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In trading on Thursday, shares of Boulder Brands Inc touched a new 52-week low of $11.34/share. That's a $7.12 share price drop, or -38.57% decline from the 52-week high of $18.46 set back on 04/03/2014.
TheStreet highlights 3 stocks pushing the Food & Beverage industry lower today.
I totally missed this story when it first came out in May, but it's just as relevant today -- even more so with the surge in shares of Boulder Brands BDBD, a gluten-free play: The doctor behind the gluten-free craze says he was wrong.Dr. Peter Gibson's reversal has been widely reported in a variety of publications, including Real Clear Science, the New Yorker and even on Good Morning America.But you wouldn't know it by the stock-goosing comments of Boulder Brands' CEO Stephen Hughes, at a William Blair conference earlier this week. Boulder owns a number of leading gluten-free brands, including Udi's and Glutino.In his presentation, speaking of gluten, he said:"So the reality is, this is one of those ingredients that we screwed around with. We hybridized wheat to make it more glutinous, so you could make bread faster, cheaper, better. Gluten is glue in Latin, and what we created was something that did make better bread, did make cheaper bread, but it's very hard to digest and it creates a lot of unintended consequences."
A gluten-free diet has become extremely popular among health buffs who believe it helps alleviate abdominal and intestinal problems, among other things.
Has the market gotten too complacent about these new highs? Cramer wonders. Next week could be difficult for the bulls.
Stocks with insider trader activity include BDBD, TIVO and CAH
Boulder Brands (Nasdaq:BDBD) has been downgraded by TheStreet Ratings from from a buy to hold.
A look at the weighted underlying holdings of the Vanguard Consumer Staples ETF (VDC) shows an impressive 10.9% of holdings on a weighted basis have experienced insider buying within the past six months. START SLIDESHOW:10 ETFs With Stocks That Insiders Are Buying » Boulder Brands Inc , which makes up 0.08% of the Vanguard Consumer Staples ETF (VDC), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data.
The most recent short interest data was recently released by the NASDAQ for the 04/30/2014 settlement date, and Boulder Brands Inc is one of the most shorted stocks of the Russell 3000, based on 14.45 "days to cover" versus the median component at 5.62. There are a number of ways to look at short data, but one metric that we find particularly useful is the "days to cover" because it considers both the total shares short and the average daily volume of shares typically traded.
Upgrades: ABAX, PRSS, SBS, TREE Downgrades: ASYS, BDBD, JST, LMAT, MILL, NTWK, SSY, TEF, VOXX Initiations: KNOP, PME, XONE Read on to get TheStreet Quant Ratings' detailed report:
Cramer is hungry for Boulder Brands and smells a winner in International Flavors & Fragrances.
The Great Recession of 2008 has had a continued impact on our society, Cramer says.
All you need to know about Boulder Brands in the wake of its first-quarter results last week is that the growth of its Udi's gluten-free bread as well as the Udi's and Glutino brands combined is tumbling.Last quarter Udi's grew 37.4%; that's down from 62% a year earlier. And Udi's and Glutino combined grew at 31%, down from 50%.Margins aren't looking too hot either, with the gross margins sliding to 37.7% from 41.4% in the previous quarter and 42.7% a year ago. The company blames the margin, in part, on the impact of high egg white prices.Speaking on the earnings call, CFO Christine Sacco said:Despite higher egg white prices, we expect gross margin to benefit from a number of initiatives. The first is an improvement in our cost of goods, as we are in the process of improving our formulation, which requires less egg whites. This new formulation is in production, and when inventories flow through it will have a meaningful impact in Q3.Reality: One of the reason's Udi's has done so well is because many consumers prefer its taste to other gluten- free products.
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.
Investors in Boulder Brands Inc saw new options become available this week, for the May 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the BDBD options chain for the new May 17th contracts and identified one put and one call contract of particular interest.
The battle over genetically modified foods continues, but the number of companies publicly taking a stand against them is growing.
