Me thinks Cramer only likes HAIN because every time Irwin is on Mad Money he gives Cramer lots of organic food to take home with him. Cramer also loves B & G foods. Their CEO also has been on Mad Money. Was Cramer pounding the table on HAIN when HAIN was in the teens not too long ago? HAIN is the ONLY food stock that doesn't pay a cash dividend. Does HAIN really deserve a 30+ PE multiple? Irwin has been borrowing money big time to pay for his organic food shopping spree.
"Irwin has been borrowing money big time to pay for his organic food shopping spree."
From Wall Street Cheat Sheet:
"Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.16 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.21 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.8% to $210.5 million while assets rose 1.5% to $455.7 million."
"Was Cramer pounding the table on HAIN when HAIN was in the teens not too long ago?"
I believe HAIN was in the low to mid 20's when Cramer started to rate HAIN a buy.
"HAIN is the ONLY food stock that doesn't pay a cash dividend."
Okay, last year lil LWAY paid its first dividend last year; one time event: 7 cents.
But BNNY? Nope. There are PLENTY of "food stocks" that don't pay a div.
I'm 100% in favor of HAIN NOT PAYING a dividend. Better use of cash.
"Does HAIN really deserve a 30+ PE multiple?" Maybe!
At least the cost of debt is very cheap. I'm more concerned about the amount of goodwill HAIN has on its books.
For years, I have felt that Cramer has a man crush on Irwin; maybe it's just the freebies.