Cal Maine Foods Inc (CALM)

[jim heger]

Thanks for the board, Larry. I've been in CALM since before the announced reverse / privatization. That prospect seemed to keep a lid on the stock (as the 6 mo. chart shows) , but now it's full speed ahead as the stock price tries to keep pace with the price of eggs. If you read mrhardshell on yahoo , you'll get good analysis
& accurate est. - he's looking for about $1.90 this Qtr, I think, &
close to $3.00 Q3.He started a position at $3.50.
There seems to me to be enough 'intangible'here to give the stock a real nice run: 1) a major competitor is being closed down in Ohio, losing 4% of the nations capacity.
2) Cal Maine is the largest producer & is bringing a new facility in Kentucky into production soon.
3) responding to animal rights activists, the gov has required more space/hen, raising the cost of construction to producers, dampening supply.
4) demand appears to be increasing , perhaps due to the popularity of high protein diets.
all considered, the time may be right for this play - with a forward PE of about 3, no analyst attention, defensive cachet,
low float, etc.
good luck - hope that helps.