Long Position on CALM @ $56.70 on 6/3/2015 (Momentum)

Bullish Flag on CALMCal-Maine Foods, Inc. (CALM) produces, grades, packages, markets, and distributes shell eggs.

It produces and markets specialty shell eggs, including nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Land’s Best, Land O’ Lake, Farmhouse, and 4-Grain brand names; and private label specialty shell eggs.

Cal-Maine Foods is the largest U.S. producer and distributor of fresh shell eggs across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

The company sells its products to various customers, including national and regional grocery store chains, club stores, foodservice distributors, and egg product consumers primarily in the southeastern, southwestern, mid-western, and mid-Atlantic regions of the United States.

Shares have formed a bullish "flag" following release of its quarterly results, amid rising egg prices and worries of impending shortages stemming from an outbreak of avian flu.  Bird flu is forcing farmers to kill more than 38 million infected birds, 33 million of which are laying hens, according to The New York Times. Higher share prices are expected for this stock.

 

52-Weeks Trading Range: $34.03 - $60.72

Entry Point: $56.70

Stop Loss: $53.86

Target Price: $62.37

Updates

6/23/2015 3:36:44 PM

CALM fell below stop loss. Closed at $56.70

Position closed on 6/23/2015 at price of $53.70 with a -5.29% loss in 20 days.

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