduciaries to our own investors, we can not support selling our shares to the Cagle family for such an inadequate price. We will vote all of our shares against the transaction should the Special Committee of independent directors approve this proposal. We urge the Board not to support this transaction at the proposed price and to seek an effective means to enhance value for the Company’s outside shareholders.

Sincerely,

Nelson Obus
President
Wynnefield Capital, Inc.


ABOUT THE WYNNEFIELD GROUP:

The Wynnefield Group is a long-term investor in Cagle’s, having first invested in the company about six years ago. The Wynnefield Group includes several affiliates of Wynnefield Capital, Inc. (WCI), a value investor specializing in U.S. small cap situations that have company- or industry-specific catalysts. WCI was established in 1992. Its founding partners, Nelson Obus and Joshua Landes, held senior research and institutional equity positions at Lazard Freres & Co. during the 1980s, and the initial Wynnefield investors included many of their colleagues at Lazard. The fund has grown to approximately $450 million under management. Nelson Obus currently serves on the board of directors of Layne Christensen Company (NASDAQ: LAYN - News), serving on its audit committee and compensation committee.

Contact:
Kekst and Company
Eric Berman, 212-521-4894

Buy at around 8 with offer at 9 makes for about a 10% return...

Cagle Family Proposes to Purchase Cagle's, Inc.
Shareholders Would Receive $9.00 Per Share

ATLANTA, Nov. 12 /PRNewswire-FirstCall/ -- Cagle's, Inc. (Amex: CGL.A) announced today that it has received an acquisition proposal from a group consisting of James Douglas Cagle, the company's President and Chief Executive Officer, his two sons, who are both Vice Presidents of the company, and a limited liability company controlled by members of the Cagle family. The Cagle family group currently owns approximately 64% of the company's stock, and, pursuant to the proposal, the Cagle family group would acquire all of the other stock of the company.

The proposal contemplates a merger between the company and an entity created by the Cagle family group. Pursuant to the proposal, the Cagle family group would pay the company's shareholders $9.00 per share in cash, which represents a premium of 21.6% over the November 9, 2007 closing price.

The company's Board of Directors has appointed a Special Committee of its independent directors to review the proposed transaction and other alternatives on behalf of the company's minority shareholders. No assurance can be given that any transaction will take place on these or any terms.

To finance the transaction and provide ongoing working capital to the company if the proposed merger is completed, the Cagle family group is working with AgSouth Farm Credit, ACA to finalize a financing commitment.

The Cagle family group has indicated that it is interested only in acquiring the publicly held shares of the company, and has no interest in selling its shares in the company pursuant to a competing offer.

Cagle's, Inc. is engaged in the production and processing of fresh and frozen poultry products. The common stock of the company is traded on the American Stock Exchange under the symbol CGLA.

OK so da advisor just came home with chicken priced at $1.15/lb

so I say that in this point in time PPS at forward PE at 10-12 after next report and foward PE of 6-8 two reports from here..

 
 Period........  	Revenue 	COGS	%	S&DEL	G & A	other	Op Inc	Int Exp	Other	taxes	Net Inc	OS Dil	EPS	TTM 
 4Q 08 (03/31/08)	$78,000	$71,292	91.4%	$2,755 	$1,800	0	$2,153 	($360)	$50	$830	$1,013 	 4,664 	$0.217 	$1.112  
 3Q 08 (12/31/07)	$78,000	$71,292	91.4%	$2,505 	$1,800	0	$2,403 	($360)	$50	$830	$1,263 	 4,664 	$0.271 	$0.679  
 2Q 08 (09/30/07)	$76,067 	$69,527 	91.4%	$2,277 	$1,759 	$6 	$2,498 	($356)	$59 	$827 	$1,374 	 4,664 	$0.295 	($0.261) 
 1Q 08 (06/30/07)	$71,862 	$65,660 	91.4%	$2,128 	$1,358 	($28)	$2,744 	($368)	$23 	$863 	$1,536 	 4,664 	$0.329 	$0.815  
 4Q 07 (03/31/07)	$61,268 	$58,731 	95.9%	$2,130 	$1,670 	$1 	($1,264)	($378)	$47 	($574)	($1,021)	 4,721 	($0.216)	$0.115  
 3Q 07 (12/31/06)	$56,374 	$57,454 	101.9%	$2,031 	$1,564 	($2)	($4,673)	($408)	$148 	($1,776)	($3,157)	 4,721 	($0.669)	($0.333) 
 2Q 07 (09/30/06)	$62,017 	$61,975 	99.9%	$2,553 	$1,106 	($9)	($3,608)	($576)	$18,797 	$8,114 	$6,499 	 4,740 	$1.371 	 
 1Q 07 (06/30/06)	$54,277 	$54,130 	99.7%	$1,953 	$1,314 	($53)	($3,067)	($692)	$1,006 	($991)	($1,762)	 4,743 	($0.371)	 
 	 
 

Predicting Revs appears to be easy here...

Source for US Meat prices: http://data.bls.gov/cgi-bin/surveymost?ap

This company will be easy to predict going forward...

Humm? now may be in buy range...

but expected and well deserved given the earnings pr.

That was ugly...

This will be a buy after the dump! Gonna buy when it hit 7's

you don't hang around long do ya? LOL

anyway.. I took over the OFI board...

http://investorshub.advfn.com/boards/board.asp?board_id=3935

Welcome any comments...

Giff I disagree they had not a great quarter this quarter. I expected better then .29 and revs 76 million I got neither. They also have some commentary in the PR that you can only take as a negative. Anyways I sold in the upper 9's and took my loss and moved on. Hope this helps.

