According to 1949 Value Advisors' Matthew Haynes, egg producer Cal-Maine Foods is a "bargain worth pursuing" as the business recovers from a multi-year industry slump with wholesale egg prices falling.
In the August 31 issue of Value Investor Insight, Haynes lays out his bull thesis for Cal-Maine, which he believes should be worth as much as $63 per share within three years.
Changes In Wholesale Egg Prices Bullish For Cal-Maine
Over the past two years, wholesale egg prices have fallen around 60% following a bout of avian influenza in 2015. Influenza decimated the US egg-laying hen population sending prices skyrocketing but the market quickly recovered, and productivity gains drove excess production.
As prices have slumped, Cal-Maine has suffered. After earning $316 million in net income...
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