CALM ....I like the story

[mrmarket]

Here's a stock whose story I really like. A PE of 6.5. Return on assets of 32%. Return on equity of 46%

The big news: the latest government advice: It's OK to eat foods rich in cholesterol, drink as many as five cups of joe daily and enjoy a range of long-disparaged fats.That pronouncement is part of the new federal dietary guidelines released Thursday, the first update in five years.

You can eat as many eggs as you want...and drink as much coffee as you like. Once the word gets out, this stock is really going to move..people will eat lots more eggs.

[Lucavia123]

Love what you are saying. This company is currently trading at a nice discount. I have owned it for awhile now but sadly holding it at a decent loss.

[riverbabe]

My favorite eggs - Eggland's Best - Cal-Maine is a subsidiary. https://en.wikipedia.org/wiki/Cal-Ma...gland.27s_Best

Yes!

[Duniyo]

Here's a stock whose story I really like. A PE of 6.5. Return on assets of 32%. Return on equity of 46%

The big news: the latest government advice: It's OK to eat foods rich in cholesterol, drink as many as five cups of joe daily and enjoy a range of long-disparaged fats.That pronouncement is part of the new federal dietary guidelines released Thursday, the first update in five years.

You can eat as many eggs as you want...and drink as much coffee as you like. Once the word gets out, this stock is really going to move..people will eat lots more eggs.

I though they said eggs cause all sorts of health problems. Did they change their mind already?

[Louetta]

I was thinking options till I saw that dividend.

[billyjoe]

CALM is undervalued by almost 2/3rds and pays a dividend over 5.5%. Unfortunately their earnings have been revised down twice recently. If these new FDA standards give them a boost in earnings and we're near the bottom, CALM could double. I'm waiting to see more positive indicators. Currently, the fundamentals are outstanding.

--------------billy

[mrmarket]

If you like coffee with your eggs, then CAFE works also.

[mrmarket]

Up 10% so far...the incredible edible egg.

[seabric1]

Ha! Timely post. Last week, when i bought Hormel, I also purchased CALM. Love the chart... it's starting to form a nice little base after that recent dip. Calm and Hormel keep trading the #1 and #2 spot on IBD's group leader board. Nice.

[jiesen]

Up 10% so far...the incredible edible egg.

and up 20% on your KMI pick... you're on a roll with the 'out of the box' picks!

[riverbabe]

CALM, the "hot dog pattern". LOL

http://stockmarketmentor.com/2016/03/the-hot-dog-pattern-is-complete-heres-your-trade-on-cal-main-calm-march-02-2016/

[mrmarket]

Up 6% today..why is anyone surprised by this...eggs eggs eggs!

[billyjoe]

A few years ago they were killers. I'm hardboiling a batch right now. Laid by organic chickens, they only eat bugs.

-----------------billy

[mrmarket]

It keeps getting bigger....eggy weggy

http://www.bloomberg.com/news/articles/2016-05-03/mcdonald-s-breakfast-push-sets-off-morning-scramble-in-fast-food

[antioch6]

CALM looks like a reasonable bet at this point for me. I still prefer PETS sincle it's earnings are more stable, with the idea of getting a dividend of 3-5%. VZ and XIN also have a dividend around 4%.

I also noticed that CALM's p/e of around 5 mostly comes from the 2 outstanding quarters it had at the end of 2015. From their sec filings, you can infer that they were allowed to increase their egg prices during those quarters because of an avian influenza:

"Beginning in April 2015, our industry experienced a significant avian influenza (“AI”) outbreak, primarily in the upper Midwestern U.S. Based on several published industry estimates, we believe approximately 12% of the national flock of laying hens was affected. "

I also think it's worth mentioning that Walmart and Sam's Club make up about 30% of their business, and that their main production costs (around 60%) have been feed costs made up primarily of corn and soybean meal. If you follow the futures, you'll know corn futures are up 16% in the last 3 months, and soybean meal futures are up about 50% in the last 3 months.

I think the numbers are skewed because of the last 2 quarters in 2015. Without those 2 quarters and considers the company for the past 3 to 5 years, this has a p/e around 15-20. It's still growing and has a decent dividend on the surface, BUT if you go back and look at it's dividend history it's not the most stable. The current quarterly dividend seems to reflect the current quarterly performance. If business doesn't grow or their current increased prices on eggs don't last, the dividend at the current price per share of about $40 would be closer to 2%, 2.5% than 4%,5%.

The stock price has some downward momentum in the short term. I would use the growth into 2014 as a floor. During that year the stock went from a low of about $25 to a high around $45. It started down towards the end of the year and In 2015 it went down to around $35 before going up to $55 where it has spent a good amount of time. Somewhere between $30 and $40 would look like a "fair" price if growth starts slowing or if it has a couple (a couple is two) bad quarters...

*UPDATE*

this is now the fourth time I've tried to reply to this thread. My replies keep disappearing as I get logged out, and auto-saved content appears differently. I'd be more interested in CALM below $33 since I don't have full faith in people going out and eating more eggs yet. They would have to grow business 30-50% over the next 1-3 years to make this price worthwhile, and I don't think the current dividend is worth the wait for me. I would pick VZ if I wanted a growth story (could grow 20-100% in the next 6 years) with a 4% dividend(and increasing). PETS also has a 4% dividend although it's stopped growing. PETS would probably selloff less in an overall market selloff. Finally XIN also has a 4% dividend and has been growing business.