+ Watch WWAV
on My Watchlist
Cause you guys said so
More and more people are starting to look for healthy whole organic foods. Lot of potential growth
Trend of whole food! healthy food!
Spun out of Dean Foods the company is on its own now and doing quite well. Earthbound acquisition gives it another line to take to grocers and expand its reach. China venture could be something big over the next few years. Thumbs up.
Healthy eating stuff. It's inevitable and these people are growing the business.
We can't help ourselves in the US. We love our frantic lives and we love to pay as much money as we can for Health. WhiteWave, though a comically terrible name, appears poised to capture our money for this ongoing trend. I'm in.
SURE!!! IT WILL OUTPERFORM S&P500
I am not getting this one. For growth stocks that aren't earning much. I like to look at price to sales and compare to industry average. Then I look to take into account the economic moat and possible future trends to increase the five-year time horizon. Will it still be growing in five years so no reversion of price to sales to mean?The current price to sales is 1.96. The industry average is 1.36. Current sales growth TTM is 13% Five years hence if the company sales mature, i.e. growth rate no longer inspires high price to sales, it should revert to mean. This will swallow up sales growth. Using a generous 10% discount rate (consistent with S&P 500 P/E), the company is worth(1.36/1.96)*(1.13)^5/(1.10)^5*28.73 = $22.81.The economic moat is branding. I am not sure this can outlast five years. It's too easy to try other brands.If there is a reason to ignore this analysis such as expected rises in growth due to some future trend, I'll ignore, but for branding?On the plus side, other financials such as debt to equity are better than industry. Not sure if they justify overly optimistic five-year outlook.Very happy to invite responses. Please tear this analysis apart. I want to find out what my mistakes are early.
This company has many roads to success: the increased spending on organic food by those who have money (the right side of the income curve: go where the money is!); the lower cost of dairy substitutes over dairy, which may be exacerbated by decreased price supports for dairy; product innovations in a relatively new product space (front runner, not sure how much of a moat there is, but shelf space and brand recognition are important in this area). "Generic" organic is in the process of self-destructing, in my opinion, as the quality is not similar to recognized brands.
The big items in Organic Foods are dairy and produce. They dominate in both with "Silk" and "Earthbound". The healthy lifestyles movement is alive and well.
This is a growing collection of brands in a growing market.
The move to organics by a younger generation
The organic movement is growing and the horizon brand has great placement in traditional grocery stores, Costco, and health food stores alike.
Maker of Silk almond milk, growing demand for non dairy milks. Also Horizon Organics 40% margins on non dairy milks, that is pretty cool.
Products with room to grow.
Dean foods has spun off its soy-based and organic brands to make WWAV. These are huge value-added sectors, that most major food companies are looking to get into. People argue that these sectors are not growing as fast as they were, but they are still growing and I expect that to continue.
acquired as from the DF spin-off. WWAV got all of the worst management, but they are greedy and I think that it may translate into a gain.
Adding to my Prosocial Portfolio (real-money portfolio for Fool.com):http://www.fool.com/investing/general/2013/01/07/taking-a-taste-of-whitewave-foods.aspx
WWAV had its IPO on Friday, October 26th. I rarely recommend buying stocks at an IPO because there are no numbers to determine how well a stock has been doing. However, in the case of WhiteWave Foods, I'm going by my own experience. They provide non-dairy beverages for lactose-intolerant people. More and more I meet people who are looking for this type of beverage. Grocery stores, health-food markets, and some discount chains offer these products in increasing amounts. Just looking at the sizes of the shelves on which the products are placed also tells me that there is a new wave of need for these products. I expect this company to do well over the next 5 years and bought some shares on Friday.
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