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Monday, September 17, 2007

Organic Eating

Still looking for huge chunk of meat or beautiful fruit without any bug bite? Ever wondering how there can be endless meat and so many nice looking fruit while the prices are so low?

Back in the old days when famers are without the modern agriculture techniques, the production of crops depend on weather and luck. When bugs or virus invade farms or ranches, a year worth of effort may be wiped out in matter of days. Today with pesticides, artificial fertilizers and hormones, not only pest attacks are limited the growth time of farm produce or livestock becomes shorter and shorter. Moreover the size of the produces become larger as well. All these seem perfect for the farmers and consumers. However when you think of it more carefully what you are eating is not just food but also possible left-over harmful chemicals.

So now it's back to the old days again. And this time people gives it a hip name - organic food. Basically organic foods are those that were grown without pesticides, artificial fertilizer, human waste or growth hormones. The food may not be as big or as good looking yet it's more healthy. Which is why now-a-days in the supermarket you have the choice of milk or organic milk, broccoli or organic broccoli and chicken or free-range chicken.

With more and more people spending more money for less poisoness organic food, this may be a perfect time also to look at these "organic" company stocks:
  • The Hain Celestial Group, Inc. (HAIN): the company owns several brands of organic products ranging from grocery, beverage and even snacks. The stock has gained 100% from $15 in second quarter of 2004 to $29.77 today.
  • Whole Foods Market Inc. (WFMI): the grocery chain sells organic grocery and even prepared food. Since reaching the peak in January 2006 the stock has been on the slide and is now back to the $42.65, the same price in 2004.
  • General Mills (GIS): the company with $19 billion in market cap makes organic products such as soupts, granola bars and cereals. The stock was a safe play as it has been rising steadily for the past 20 years and is now traind at $57.8 or P/E of 18.19.
  • Dean Foods Co. (DF): the company owns several organic dairy brand such as Horizon Organic, Rachel's Organic and The Organic Cow. The stock is now trading at 52 weeks low of $25.61 with P/E ratio of 14.92 only.

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