How's this one to spice up your portfolio! The Hain Celestial Group, Inc. (HAIN), according to the money.cnn.com "snapshot" is "...a natural, specialty and snack food company, selling, marketing and distributing a range of natural foods, cooking oils, medically directed snacks and specialty and herb teas." I do not own any of these shares directly, but as a matter of fact my stock club does have a few shares that we purchased a few months ago.
HAIN had a great day today in the face of a LOUSY market. (I am close to hitting my 8% stop on CREE, a high tech firm that was a recent purchase....maybe we will get a rebound tomorrow?) Hain closed at $22.55 up $1.38 or 6.52% on the day.
Guess What? You won't believe it (jk), but what drove HAIN up in price today on the heels of a LOUSY market...was a GREAT earnings report. HAIN released today, before the opening, the second quarter results. For the second quarter ended December 31, 2003, HAIN reported it earned $10.4 million or $.29/share up from $8.19 milion or $.24/share a year ago. These earnings were actually a MISS by a penny based on a survey of 10 analysts...but I guess this news, along with the news of a soon to be introduced array of low-carb products, was enough to light up the fuse of ATKINS-crazy investors! Revenue for the quarter rose 16% to $142.8 million from $123 million a year ago...but again this was "below Wall Street's mean estimate of $148.6 million."
Looking at Morningstar.com "5-yr restated" financials we find that revenue has been growing very steadily from $315.8 million in 1999 to $497.1 million in the trailing twelve months. Earnings/share have been erratic with $.51 reported in 1999, dropping to a loss of $(.41)/share in 2000, back up to $.68 in 2001, down to $.09 in 2002, but increasing since then from $.79 in 2003 to $.84 in the trailing twelve months.
Free cash flow has been positive but again inconsistent with $9 million in 2001, $1 million in 2002, $13 million in 2003, and $8 million in the trailing twelve months.
The balance sheet appears healthy, although not loaded with cash listed at $12.9 million, they do report $154.8 million in other current assets. This is compared to $77 million in current liabilities and $74.1 million in long-term liabilities. Looks o.k. to me!
Looking at "key statistics" on Yahoo.com, we see that the Market Cap is a small $772.0 million with a reasonable trailing p/e of 26.85. Forward p/e (fye 30 Jun 05) is 17.50. The PEG isn't bad at 1.33 (anything close to or under 1.0 is great), and price/sales also reasonable at 1.46. There are 34.2 million shares outstanding with 27.50 million of them that float. As of 1/8/04, there are 1.06 million shares out short, representing 3.87% of the float or 5.917 trading days. (What terrible stuff do these short sellers SEE in this stock?) They may very well be feeling a bit of a squeeze with this stock price rise.
Overall, I like this stock a lot. If I were selling CREE today, which I came close, I would probably be thinking about adding this stock as a position....but you KNOW I have already filled my 25 position portfolio...at least for now...and have LOADS of margin which will truly be a problem if this downdraft continues!
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