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Company: Cal-Maine Foods (CALM)
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  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/

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  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.

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  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 against several companies that include CALM.

The highly contested suit is setting the stage for final arguments at the tail end of March 2008. A ruling on the injunction could come any time.

The issue centers around the practice thousands of farmers have employed for decades in the 1 million-acre watershed. Chicken waste, clumped bird droppings, bedding and feathers are typically spread onto their land as cheap fertilizer.

If Frizzell orders an end to disposing the waste here, the ruling could lead to similar environmental lawsuits nationwide against the industry, which produced more than 48 billion pounds of chicken in 2006.

In this suit it is alleged that 345,000 tons of poultry waste produced annually are spread on fields often within a few miles of a poultry operation, oversaturating the soil with phosphorous. Bacteria from the waste then leeches into the groundwater, springs and wells.

Companies named in the 2005 complaint include Tyson Foods Inc., Tyson Poultry Inc., Tyson Chicken Inc., Cobb-Vantress Inc., Cal-Maine Foods Inc., Cargill Inc., Cargill Turkey Production L.L.C., George's Inc., George's Farms Inc., Peterson Farms Inc., Simmons Foods Inc., Cal-Maine Farms Inc. and Willow Brook Foods Inc

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