This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer: WhiteWave's Cup Runneth Over

NEW YORK ( Real Money) -- Last night, I did two things I never do on Mad Money. The first was to actually throw cold water on a Chinese initiative of an American company, and the second was to just shake my head and wonder how this company could stay independent.

I am talking about the remarkable story of WhiteWave (WWAV - Get Report), the natural-food company that broke off from Dean Foods (DF) not that long ago. This company is now, perhaps, in the best position of any consumer-packaged-goods company in the U.S.

Back near the end of 2012, Dean Foods -- the huge, plodding and, yes, perennially underperforming commodity milk producer -- decided to show some leg with a partial spinoff of its natural and organic business. Everyone in this country pretty much knew that business as Horizon Milk. The floatation was a hit right off the bat, and its CEO, Gregg Engles, has overseen a 65% stock gain since the day it started trading.

It is now safe to say: In the time since this company has emerged it has become perhaps the single best way, with the possible exception of Hain Celestial (HAIN), to invest in the worldwide wave toward natural and organic eating.

Must Read: Widlitz: Target, Abercrombie & Fitch Sell the Same Guidance

I usually examine a company somewhat episodically. If I am interested in the sector -- and I am interested in a lot of sectors -- I will read an analyst upgrade or downgrade, or watch a CEO interview or bear down and go to work if the company's reporting and then coming on Mad Money.

Usually there isn't too much happening between visits or quarters. For the most part, there'll be nothing that makes you think that, in 90 days' time, the darned thing has changed so much that you need to do a total deep-dive.

That's not the case with WhiteWave. Every time I look, this company is on the move. When I first examined WhiteWave, I regarded it as no more than the natural and organic label -- Horizon -- with some hodgepodge European and American fringe plant-based milk businesses, mostly in soy.

After a little more than a quarter coming public, it became obvious that a new, focused management team -- something you tend to get after a spin-off -- had put its heft toward plant-based-food liquids: soy, of course, but notably almond milk as well. I don't think I would have caught the change if I hadn't been serving breakfast on Sundays at the inn I co-own. I realized that we kept running out of almond milk by mid-morning. But WhiteWave didn't need an inn to see the change.

Then, the next time I saw the company in the news was when WhiteWave purchased Earthbound Farm for $600 million at year-end. Funny thing when you see these deals -- you say, "Oh yeah, where have I heard of that?" You realize it's because you saw it in your refrigerator, because they make the greens you use if you care about having a natural and organic salad for dinner. I realized that, in my fridge alone, I had a package of Earthbound Farm greens next to the Horizon milk I like and the soy and almond milks my kids drink!

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Markets

Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs