Seeking Alpha: Natural Grocers Boldly Going Where Others Have Gone Before

If imitation is the sincerest form of flattery, Natural Grocers (NGVC) (also known by its full name of Natural Grocers by Vitamin Cottage) is paying some big compliments to Whole Foods (WFM), The Fresh Market (TFM), Trader Joe's and Sprouts. The company is pursuing a growth strategy in the organic/natural food retailing sector that seems to be taking some of the best ideas of these larger chains and coupling them with an even tighter focus on the hard-core healthy eating community. While these shares have had a big run in 2013 and sport pretty robust valuation multiples, it may be hasty to assume that the stock is overpriced today on a long-term basis.

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Natural Grocers Boldly Going Where Others Have Gone Before

Seeking Alpha: Little Wrong With Herbalife Other Than Its Valuation

The devil's bargain between Wall Street and growth stocks goes a little something like this: “You give us exactly the growth we expect or more (but never less!) and we'll support extreme valuations that your cash flow probably can't support”. There's also an “or else” attached – if a company disappoints even slightly, there's an outsized price to pay.

Honestly, that's about the only context in which Herbalife (NYSE: HLF) is really disappointing anyone, and perhaps shareholders can count themselves lucky that the stock isn't down even worse against a backdrop of a pretty ugly tape.

More Growth In Q3

Herbalife's growth is almost hard to believe. Apparently there really is gold in guarana, protein shakes, and the other assorted supplements and “solutions” that the company offers through its army of over 2 million independent sellers.

To read the full piece at Seeking Alpha, click here:
Little Wrong With Herbalife Other Than Its Valuation

Investopedia: Herbalife - Stealth Emerging Markets Play?

It doesn't matter how much doctors and nutritionists may decry supplements, they are popular and people want to believe in them. That has underpinned good growth in a sector with none of the patent worries of pharmaceuticals and minimal FDA interference. It has also led to solid stock market performance for traditional store-based retailers like Vitamin Shoppe (NYSE:VSI) and GNC (NYSE:GNC) as well as multi-level marketing firm Herbalife (NYSE:HLF). (For help on choosing stocks, check out How Investors Can Screen For Stock Ideas.)

Growth in a Bottle in Q2  
Herbalife continues to rack up impressive growth. Revenue rose 28% in the second quarter, with organic growth on the order of 20%. There are several metrics that investors can use to evaluate the underlying momentum of Herbalife's business and regional volume points is one of them. By this standard, volume rose more than 17% in the second quarter, with exceptionally strong growth in Asia-Pacific, Mexico, and Central/South America. Results in North America and Europe were more sedate (mid-single digit growth), while the China numbers were actually down about 9%. Overall reported revenue from China was flat, though. 


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http://stocks.investopedia.com/stock-analysis/2011/Herbalife--Stealth-Emerging-Market-Play-HLF-VSI-GNC-USNA-WTW-NTRI-VVUS0805.aspx

Investopedia: Will Nestle Succeed Where Others Have Failed?

A curious announcement came out this week when Swiss food and nutrition giant Nestle (OTC:NSRGY) announced that it was acquiring U.S.-based medical therapeutics and diagnostics company Prometheus Laboratories. Nestle will fold Prometheus into its newly formed Nestle Health Science division and likely will guide the company's efforts toward more research into nutrition-based therapeutics as well as areas like metabolism. Although Prometheus' $250 million or so in ongoing annual revenue will not make a major dent in Nestle, it is an interesting deal on multiple levels. (For background reading, see Investing In The Healthcare Sector.)

What Nestle Is Getting 

In acquiring Prometheus, Nestle is getting a business that has focused on diagnostics and therapeutics for indications in gastroenterology and oncology. Prometheus recently got approval to sell a Crohn's diagnostic test, and the company sells a variety of drugs for conditions like cancer and irritable bowel disease.

Nestle did not specify the price it is paying for Prometheus. Considering others deals like Novartis' (NYSE:NVS) acquisition of Genoptix, Quest's (NYSE:DGX) acquisition of Celera, and Thermo Fisher's (NYSE:TMO) acquisition of Phadia, Nestle likely paid at least $650 million, but that is purely speculation at this point.

To read the full piece, please click the link below:
http://stocks.investopedia.com/stock-analysis/2011/Will-Nestle-Succeed-Where-Others-Have-Failed-NSRGY-NVS-TMO-DD-PG-ABT-GNC0526.aspx?partner=YahooSA