Look out for Under the Radar Report's quantitative analysis going out to subscribers today. The analysis highlights the momentum behind food stocks.
There has been speculation about interest from China in food assets is behind some of the big interest in food stocks. Four of our top seven stocks are companies that produce food, as ranked by Radar’s Quantitative system.
But each stock trades on its own fundamentals.
As we said in Radar’s issue #51 on 1 August, from a fundamental view point we think that the organic and allergen free food packaging group Freedom Foods (FNP) is overpriced. We cannot see exponential sales growth occurring from the US market that is priced into the stock. We also question its competitive edge. When we made our recommendation, FNP was $2.10. It’s at $1.94.
On the other hand, we said that we thought that almond producer Select Harvests (SHV) would continue to head towards $4. Then it was trading at $3.66. Now it’s $3.85.
It pays to read Under the Radar.
Before I go, I would also like to introduce you to the blog of “Skeptikoi” who is analyst and economist behind Under the Radar Report’s quantitative analysis. These days he works as a fund manager, who runs billions of dollars, but he also moonlights as an economist blogger. It is worth reading.