OT
Normal fundies don't apply to CALM, imo.
Their business depends on egg prices, which traditionally rise and fall in multi-year cycles. When times are good, like right now, they make a fortune. When times are tough, they barely scrape by. Just look at the latest earnings report and you'll see they made over $100Million in Net profit this year, in only 3 qtrs. But last year, those same 3 quarters only bagged roughly $10 million(if my memory serves me).
The stock price swings from $5/share during the hard times to $40/$50 share when times are good. That's why there are so many short right now, because, odds are, they are only going to see these good times for another couple of quarters at the most. Taking the bottom line numbers and balancing them out for these swings, probably makes the stock worth the low to mid teens - but thats not how the 'game' is played!!
When times are tough, its often very difficult to buy the stock in size, as its held very close to the vest by those who trade it. I don't really follow the stock but this is what I've been told by someone who does. You may have to pay a huge spread when the stock is cheap, if you want to buy it in size. Then you might have to wait a year or 2 to see any appreciation. If you time it right, its very lucrative but there are plenty of other stocks that react similarly that have much better floats and trading tendencies.
fwiw....
TO |
