roguedolphin, most memorable for me is when CALM tried to go private back in August '03 just as egg prices were starting to soar. Luckily shareholders protested strongly, and finally management cancelled its plans. The stock rose 700% in the following 6 months as egg prices went through the roof. Even today, with egg prices back in the dumps, and CALM reporting 2 sequential losing quarters, the stock is remains up about 300% from the time of their going private announcement. Stockholders, and probably even the insiders, would have been robbed if they had been successful. At the time their stock was very thinly traded, and grossly undervalued. The stock has since split 2 for 1 and trades about 30x the daily volume it did in August '03. Insiders have been able to sell all the shares they ever wanted on the open market due to the strong following the stock now has. Of course with the Company now losing money, the stock appears very overvalued, and is a favorite for the shorts. I think TREK management is making a big mistake, but so be it.
JACKSON, MISS (August 18, 2003) -- Cal-Maine Foods, Inc. (NASDAQ/NM:CALM) announced that the Company's Board of Directors approved a 1 for 2,500 reverse split of the Company's common shares in order to effect taking the Company private. If Cal-Maine's shareholders approve the proposed reverse split, each shareholder owning less than 2,500 shares of existing common stock will receive cash in the amount of $7.35 for each share of existing common stock. The transaction has been unanimously approved by Cal-Maine's Board of Directors at a special meeting held Saturday, August 16, 2003, following the unanimous recommendation of a Special Committee of independent directors. The transaction was recommended by the Special Committee following negotiations between management and the Special Committee regarding the terms and conditions of the transaction. Houlihan Lokey Howard & Zukin Financial Advisors, Inc. served as financial advisor to the Special Committee and provided its verbal opinion to the Special Committee that as of August 16, 2003, the consideration to be received by public shareholders of the Company, other than affiliated shareholders and the Company's Employee Stock Ownership Plan, is fair from a financial point of view.
The $7.35 per share cash consideration represents a 33% premium over the $5.52 closing price for the Company's common stock on July 11, 2003, the last day of trading prior to the Company's announcement that it had established a Special Committee of its Board of Directors to explore a "going private" transaction.
