This Israeli-based baby food company is spreading its wings with its toddler and kid shakes moving into Walmart stores. Please note, these shares are speculative, so please don’t load up on them.
Else Nutrition Holdings Inc. (BABYF)
From Cabot Explorer
Else Nutrition Holdings shares went from 1.91 to 2.03 in their first week in the Explorer portfolio. Else is a young, Israeli-based, plant-based food and nutritional company aimed at babies and toddlers. Trading at a market value of only $195 MM, this stock is speculative, but it has a number of characteristics that could be framed as conservative. It is riding the powerful trend of parents wanting more of a plant-based diet for their kids. Else bypasses all the hormones, pesticides, chemicals, dairy, soy issues since it is made from almonds, buckwheat, and tapioca.
I’m also impressed by its growth trajectory, huge markets, top executives with experience at companies such as Abbott and Mead Johnson, and strong scientific and advisory boards. It has already secured patents in key markets, which are estimated at $80 billion and growing at a 4-5% clip.
Another reason I think there is upside in the stock is the discovery potential. Institutional investors have a very small proportion of issued stock and management owns 41% so they are plenty motivated.
In addition, I’m impressed with the marketing and distribution efforts thus far. Finally, Else may expand the brand to cereal, post-toddler nutrition and nutritional drinks. It’s a good story so let’s begin with incrementally building a half position. BUY A HALF
Carl Delfeld, Cabot Explorer, cabotwealth.com, 978-745-5532, October 7, 2021