rockymtnway

Cal-Maine Foods: Eggs in One Basket

I recently got out of CALM at about the same price I got in. The reason? I started tracking the price of eggs at my local supermarket. Not very scientific, but when the local price for a dozen large eggs has gone from $1.83 on 5/12/08 to 10 dozen for $10 ($1/dozen) 6/18/08, it was clear the trend was way to strong and in the absolute wrong direction. I expect next quarter's profits to be a big disappointment given the expectations and the following quarter to be dismal. Once it tanks and drops back into the $6-7 range that it's historically had before 2007, I'll get back in. I believe in the fundimentals of the company, just not the bubble it's sitting on right now.