Organic foods and the market. Where should I invest?
I'm thinking Seed, John deer and whole foods. Organic foods, is it just a fad or is it here to stay? We all want healthy food. I've been buying acai drinks a lot recently because they have more anitoxidents. Are organic foods worth investing in. I'm including genetically engineered seeds, farm equipment, and organic food markets.
Thanks!
-Simon
Best Answer
4085 points
EthanR answered one year ago …
Chidog, one stock I like in this sector is Whole Foods Market, Inc. (WFMI). An $80 stock in 2006, it currently trades at only $22.67! It's been cut in half this year alone. PE ratio is 19, dividend yield at current level is 3.74% The recent low was 20.18, so you would either want to make sure that low holds before you buy, or put your stop loss slightly below that price if you buy it now.
WFMI is the world's largest retailer in organic and natural supermarket foods, and they are still expanding. Technically, the stock is looking much better on the daily chart, with RSI, stochastics, and MACD all having turned up. The stock just moved above the 20 day moving average. Negatives are the 50 day M.A. is still declining and below the 200 day M.A.
You are correct that people are more concerned about what they eat all the time, and especially the aging baby boomers. However, just keep in mind that the slower economic climate has hurt this stock, because organic foods cost more than non-organic foods. Also, many regular supermarkets are now stocking organic foods. However, I still think WMFI will be a winner over the long term and the price and dividend yield are certainly attractive. Good luck, I think you are onto something!
