Sky's the limit for Hain Celestial

Its high-end health food and natural products will benefit from the overarching trend toward eating better and fighting obesity.

By Jim Cramer Aug 30, 2010 8:51AM

jim cramerBy Jim Cramer, TheStreet

 

Who is bullish on their American prospects these days? Who is unrestrained about the opportunities here? I have found one company, one company that has more demand than it can handle -- besides Apple (AAPL) -- and that's Hain Celestial (HAIN).

 

A series of meat and egg recalls coupled with the overarching trend toward combating obesity has got this company on a multiyear growth path, even as people somehow think it can't shoot straight.

 

Hain makes all sorts of high-end, healthful, organic products, including teas, snacks, baby food and cleaning supplies. In each case, it distinguishes itself by ethos: It won't produce something unless it is best-of-breed good for you. That is why it has more than 1,800 stock-keeping units in Whole Foods (WFMI), which itself is doing phenomenally well.

 

 

The trend toward food that is good for you is one of the great themes of this era -- it extends to outfits like Chipotle (CMG), which is like the Good Housekeeping Seal of Approval of restaurants. Hain is bankable because if a stock in the cohort falters -- as many had bet that Hain would this quarter -- you can buy it lower if it misses.

What I think most people may have missed in my interview with Irwin Simon, Hain's very smart CEO (whom Wall Street is somehow not comfortable with, though I sure am), is the push into schools. New York is going to rip out the bad stuff and put in the good stuff -- natural foods -- to fight obesity. The city is willing to lose the revenue from the devil's bargain of soda and snacks and put in Hain's products to win the obesity battle -- one that schools have been on the wrong side of. I think that move can set the trend.

 

I also think that the push into China, where people go to KFC now because of its American (not Chinese) standards, will be a huge additive business starting in 2012.

 

Looking for something that hasn't been a dog during these dog days? Go read the conference call for Hain Celestial -- not the research, which is uniformly negative -- and get comfortable as this horrible market puts pressure on every stock pretty much every day.

 

At the time of publication, Cramer was long Apple.

 

Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.

 

P.S. Click here to learn how to follow Jim Cramer’s trades for his Charitable Trust.

 

Related Articles

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
265
265 rated 2
429
429 rated 3
612
612 rated 4
499
499 rated 5
525
525 rated 6
701
701 rated 7
533
533 rated 8
337
337 rated 9
131
131 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.