Cal-Maine Foods, Inc., (CALM): Founded in 1969, based in Jackson, Mississippi, Cal-Maine Foods, Inc., engages in the business of production, grading, packaging, marketing and distribution of shell eggs. It sells most of its shell eggs in 29 states, primarily in the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States. In fiscal year of 2008, the company sold approximately 678 million dozen shell eggs, which represent 15.8% of domestic shell egg consumption in the United States. The company also produces and markets value-added specialty shell eggs in the United States. Specialty shell eggs include reduced cholesterol, cage free and organic eggs. Specialty eggs brands consists of Egg-Land's Best and Farmhouse.
On July 27, 2009, Cal-Maine Foods, Inc., announced earnings for the fourth quarter and fiscal year ended May 30, 2009. For the fourth quarter, the company posted a profit of 43 cents per share on earnings of $213.6 million, compared to a profit per share of $1.54 on earnings of $235.6 million in the same quarter a year ago. For the fiscal year 2009, net sales were $928.8 million compared with net sales of $915.9 million for fiscal 2008, and net income of $3.34 per share for the fiscal 2009, compared with $6.41 per share in fiscal year 2008.
Cal-Maine Foods will be reporting its earnings for the first fiscal quarter2010 ended August 2009 on Monday September 28, 2009 before market open. Analysts are expecting a profit of 26 cents a share, which is short by 21 cents as it posted a profit of 47 cents per share a year ago in the same quarter.
Consumers are dining out less than they were a year ago, egg prices has not change much, feed price has gone down but not significantly. May be this stock is good for long term value investors but not for the short term swing traders. I am moving CALM in my SHORT sell watch list for Monday September 28, 2009 and will be watching closely to enter on the short side, unless the company posts a miraculously high profit against the expectations.
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