is widening to the detriment of CALM.Corn is staying over $7.00 while eggs are dropping.
Atlanta, GA Mon. Feb. 14, 2011 USDA Market News
SHELL EGGS: Daily National Egg Market-at-a-Glance
Regional prices are lower on Medium sizes, unchanged on
Extra Large and Large. New York prices are steady. Retail
demand is mostly moderate to good with improvements noted in
the South Central region following severe weather conditions.
Food service demand is light to moderate. Supplies are primarily
moderate to light for immediate trade requirements. Market
activity is moderate to instances slow. Breaking stock
offerings are moderate for the moderate to good demand. Spent
hen offerings are sufficient to heavy; demand is light to good.
All this talk about corn prices killing them yet the company clearly states that it grows 95% of its feed needs and clearly states that feed costs going up actually benefits them ?!?! So they should make more money as feed costs rise as it prices out the non integrated egg producers. As for the company missing earnings this qtr, one must think this is reflected at some point. The company has probably $175mn in cash and 20k acres of farmland.
>> company clearly states that it grows 95% of its feed …..company has probably $175mn in cash and 20k acres of farmland.<<<<
To produce 630 million dozen eggs one would have to own or farm over 200,000 acres. How does CALM feed all those hens on just 20,000 acres? CALM must be tremendously efficient farmers.
schneckden, You are mistaken CALM does not grow their feed,but they make their feed from the corn and soybeans they buy in the market.They do not grow anything only harvest eggs
Currently the feed cost are jumping up and are hurting their margins.
In the past CALM was abe to raise egg prices to compensate for higher feed cost.This is not happening and in fact egg prices have been sinking and are below yoy while feed cost are of corn and soybeans are arround 2x yoy.This may be the result of price fixing lawsuit againt CALM for their inability to raise prices while their cost are soaring
These negative fundamentals I believe will make these next 2 qt.come in way below est.and the stock is fall.
>>ethanol plants here are paying $5.40 for immediate delivery. That INCLUDES the delivery<<
You might want to phone a friend on that one.
>>I meant feed inputs are 60% grains.<<
What’s the other 40%?
You know, I actually believe you about your cocaine line. That habit has clearly caused you to lose your senses about anything substantive (pun intended). Due to your admitted drug use, you go on my ignore list.
FYI - it appears there is a size seller around in CALM. If I had to make a guess, it would be Royce, but I don't have any hard information to support that guess. At the moment, they appear to be leaning on it, but not trying to kill it. Considering that they are not being accommodated in like size, one has to wonder how patient they will be and how much of their position they want to lighten up. Who knows, they could even step away if they are afraid their weight will kill the stock and that is not their intention. The lines in the sand are $28.24 and then $28.
I quickly took Yahoo's est. for CALM which has Feb.11th for end of qt. which I see is wrong but that has no bearing on my thesis.Egg prices are low below $1.00 and last year's price and feed cost are up BIG,more that double last year's price.
I ascribed that to a typo since I already know that the actual date was 11/27/10. Most of us are susceptible to that flaw from time to time but let's let the gentleman provide his own response.
I am ordinarily not a big earnings guy because I believe it usually just a cover for securities' supply and demand factors, but since the issue of input costs and low selling price has loomed so large in recent postings here, I figured I might as well get some feedback on the matter. If you have a guess, I welcome your involvement.