Cal-Maine Foods (CALM) - A low P/E company
I had an argument over Cal-Maine Foods (CALM) on the GuruFocus message board and I thought I would re-post some of my initial feelings on this company. This is a good example of a low P/E company that I don't feel is cheap (yet). Cal-Maine is an egg supplier with a market cap of around $590 million. I came across it thanks to the Barron's interview that StockDocx99 re-posted here . One of the Barron's participants, Scott Black, recommends CALM and makes the following comment: Scott Black: My next pick is Cal-Maine Foods . The stock is 24.81, there are 23.8 million shares and the market cap is about $590 million. Cal-Maine is the No.1 egg producer in the U.S., with a 15.8% market share. In the May 2008 fiscal year, it sold about 678 million dozen eggs -- 535 million dozen were produced in-house. They have 22 million hens, whose laying life cycle is about two years. The stock fluctuates with the price of feed -- corn. In the past year it has been as high as 48.80 and as low...