Friday, September 22, 2006
Sector Spotlight: Stuff We Buy
Think KO, PEP, or more recently HANS and SBUX.
Some of the easiest research can be done during a trip to the supermarket. When I take the wife and kids to go shopping, all I do is look for the next big thing. Lets face it, we are gluttons and will stop at nothing until we can maximize our calorie/sugar/caffeine intake.
My point: Get out there and do some damn research and stuff your face to boot. Try to find the next HANS-- its right in front of your face.
For example, unrelated to food but still popular are Heely's sneakers. Have you ever seen 8-12 year old kids rolling around the mall with sneaker skates? Well, that's Heely's.
Personally, I have never seen something so popular with kids, ever. In NYC every kid seems to wear them. Anyway, they are coming public very soon--ticker HLYS. The way I am playing it is through CSWC. Apparently, CSWC owns 43% of Heely's and should get plenty of attention as the IPO date nears. CSWC also owns a chunk of WIRE.
Aside from sneakers, what could be the next big winner in food and beverage?
Could it be JSDA with their disgusting tasting soda's? Or, how about WBD and their vast Russian beverage product line?
I have many idea's. If you have any, please share.
UPDATE: Silly me. I almost forgot to mention that the market fucking sucks today and is poised to crash through the floor. RACK short looks good.
The following food and beverage stocks have products that could be big winners or not:
WVVI, FIZ, SNAK, JJSF, JAVO, GMCR, YOCM, BRVO, VCO,WBD, LWAY, JSDA, PMID.
any way you can update on how cramer's aa+ is doing so far this year. i used to subscribe but found that it was never really worth it. miss your other site that cramer shut down!
I'll buy when the institutions start buying. When is that? When the monthly (yes monthly) volume figures start increasing. The filter is to look for the first month the volume doubles and make your play then. Of the list shown most of them are already beyond that point. If you look at them over a monthly chart you will see what I'm talking about. Start with HANS and see what happened to its volume when it began its run. You will also note that HANS had price volatility increases on a monthly basis about 8 months before the volume began heating up. So a second filter could be for price volatility on a monthly basis.
This idea, of course, is for buy and holders which is not me.
I was an ealry buyer of HANS and made a killing in it. I disagree with your waiting for the institutions to buy it position.
For me, some money is to trade, other is to invest.
It will be hard to get that monster winner by waiting for Fidelity to sponsor it.
By then, it will be too late.
As for my list:
I did not look at charts, only products. Moreover, I am not a very big fan of any of them. I just wanted to start a discussion on the topic.
As for Food and Beverage: When a product catches on, rarely do the stocks disappoint.
I misread your volume analysis.
I agree, it makes sense to wait for a pickup. I thought you meant overall sponsorship.
there is a website for the beverage reviews:
I read your post on CSWC-- nice call.
I've been in CSWC for quite some time.
Way back when publicly traded vc's were ripping.
Remember SFE, CMGI, ICGE etc.
Only CSWC has survived the test of time.
I think the stock is cheap. The only downside will come with declines in WIRE or PHHM.
P.S. I think HANS's raspberry and cherry vanilla are among the worst I've tried, bar none.
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