Think some others here follow it more closely. CALM only earned .10/share last quarter, which was way down from the prior year. Main problem is that Q3 is their seasonally strongest quarter. They did make some positive comments about lower operating costs in Q4, but they're still going to have an ugly comparison vs. the .70/share earned last year. Might even have trouble matching the .10/share earned in Q3. I would avoid it.
CALM has been a great investment for me. First and foremost on the LONG side during the Atkins craze. Egg prices went through the roof and this stock was a real sleeper, trading at a split-adjusted $2.50 even as egg prices climbed relentlessly higher. It was a great time to buy CALM. Investors seemed unaware of the huge rise in wholesale egg prices until the big earnings got reported. Even then the stock lagged and was undervalued for many months.
Last December I went short CALM in the 12 to 14 range. Egg prices were in the dumps, yet investors seemed captivated by the very low trailing PE. But it was a very popular short, and tough to get shares, but possible with persistance. I am only now beginning to cover my short position, even though the short interest has already dropped very substantially. Clearly the easy money on the short side has been made. But egg prices are at historical lows. Even the usual Easter rise in egg prices didn't happen this year. Big losses are certain to be reported for the May quarter, and probably the August quarter as well. I'll finish covering my short position in the coming weeks and months.
Eventually the market should correct the current supply and demand imbalance in eggs. When egg prices start an upswing, it may be time to go LONG. But I won't go long again unless the stock is significantly lower. I doubt very much we'll see prices rise again anywhere near as much as they did during the Atkins diet craze.
For excellent information on egg prices, visit the NCDA web site ....
Also, for historic prices and seasonal trends, I can highly recommend the Urner Barry historical price guide. It proved to be an excellent investment for me.
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