Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Organic Food – Long term trend

with 3 comments

What we call Organic Food was called Food by your grandparents. It is a trend that will continue to show up now, in my opinion.

A couple of exemplary companies at the moment on my radar that I may miss being on the sidelines due to the Infosys nature of stock (high growth but equally high PE multiple).

First is in the United States. Where Food Comes From Inc. It provides Organic Certification, Labelling, Third Party Verification

WFCF is still a small cap at 65 Million USD market cap. The company will be engaged in McDonalds tracking and verification program and has lions share of market.

On the face of it quite dear, 6 times revenues and 100 times earnings.

Second is an Australian company, just noticed today, makes organic baby food (Just as no patient bets low on brain surgeon, no parent bets low on infant food).

The company is wiping out its competition with revenue growth of 150% in the previous year and net profit growth of 450%. The company came with an IPO last year and is 7 times up since. A rare IPO stock that was not overpriced. Needs more research. Bellamy is nearing 800 million MCAP, 5 times revenues and 85 times earnings. If the growth continues at even 1/3rd of the current years’ pace (always hard to look ahead), then the stock looks quite cheap. Company has positioned itself for growth in Hong Kong and China.

What is evidently clear is the potential of the sector.

Click to Enlarge

Written by amitdipsite

September 16, 2015 at 10:09 am

Posted in Uncategorized

3 Responses

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  1. Hey Amit, came across Kenyan Reinsurance , maybe of interest. 6% yield, 0.5x book, sounds like monopoly, no clue

    – 2fthurdle


    September 22, 2015 at 2:27 pm

  2. Any indian company to look for in this space ..keep up the great work 🙂


    October 10, 2015 at 8:17 am

  3. How can we buy shares in those countries?

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