James Cullen

Notes from My Conversation with Cal-Maine CFO Tim Dawson

Derek,
Not a problem - I thought your comments were constructive. I tried, unsuccessfully, to argue the various datapoints - cyclical stocks with low P/Es tend to be a bad idea, the price per chicken is skewed in the public/private market, etc., but that's only made me look quite wrong...

Notes from My Conversation with Cal-Maine CFO Tim Dawson

First,
I think you're splitting hairs, but sure - I was completely wrong about the direction CALM would trade in over the last four months. But does the stock price increasingput my concerns about the fundamentals driving Cal-Maine's business to rest? No.

Notes from My Conversation with Cal-Maine CFO Tim Dawson

Derek,
Sorry if I wasn't quite clear. My comments on Primus relate to SouthShore's knock that I missed out on a big gain, and he hopes I'm not being graded on this.

To clarify things, the purchase of CALM was the result of a democratic vote by my school's investment club. I voted no; the majority voted yes. CALM was thus added to the portfolio, but I have no personal position in the stock.

Also, the pickup in the rate of insider selling isn't lost on me. Just because I relay what a company's management tells me, doesn't mean I necessarily agree that their optimism will be justified.

Notes from My Conversation with Cal-Maine CFO Tim Dawson

South Shore,
If you understood how the investment club I'm involved with functions, you'd realize I have to think beyond short-term trading moves. Running a portfolio democratically makes for different circumstances - trades need to be planned ahead of time and voted on, etc., and things grind to a halt for several months out of each year. CALM still makes me nervous because of factors like that.

Right now, I only own one company - Primus Guaranty - through both the common stock and senior debt. That blend has returned 75%, so I'm not too concerned about missing out on 50% in something I don't understand on nearly the same level.

Cal-Maine Foods: Eggs in One Basket

This would be much better if you provided some forward (or even recent, such as from this quarter) talk about egg prices.

CALM Longs Walking on Eggshells

Optimum,
You are right - I did miss that. As far as I can tell (and I just did several searches), terms like "export, foreign, currency, Europe, Japan" etc. etc. do not appear in recent SEC filings.

While I regret that error, and would appreciate being informed as to what extent I'm incorrect (i.e. what % of sales are exports), I am not being employed by shorts, nor am I part of a broader short conspiracy... although hey, if they'll let me in on it...

CALM Longs Walking on Eggshells

Key words: global food crisis. CALM is domestic, and eggs are very perishable and thus not an exportable product. You can ship grains and whatnot all over, but eggs... not so much. In other words, I think this stock is being confused as a play on the secular ag boom.

CALM Longs Walking on Eggshells

Bluedog,
Cal-Maine does own its own feed mills, but it still needs to purchase the inputs (i.e. corn and soybeans) on the open market.