Egg Prices Cracked by Bird Flu

December 29, 2022

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Egg Prices Cracked by Bird Flu

Record sales couldn’t save the financial earnings results for Cal-Maine Foods (Nasdaq: CALM), resulting in shares dropping 5.13% in after-hours trading on Wednesday.

Financials: Cal-Maine reported revenue of $801.7 million in the quarter, which was a record and better than expected. But earnings per share only hit $4.07, which was below estimates.

Details: The average selling prices for conventional eggs reached a record in the quarter because of reduced supply from the outbreak of highly pathogenic avian influenza (HPAI). Cal-Maine said there were no cases of HPAI at any of its facilities.

Glass Half Full: Despite this outbreak, Cal-Maine said that demand for eggs is still strong. Also, the gross profit margin hit 39.6% in the quarter.

Stock Price: Cal-Maine’s stock is up 64% this year, including an 8% increase in the last 30 days.

Final Thoughts: While the net income wasn’t strong enough and the industry is dealing with bird flu supply problems, Cal-Maine performed nicely. The stock’s price-to-earnings ratio, an indicator of value, is also good.

Notables

Notable Earnings Today: N/A.

Notable IPOs Today: Coya Therapeutics, Inc. Common Stock (Nasdaq: COYA), Direxion NASDAQ-100 Equal Weighted Index Shares (Nasdaq: QQQE).

Notable Equity Crowdfunding Campaigns Ending Today: Cool Beans (Republic).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).

GE’s HealthCare Spinoff Joins S&P 500

Photo by Online Marketing / Unsplash

The healthcare unit for General Electric (NYSE: GE) is set to join the S&P 500 on January 4.

Background: A few weeks ago, General Electric announced that it will spin off its healthcare business, called GE HealthCare Technologies (Nasdaq: GEHC), on January 4.

Details: GE HealthCare Technologies joins the S&P 500 to replace Vornado Realty Trust (NYSE: VNO), which will move to the S&P MidCap 400.

Final Thoughts: GE HealthCare Technologies seems to be in good shape before the spin-off, but the healthcare industry has gone through struggles in the past few months.

Dogecoin’s Late December Decline

The price of the cryptocurrency Dogecoin decreased by about 1% on Wednesday.

Numbers: Dogecoin’s price is down nearly 60% this year, including a 20% drop in the last 30 days.

The Problem: Dogecoin’s reputation (for better or for worse) is that of a meme coin. There are fewer meme coin investors in 2022 than in 2021.  Meme coins are seen as a risky investment, with is something that investors try to avoid in a bad environment.

New Developments: Elon Musk, a promotor of Dogecoin, has been consumed by the drama surrounding Twitter, which has limited Dogecoin’s potential.

Final Thoughts: Until the crypto markets get better, Dogecoin is not seen as a wise short-term investment right now. In fact, many crypto investors favor other coins instead of Dogecoin, such as Bitcoin.

Trends to Watch

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