The egg market continues to drop and next week more. Urner barry deep in the red for egg producers. Summer unlikely to improve unless there is natural event. More birds coming down the pike weekly. No where to sell so price declines. Not good.
big beat, now what? as expected you see the smart money selling and the pedestrians all buying pre market. Gonna close down for the week. Eggs are cheap and getting cheaper. Urner barry will collapse this week. That will drive CALM to 45 in a hurry.
Hey guys if you know CALM you know there has always been a large short interest and the shorts have been paying dearly to play for many many years now, maybe 7 years. If you are trading CALM PPS, now is a good time to lean towards the short side. You know even the shorts deserve a win once and a while, after taking a beating for so long. There is 90% chance the price of eggs(as reflected by UB) is going to a five year low in the next two weeks. The mood in the egg industry seems to be fairly sanguine about this but I think investors will take a more negative bias and sell off the shares. How low it goes is anyone's guess. Monday should be exciting news as earnings will be out and maybe CALM will surprise to the upside for once. I would use any bounce if we get one to sell your stake. CALMs PPS does not always follow egg prices lock in step and it may not follow the predicted drop in egg prices, but as we all know, egg prices do impact earnings as disclosed in CALMs SEC filings every quarter and low egg prices will catch up to earnings one way or another. If you are long term holder you can surely weather a 20-30% drop but would it not be nice to sell now and buy back in 6-8 months much lower once the damage has been done? Full disclosure last year during AI I was very long CALM.