My weekly summary, including takes on Harley, Clean Harbors and RealPage. Here's what you may have missed over the past week on Reality Check, my Herb on TheStreet blog and even social media. What I'm hearing on Harley, from one of my contacts: "Any way you look at it, they are stretching to get the revenue dollars and they are able to charge those marginal credits. More so, the numbers look great at the outset -- but look out down the road if you haven't planned on a huge increase in (credit) losses." What ITT Didn't Say: ITT Education, in a press release, told the Consumer Financial Protection Bureau it has no business suing the for-profit education company....
Some quick takes, post-earnings, on Reality Check Watch List companies: Boulder Brands - it's still unclear why Boulder, the gluten-free play, rose after reporting earnings last week. The company missed on GAAP numbers (not that GAAP matters to BDBD investors, who have been encouraged to look at "adjusted" non-GAAP results) and guided down for 2014 for the third time since November. Even adjusted results aren't what they're cracked up to be. Adjusted EPS would have missed, but instead beat after adding back restructuring and relocation-related charges, which added 2.5 cents to earnings per share. Without it the company would have missed by $0.01. As I wrote in a broader piece on Reality Check, the company reiterated on its call that it believes gluten-free is a trend. I say it's a fad...
Cramer isn't backing away from Opko Health but he's avoiding Boulder Brands.
The futures have a way of taking down the entire market for no particular reason, and it's times like those when investors should be buying, Cramer says.
Investors considering a purchase of Boulder Brands stock, but tentative about paying the going market price of $14.53/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the September put at the $12.50 strike, which has a bid at the time of this writing of $1.10.
With the new year under way, let's get started with a look ahead and an audit of stocks on my Watch List. When you primarily fly red flags in an almost straight-up market -- which confuses brains in a bull market -- you just keep plowing ahead. I've been there, done that and doing it again. As longtime readers know, I don't make stock calls. I point out risk. And I don't view a story as having been proven right or wrong just because a stock rises or falls yesterday, today or even last year. (For that reason, I think it's an absurd measurement to judge investment managers on performance in a single 12-month period, but I digress.) Many of these stories can take time -- sometimes a long time -- to play out. They're not calls on the stock, but on risk that can get in the way of a stock. Rising stocks, especially in indiscriminate bull markets, can paper over any number of risks -- until they don't.
Post-quarter Update: Red flags continue to fly over gluten-free pure-play Boulder Brands, even as analysts -- in their post-quarter reports (surprise, surprise) -- glossed over what to me would appear to be obvious concerns.My original piece on the company raised a number of concerns, including receivables and inventory rising much faster than sales. The trend continued in the third quarter, as gross margins continued their multi-quarter slide. But there's so much more at the company, whose brands include Udi's, Glutino and Smart Balance. Among the items that caught my eye: Celiac Awareness Month -- Or Not?: Let's start with CFO Christine Sacco's comment on the earnings call that "we saw some pull-forward for Udi's sales ahead of October Celiac Awareness Month..." Never mind that May has replaced October as Celiac Awareness Month or that an annual event like that should already be factored into planning. (Celiacs cannot eat gluten.)
The trading panel discussed which quality names are worthy of investment as the government shutdown continues.
Investors eyeing a purchase of Boulder Brands stock, but tentative about paying the going market price of $15.96/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the March 2014 put at the $12.50 strike, which has a bid at the time of this writing of 70 cents.
On the surface, the growth looks impressive. But at Boulder Brands a number of red flags fly that look past its impressive growth. Will its gluten-free push roll the wrong way?
Upgrades: ALSK, AMAG, AZN, BALT, BDBD, BELFA, BG, BRKR, CRK, GVA, III, ITG, KRNY, OCN, OEH, PDM, SENEA, SM, SPAR, SWN Downgrades: ABX, ACTV, AIV, AXTI, COT, ELS, EPAX, NXTM Initiations: None Read on to get TheStreet Quant Ratings' detailed report:
Investors in Boulder Brands Inc saw new options become available today, for the August 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the BDBD options chain for the new August 17th contracts and identified one put and one call contract of particular interest.
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