A sequential decline in earnings in their seasonal strong quarter is not really what I had it mind.

going forward still looks good at 10...
makes for possible forward PE of 8 or so next 12 months... at first look... IMO

As expected and now they have many negative TTM's...

Cagle's Inc. Announces Results for Second Quarter Ended September 29, 2007

Cagle’s Inc. reported a profit of $1.38 million or $.29 per diluted share for the second quarter of fiscal year 2008 compared with a profit of $6.5 million or $1.38 per diluted share for the second quarter of fiscal 2007. For the first six months of fiscal 2008 net income was $2.91 million or $.62 per diluted share as compared with a net income of $4.74 million or $1.00 per diluted share for the same period of fiscal 2007.

The Company’s second quarter revenues increased 22.6% while the equivalent average quoted poultry market improved 23.4% relative to the second quarter of fiscal 2007. For the first six months of fiscal 2008 our poultry revenue increased 27.2% as quoted markets improved an average of 37.6% during this time period.

For our second quarter Cagle’s cost of sales per pound increased 12.2% as compared to the same period last year influenced by continued escalation of feed ingredient pricing and a $2.1 million asset valuation adjustment to an inactive facility recognized in the second quarter of fiscal 2007. Our cost of feed for the second quarter was 35% higher than the same period last year.

As we enter the holiday season poultry markets are reflecting a seasonal downturn exacerbated by increased poultry supply. Additionally, Russia’s banning of imports from 17 industry plants has negatively impacted the market. Feed pricing remains relatively stable as crops are mostly harvested and grain markets begin to look forward to next year.

Cagle's Inc.
/s/ J. Douglas Cagle
J. Douglas Cagle
Chairman, CEO

Thank you SSKILLZ1

as I have no doubt that If one of the bigger Poultry companies wanted to purchase this company, that $50 million Market cap is verrry Low. They have several plants and equipment, and customers certainly worth more the current mkt cap.... as I think they will continue to have strong Balance sheet. I think one can own this stock with little long term risk.. as history will repeat.. IMO.

Short term however, given last year NI of $6.5 will be damaging... They will not match last year's number... that $6.5 was due to sale of Cagle’s Keystone LLC for The purchase price is $28,000,000 cash...

I conclude that it will take between $85 to $90 million in revs to get a TTM positive NET Income. But based on earlier post about rev predict using US data, the $85 + will not happen.

Theory..that last pop 8/4/07 was on the 10Q PR report but likely MM or one trader pushed it up on low float and fact this stock is not widely traded... Now they took profit, maybe? and what will this commodity price do this next Q? I do think bird price can go higher! Am I missing a capacity expansion or something?

I'm not sure folks will like what they see after report compares Y on Y. I'm gonna wait a bit here...

My food stocks are.....

LWAY - Just covered short from $19 high... looking for new long position.
GXYF.OB - buying on new management and future stable sales resulting is consistent NI.. and subway founder to sneak something big in this coming year.
VSF - slow accumulation buying on new mgt to make mark; waiting 12/06 non-cash write off to go away with continued earnings... ahead of the crowd on this one.. is timing good?
SENEA - Good strong safe stock for all the reasons you know
MGPI - Shorts have started to cover (3 months now); was high on Ethanol.. but this is food grade.. I think MGPI to have good forward Q's...
PSTA - Three solid Q's and PE to replace last year non-cash write off. Investor Summit presentation could get watchers into buyers after this 10Q.
OFI - I like and will likely take a position soon. I'm sure OFI will see 6 again.


No need to tell me you "could be wrong"...LOL.. Picking any stock, at any time, anyone can be wrong! It is everyone's own responsibility to decide when to click a buy or sell.

And always appreciate a good opinion.

GIFF, The stock is trading at book value, so from an assets Perspective it is cheap. Generally stock like this go in streaks means we get several good quarters in a row, not just one. Q2 is generally their best quarter revenue wise. q1 is generally a seasonally weak quarter. The wildcard here is gross profit margins. I believe they continue to improve for the coming quarters if, I'm correct it will make a good trade. I'm not looking to hold this for long-term gains I want to make a quick buck. The company doesn't give guidence as far as I know. even at .33 considering the balance sheet if that is annualized we are trading under an 8 PE (fully taxed) with a strong balance sheet. That is my definition of cheap.

I think they will post higher revs in q2 versus q1, which will work out to higher Net income (greater then .33). If I'm right the stock will get a pop, I take my nice profit, and that's how we make money. If I'm wrong, I will take my loss and move on, I brought 7 new stocks todays, CGL-A is not my favorite of the 7 I brought today. SENEA is my favorite food play followed by OFI, then CGL-A, then GXYF.OB (Don't own GXYF.OB) in that order. I think OFI Has the most potential of the group in the long-term in my opinion. Granted I could always be wrong though.

SSKILLZ1.. why do you like this one?

cause I think after this report... they may lose PE....

unless the revs are Higher expected.... Does the company give guidance?

Looking for a poultry index of some type...

maybe this?

http://data.bls.gov/cgi-bin/surveymost?ap
Whole Chicken, Per Pound - APU0000706111

So looks like the retailer passed on increase to consumers and flat in 3Q...

PERIOD ENDING..   30-Jun-07 31-Mar-07 30-Dec-06 30-Sep-06  
 Total Revenue..... 71,862   61,268   56,374   62,017

Just started looking at this one... Seems they are going to need some strong revs again like last Q... We'll give ya a full view soon.. and maybe a predict..

Nice Board. I brought in today at $10.00. I believe their is significant upside if they deliver the quarter I expect this quarter. Of course that is always and IF. But I believe they will do better then the .33 they earned last quarter. All is just my opinion, and I could always be wrong though.

Eat mo Chikin....