Derek Syphrett

Notes from My Conversation with Cal-Maine CFO Tim Dawson

Jim thanks for your gracious reply - in fact hats off to you in that your reply was much more gracious than my original post.

I think your investment club will be disappointed with their decision. Low PE's can be deceptive. Cyclical stocks peak with low PE's and bottom with high PE's.... beware of buying cyclicals with low PE's after they've had a good run.

I think the CFO actually gave you the best data point for selling CALM stock... the company trades at north of $40 per chicken and their competition will sell for $13 per chicken.... that gives you some idea of how overvalued CALM may actually be.

Notes from My Conversation with Cal-Maine CFO Tim Dawson

Jim I am not sure I understood your answer to South Shore earlier. He asked you about CALM not about your returns at Primus Guaranty.

Also if Tim Dawson likes the CALM story so much why was he and several CALM insiders selling stock at an accelerated rate this month.

CALM insiders sold over $7M worth of stock in august only (1 month) vs. only about $4.5M for the prior 11 month period

I think Tim Dawson - Calmine CFO gave you a snow job son and your investment club is about to learn a few hard lessons about owning stocks with 80% short interests and CFO selling.


P.S.
I suppose that I should congratulate you on your 75% return on Primus Guaranty - though I'd have a hard time believing that anyone can understand an insurer (in this market) better than an egg company.

I know many money managers who've been confused by what these insurance companies are doing - it's great you made 75% with your play at primus... but don't get cocky... investors usually lose money right when they start bragging