SouthShore

Notes from My Conversation with Cal-Maine CFO Tim Dawson

According to your previous article you did NOT think CALM was worth adding to a portfolio. In case you thought no one would notice, here is what you said, ...

"Should You Put Your Eggs in Cal-Maine's Basket?
by: James Cullen
posted on: April 29, 2008

As [James Cullen] argued previously, [James Cullen] do[es]n't believe this is a good time to invest in egg producer Cal-Maine (CALM) because:

The business is highly seasonal
The business is highly cyclical
It is a commodity business allowing for no real competitive advantages"
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However, in your current article (Aug 12th, 2008) you now state, "From the long pitch that led the BC Investment Club to purchase shares...". This appears contrary to your prior position.

In fact, your disclosure above says you have "No Position" in CALM. So if your are representing the BC Investment Club, then you should ethically disclose your actual position. If you are not speaking for them, then you should make that clear.

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On April 18th and 29th, the dates of your previous two blogs on CALM, shares were selling for $30. That's when you said essentially - Don't buy, Don't buy.

Today's price is almost $44 and you could have collected at least the $0.516/sh dividend. That's about $14.5/sh on $30/sh invested.

I hope that your Prof's at BC aren't grading you on this stuff.

Cheers,
(Disclosure: Long until CALM tops)