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Flash Player 9 or higher is required to view the chart Click here to download Flash Player now See all Bulls Reasons Bulls: Reasons To Buy Egg prices keep going up 100% agree Egg prices keep going up Egg prices have increased steadily in the past year and demand remains high. Cal-Maine is the country's top egg seller, with over 15% market share. View or Edit Reason 1 votes 100% agree The large short position must eventually be covered 0% agree The large short position must eventually be covered The current short position (14M shares) is at 124% of float (11.4M). This is obviously very high and presumably indicates the existence of naked shorting. History shows that the only instances of successful massive shorting are due to corporate fraud, with ENRON being... read more View or Edit Reason 0 votes 0% agree P/E below 5 0% agree P/E below 5 The current P/E ratio is at 4.9; Yahoo reports that the average P/E for the industry is 9.6. Even if you assume no future growth in earnings, the stock is underpriced. The ROI is at 70%, which indicates a well-managed, profitable company. View or Edit Reason 0 votes 0% agree Add your own Bulls Reason See all Bears Reasons Bears: Reasons To Sell Short investors may force price down 0% agree Short investors may force price down There is a very large short position in this stock and almost a war between longs and shorts. Even if the stock is an attractive investment, the short investors may keep the price depressed. View or Edit Reason 0 votes 0% agree If Egg Prices Mean Revert, Cal-Maine is Overpriced 50% agree If Egg Prices Mean Revert, Cal-Maine is Overpriced A normalized earnings valuation that assumes profitability in the shell egg production industry will eventually come in-line with expected returns from a commodity business shows that CALM's current price is very expensive relative to estimated earnings. From http://collegeanalysts.com/2008/04/27/cal-maine-calm-a-normalized-earnings-valuation/ View or Edit Reason 2 votes 50% agree Potential liability in lawsuit over chicken shit 0% agree Potential liability in lawsuit over chicken shit Litigation alleging that bacteria from the waste of more than 140 million chickens raised each year in the Illinois River watershed has polluted the land and poses a serious health threat to thousands of people. The Oklahoma's attorney general has brought litigation... read more View or Edit Reason 0 votes 0% agree Add your own Bears Reason Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

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Cal-Maine Foods (CALM) is the largest producer and marketer of shell eggs in the United States. Cal-Maine is primarily engaged in the production, grading, packing, and sale of fresh shell eggs. The company provides over 15% of the total U.S. consumption of eggs.

Cal-Maine operations are fully integrated. Their facilities hatch chicks, grow pullets, manufacture feed, and produce, process, and distribute shell eggs. Shell eggs accounted for approximately 96% of Cal-Maines net sales in fiscal 2007 and 94% in fiscal 2006. Egg products accounted for approximately 2% of the net sales in fiscal 2007 and 2% in fiscal 2006. Shell eggs are sold directly by Cal-Maine primarily to national and regional supermarket chains.

Cal-Maine also produces specialty egg products such as cholesterol free, free range chicken, and organic eggs. In the specialty category, Cal-Maine has exclusive rights to use the Egg-Land's Best and Farmhouse brands.

The company sells egg products in 29 states across the southwest, southeast, mid-Atlantic, and midwest portions of the United States.

Cal-Maine currently use contract producers for approximately 10% of their total egg production. Contract producers operate under agreements with Cal-Maine for the use of their facilities in the production of shell eggs by layers owned by Cal-Maine. Cal-Maine owns the eggs produced. Also, shell eggs are purchased, as needed, for resale by Cal-Maine from outside producers.

Cal-Maines fiscal year end is the Saturday nearest to May 31 which was June 2, 2007 (52 weeks), June 3, 2006 (53 weeks), and May 28, 2005 (52 weeks) for the most recent three fiscal years.

Cal-Maines operating income was $58.2 million for fiscal 2007, as compared to operating income of $4.5 million for fiscal 2006. The operating income as a percent of sales for fiscal 2007 was 9.7%, as compared to operating income of .9% for fiscal 2006.

Cal-Maine

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