Cal-Maine Foods: Prepared Better Than Ever For This Brutal Downcycle
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Ragmar Rikberg437 FollowersFollow5ShareSavePlay(12min)CommentsSummaryCal-Maine Foods, Inc. remains a Buy following its latest earnings, but technicals are broken and caution is warranted after a sharp collapse in wholesale egg prices.CALM’s Q2 saw net sales down 19.4% and EPS down 52.3%, yet specialty eggs and prepared foods showed resilience and growth potential.CALM management highlights strategic diversification into specialty eggs and prepared foods, aiming for steadier, less cyclical earnings and double-digit growth in value-added segments.Key risks include persistent low egg prices and heightened bird flu threats, though CALM’s strong balance sheet and scale offer relative resilience. Milos Ruzicka/iStock via Getty Images Intro In my previous analysis, about a month and a half ago, on Cal-Maine Foods, Inc. (CALM), I wrote: The year-to-date chart shows even better that the $80–85 level is a key support area toThis article was written byRagmar Rikberg437 FollowersFollowI’ve managed my investments since 1999, gaining perspective across multiple market cycles. With a background in Economics and ongoing CFA certification, my focus is on uncovering mispriced assets that the market has overlooked. I conduct my analyses in a way that allows me to use them myself — not just casually handed-out buy or sell decisions. While I acknowledge that sentiment and technicals matter — and that today’s algorithm-driven investment environment often prioritizes them over fundamentals — I’m still guided by a fundamentals-first approach.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.