WhiteWave Foods (WWAV) was the jewel of my portfolio about 12 months back. The stock was making new highs -- what felt like -- every single day, and the stock appreciated some 40% since I first bought it. In case you missed them, I've written about WhiteWave numerous times, and you can read those articles here, here, and here. Though WhiteWave posted stellar numbers, beating and raising estimates on numerous occasions, much of the stock's increase was the result of immense buyout rumors. Once the rumors subsided, the stock hit a high of $52 and change and began to retreat. But now I think the selling is overdone. In the time that the stock was retracing its prior momentum, the company was reporting even more fantastic quarters. This has driven the company's valuation down considerably, and I think that WhiteWave is exhibiting some incredible risk/reward at current levels. Moreover, the technicals are lining up with the bullish fundamentals, and are hinting at a reversal to the upside. More on this later. About WhiteWave's valuation: it must be looked at with a grain of salt. The company is valued at 29.5 times next year's earnings, and 25 times 2017 earnings expectations. Okay, that's expensive. But not so expensive when you factor in the fact that WhiteWave is one of the fastest growing food companies... 341 more words left in this article. To read them, absolutely free, follow this link to Seeking Alpha. Comments are closed.
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