As of May 15, short interest has risen to 8.167 million shares. Some folks have a lot of tolerance for pain. Even without the bird flu impact, long term prospects are good as egg consumption will rise in response to recent thinking regarding health effects. Market price increases due to the flu will tend to be sticky for some time after the disease has run its course.
The rise was kind of quick, but I think that there's more room to move. I first bought this stock when the nutrition folks decided that eggs were good for you after all. As that kind of thinking gets generally accepted, consumption is likely to rise. Future growth prospects more than justify the current level. PE is only about 16.
Earnings released this morning look very good. The company is making great progress in turning their investments into cash generating assets. Buyback is impressive, and justified since current price is low compared to NAV and future earnings capability. Dividend increases will come in due time. I just hope that they recognize when the home market gets to the point where it's better to return cash to the shareholders instead of investing in more properties.
The Nasdaq site shows short interest increasing from about 6 million shares on 3/31 to 7.6 million shares on 4/15. This must be because the shorts think that the bird flu epidemic will negatively impact CALM. They should have done their homework.
Stock is down more than 2% this a.m......My guess is that, other than a little due to the market's negative open, most of the move is in reaction to reports of more bird flu. CNBC, in particular, because they listed CALM as one of several companies potentially affected. There was no mention of the fact that CALM has not had any incidents (at least not yet).
I hope that you're right, but don't expect to get away without a cut. In any event, we should know soon, as the announcement is about due.
I expect that they will cut the dividend, as indicated by the CEO in his recent letter. But, with oil prices stabilizing and the delay in delivery of the ships, the cut need not be drastic. A nice level would be around $0.25 per share.
This doesn't look like massive dilution to me....adding about 6% to the share count. And I expect that the new funds will be invested to generate enough income to actually add to eps.
Now and then you can get burned by the market when you enter a trade request with a limit on price, but without specifying a minimum number of shares. Most of the time it works OK, but I've had cases where I put in an order to buy or sell several hundred shares and had only a couple of shares trade because the stock moved at just the wrong time. With a low priced, inactive, stock you have to be particularly careful.