Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (53966)	5/31/2014 9:57:28 PM
From: E_K_S	Respond to of 78644

You are right Paul. It's all about the cost of feed (ie corn) and one s/d be able to correlate the stock price to corn prices but it never worked for me. From the article: goo.gl Overall, Cal-Maine said it sold 268.9 million dozen eggs, a year-over-year increase of 4.6%, while the average price rose 4.8% to $1.416 a dozen.Feed cost per dozen eggs fell to about 46 cents from nearly 55 cents a year ago.Cal-Maine posted earnings of $42.6 million, or $1.77 a share, up from $30.6 million or, $1.27 a share, in the year-earlier period.Sales rose 9.8% to $395.5 million.Gross margin widened to 23.2% from 18.6%. ------------------------------- Corn prices dropped 16% and margins increased 5%. They increased their sales by developing their "specialty-egg business". It looks like they developed a line of new breakfast "egg" items at quick-serve restaurants which increased sales by 9%. Although they did some innovative marketing, the big gain was all due to lower corn feed prices. So the take away for me is, before you buy into these chicken/egg producers, look at the historical price of corn. If it is at/nears lows, then maybe a buy. EKS