1. Oct. 13 th, 2015 msusia0@gmail.com Columbus Day 2K15

2. Agenda 1)Pitch (example) – Mike Metz 1)Industry & company research 2 msusia0@gmail.com

3. Pitch walk-through: (CALM) Mike Metz

4. Recommendation: Buy Share Price (as of 3/26/15): $38.81 Michael Metz Thomas Chadwick Cal- Maine Foods, Inc. (CALM:NASDAQ)

5. Thesis Leading producer Highly fragmented industry Price shock from Chinese ban Prop 2 Acquisitions Alignment between shareholders/management Strong dividend

6. Fundamentals Sector: Consumer Staples Current Price: $38.81 Market Cap: $1.87B Beta:.61 P/E: 10.16 Dividend Yield: 1/3 Net Income Paid Quarterly Last Years Annual Yield:2.87% Revenue: $1.45B EBITDA:$183M

7. Egg Industry Products –Shell Eggs –Specialty Shell Eggs –Egg Products- Liquid, Frozen –Food Service –Export

8. Cal- Maine Foods, Inc. Largest producer/ marketer of shell eggs in USA 3 Business Segments –Specialty Eggs –Regular Shell Eggs –Liquid, Frozen, or Dried Produces domestically

9. Highest Total Layers- USA

10. CALM’s Top Locations/ Brands Southwestern Southeastern Mid- Western Mid- Atlantic Egg-Land’s Best®, Land O’ Lakes®, Farmhouse®, and 4-Grain®

11. Top 10 Customers

12. Vertically Integrated

13. CALM Egg Growth

14. Top-Line Growth

15. Customer’s Health Choices

16. Risk Factors: 1.Egg Price Volatility 2.Feed Price Volatility 3.Shift to other products 4.Seasonality 5.Government Regulation 6.Consumer Demand 7.Barriers of Entry

17. Egg Price Volatility

18. Feed Price Volatility

19. Risk of Consumer’s Shifting to Other Products

20. Seasonality

21. Government Regulation/ Barriers to Entry Prop 2 California- 2014 Animal Rights Activists –Animal Concentration

22. Consumer Demand

23. CAPEX Strategy Growth and Acquisition of Fragmented Market Improved Facilities

24. Acquisitions Completed 18 acquisitions since 1989 Acquired remaining 50% of Delta Egg Farms for $17M- 2014

25. Latest Earnings Report 12/23/14 reported Q2 of 2015 Net Sales $378.6 million (6.9% yoy) 36.6 million Net Income $0.76 per share Fiscal 2014: 1.014 Billion Dozen Shell Eggs Sold

26. Financial Highlights

27. Institutional/ Insider Holdings 12/23/14 reported Q2 of 2015 Net Sales $378.6 million (6.9% yoy) 36.6 million Net Income $0.76 per share Fiscal 2014: 1.014 Eggs Sold *13G/A Filing on 1-30-2015 BlackRock Institutional purchased a 6.3% stake

28. Recent Decline Due to Misunderstanding China temporarily banned imports of US chicken, turkey, and eggs –Effective January 8, 2015 –Strain of (HPAI) in Pacific Northwest Occurs only in wild birds/ small domestic flocks Hundreds of miles away from US commercial prod. Exports to China account for 0.7% of total US shell egg production

29. Stock Performance

30. Comparable Competitors* *main peers are Rose Acre Farms, Moark LLC, Rembrandt Enterprises, Daybreak Foods CALMTSNSAFMHRLIBA Mtk Cap$1.72B$14.51B$1.83B$14.91B$2.61B P/E9.9516.436.3624.5410.14 P/B2.661.771.964.031.69 P/S1.13.41.661.59.98 Beta.61.11.621.00.72 EPS3.522.3912.412.305.15

31. Review Leading producer Highly fragmented industry Price shock from Chinese ban Prop 2 Acquisitions Alignment between shareholders/management Strong dividend

32. DCF Valuation

33. Questions?

34. Industry & Company Research Jamie Carlstedt

35. How do I find a company?

36. 36 msusia0@gmail.com Resources Bloomberg terminal ETF Database MSU library resources Morningstar.com Finviz.com Wall Street Journal Equity Research Reports Google search for things! BEST!

37. 37 msusia0@gmail.com Company website Company filings Presentations Earnings calls Other juicy info… “Investor Relations”

38. 38 msusia0@gmail.com SEC FIlings 10-K= Annual Filing 10-Q= Quarterly Filing 8-K= Current Report DEFA14A = Proxy Filing

39. 39 msusia0@gmail.com Sections of 10-K 1) Business 2) Risk factors 3) Unresolved staff comments 4) Properties 5) Legal proceedings 6) Market for registrant’s common equity, related stockholder matters & issuer purchases of equity securities 7) Selected financial data 8) Management’s discussion & analysis of financial condition & results of operations 9) Quantitative & qualitative disclosures about market risk

40. 40 msusia0@gmail.com Sections of 10-K 10) Financial statements & supplementary data 11) Changes in & disagreements with accountants on accounting and financial disclosure 12) Directors, executive officers & corporate governance 13) Certain relationships & related transactions, & director independence 14) Principal accountant fees & services 15) Exhibits, financial statement schedules

41. Value Investing Porter’s 5 forces

42. - “W hether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” Recommended Reading The Intelligent Investor by Benjamin Graham

45. Hopefully not. Professional LinkedIn photos - $20 Next Wed., Oct. 21 after our meeting