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 (57577)	7/19/2016 11:18:23 AM
From: E_K_S	Respond to of 78814

Re: CALM I have been watching this sector, specifically corn feed prices (near all time lows). CALM still reported a loss w/ such low corn prices which I thought would help earnings. However, you are right that supply/demand for eggs may/is the key now. Prices here in N. CA have fallen by 50% even w/ new production cage rules. I have seen egg prices range from $1.00/dzn to over $5.00/dzn for cage free. That will significantly impact revenues. I am not sure how to invest in the sector w/ such volatility in revenues/expenses. I have had good success w/ Ag Growth International Inc. (AGGZF) which manufactures and distributes portable and stationary grain handling, storage, and conditioning equipment. As the current corn and wheat crop harvests are at/near all time yields, demand for their storage bins have exceeded estimates. Last year they bought out their distributor and acquired a lot of excess inventory that they finally have sold down. The company now sells direct to customers. They pay a monthly dividend (around 7%) but may have peeked in the recent cycle since they are selling near their historical high market price. FWIW, I keep an AG watch list looking for different value Buys through out the cycle. Seaboard Corp. (SEB) is one I need to look at again. That was one you have owned in the past that I followed you in at/near $1,800/share when it was selling below BV. I sold my small position but that company seemed to have steady growing earnings. It currently is selling at 1.2x book. I like companies in the AG sector but it can be difficult finding value candidate buys. EKS

To: Paul Senior who wrote (57577)	7/19/2016 12:26:23 PM
From: gizwick	Respond to of 78814

That is one of my favorite companies but I always have difficulty paying 20 times more for a companies stock than I paid years ago. Got to get over that sometime. Six bagger for me then. People will always buy eggs as cheap form of protein.

To: Paul Senior who wrote (57577)	9/26/2016 8:59:11 AM
From: E_K_S	Read Replies (1) \| Respond to of 78814

Cal-Maine Foods, Inc. (CALM) - food deflation Lower pricing cuts deeply into results at Cal-Maine Foods Cal-Maine Foods (NASDAQ: CALM) swung to a loss in FQ1 after sales plummeted 61% Y/Y. "Our results for the first quarter of fiscal 2017 reflect a disappointing shell egg market with more challenging market conditions and significantly lower market prices than the first quarter of fiscal 2016," says CEO Dolph Baker. Cal-Maine's average selling price per a dozen eggs fell to $0.952 during the quarter from $2.243 a year ago, while feed costs were higher. ----------------------------------------------------------- Even w/ very low CORN prices, no pricing power for 1 dozen eggs. Wow, Their avg selling price $0.952/dozen eggs. Bought whole chickens over the weekend at $0.76/lb. It cost more for tomatoes per lb than for Chicken and/or 1 dozen eggs. Shares of CALM are down 7.52% premarket to $39.00 vs. a 52-week trading range of $39.60 to $63.25. No low ball orders today, just watching. EKS

To: Paul Senior who wrote (57577)	2/9/2017 9:49:21 AM
From: E_K_S	Respond to of 78814

Cal-Maine Foods Acquires Assets From Happy Hen Egg Farms The assets to be acquired include commercial egg production and processing facilities with current capacity for approximately 350K laying hens and related distribution facilities located near Harwood and Wharton, Texas. -------------------------------- Article does not mention the price of the deal and if it is accretive. Will look at financials after the deal closes to see how much goodwill was added and what impact it has on BV. If they did the deal on the cheap w/o too much debt, it could pose a good value buy next time there is a sell off due to some type of short term event. CALM on my watch list w/ no buys. There is commodity risk when holding such a position that is outside management's control. EKS