I have liked the fundamentals of most protein producers for over a year. The only thing stopping me from going long was the rise in feed input costs. However, that may less of a concern now. The US grain/bean crops went into the ground in pretty good shape, and there are a series of weather fronts moving through the Pacific that should keep it there for awhile.
One I have followed is Cal-Maine. CALM is the largest, and only publicly traded, egg producer. I haven't done all the DD yet, but here is the basic commodity story. CALM generally follows egg prices. Eggs have gone us a fair bit in the last few months, buy CALM hasn't. The company is cheap on normal valuation measures, and pays a nice dividend. More to come....
0 comments:
Post a Comment