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 (57204)	4/28/2016 10:32:24 AM
From: E_K_S	Read Replies (3) \| Respond to of 78816

Re: Cal-Maine Foods, Inc. (CALM) You are right it's all about the corn price as this is the biggest expense for CALM (as much as 30%). Corn at multi year lows (below of the cost of production). That will not last but for how long? I held off on pulling the trigger but this will generate huge cash flows as long as corn prices remain at current levels. I did not realize they paid a variable dividend. If I bought it, it would be on a very tight stop as this will fall sharply if/when corn prices start to move higher. I watch the CORN ETF to get a gauge for the price (last $21.96/share). Below $22.00/share signals an ok time to Buy CALM. CORN moves fast, today +1.8%. In CA 1 dozen eggs are $5.00 depending on size but this is due to state reticulations on cage size etc. Not sure CALM sells into CA but I remember buying a dozen eggs for under $1.00. In my AG basket of stocks, I have focused on fertilizer companies, and the processor/distribution companies. I would like to AG an egg producer. Another one I have owned in the past is Seaboard Corp. (SEB) but YAHOO shows they stopped paying their dividend in 2012. They produce pork and turkey. Maybe it's time to look at some of the other diversified AG animal growers (specifically turkeys) as they eat a lot of corn too. Turkey is also supposed to be the healthy white meat. EKS