Unilever falls under a number of different names with different stocks that go under the working name, "Unilever Group" We'll look at the PLC, since it is the most affordable.
| Rank | Ticker1 | Company Name | Current Stock Price1 | Projected Stock Price2based on Projected P/E | Projected Stock Price2based on PEG | Projected EPS3 | Projected Company PEG3 | Projected Industry PEG3 | Projected Growth Rate4 | Relative PEG Value5 | % Under/Overvalued PEG5 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | STKL | SunOpta, Inc. | Food - Major Diversified | $6.32 | $6.44 | $27.77 | $0.48 | 0.38 | 1.67 | 34.65% | Undervalued | 338.60% |
| 2. | HOGS | Zhongpin Inc. | Food - Major Diversified | $12.85 | $19.71 | $44.71 | $1.47 | 0.48 | 1.67 | 18.21% | Undervalued | 247.22% |
| 3. | DOLE | Dole Food Company | Food - Major Diversified | $10.18 | $13.28 | $12.69 | $0.99 | 1.34 | 1.67 | 7.67% | Undervalued | 24.38% |
| 4. | LANC | Lancaster Colony | Food - Major Diversified | $71.14 | $58.33 | $67.50 | $4.35 | 1.76 | 1.67 | 9.29% | Overvalued | 5.60% |
| 5. | HNZ | H.J. Heinz Compan | Food - Major Diversified | $58.46 | $50.82 | $41.02 | $3.79 | 2.38 | 1.67 | 6.48% | Overvalued | 42.80% |
| 6. | UL | Unilever PLC Comm | Food - Major Diversified | $38.61 | $31.38 | $17.62 | $2.34 | 3.66 | 1.67 | 4.51% | Overvalued | 119.60% |
Unilever is very overvalued according to the PEG calculations which is what we learned that we should use for established companies. Unilever has over-recovered. Skip it.
SunOpta is a organic food company. They do generic foods and seem to run the whole process by themselves. They sell to both manufacturers and restaurants. Very broad based company. This might be where your Publix Greenwise comes from. In a growing economy, we're guessing that this company could do very well, but we're not so sure about a shrinking one.
Here is a quick comparison to SPY. We've got some more volatility there. That stock value may have something to do with it. This got us to a quick macro discussion about organic food in general and maybe we should look for a fund so that we wouldn't be trying to pick a winner.
We started looking for organic food ETFs and found the following:
http://www.dailyfinance.com/2012/06/19/huntingtons-ecological-strategy-active-etf-first-o/
This rather new ETF contains a group of established companies in what we consider an odd mix.
Another interesting article we ran into had the following quote (http://www.topstockanalysts.com/index.php/2012/03/08/5-misunderstood-etfs-explained/):
"Though some investors no doubt buy these funds because of the utility derived from avoiding “bad” companies, there is a case to be made for these methodologies producing above-average returns over the long run. Companies that stay on the right side of the law and act as responsible corporate citizens are more likely to avoid costly lawsuits and build loyal customer bases–two factors that can boost profitability over the long run."
This is a nice thought. I'm not sure if it will pan out, but it'd be nice. Another article on the same topic:
http://seekingalpha.com/article/723161-huntington-s-top-stocks-here-s-why-eco-investments-are-smart-investments
With that, we have covered none of the stocks that we said that we would last meeting.
Profit!
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