Question:
My stock club’s latest picks are Hain Celestial Group and TreeHouse Foods Inc. I’m leaning toward Hain Celestial because of the dividend. Do you have any opinions on these?
Answer:
The Hain Celestial Group, Inc. (NASDAQ: HAIN) manufactures, markets, distributes and sells natural and organic products under brand names, which are sold as better-for-you products. It is engaged in natural and organic products categories, with brands such as Earth’s Best, Celestial Seasonings, Terra, Garden of Eatin’, Sensible Portions, Rice Dream, Soy Dream and Almond Dream.
Hain Celestial does not pay a dividend however, the company has been growing at 18% a year. The company has a modest evaluation and its peg ratio is in line with the staples industry. Overall Hain Celestial is a good company and at the right price we consider it a buy.
TreeHouse Foods, Inc. (NYSE: THS) is a food manufacturer servicing the retail grocery and foodservice distribution channels. It manufactures and sells private label products to retailers, such as supermarkets and mass merchandisers, for resale under the retailers’ own or controlled labels; private label and branded products to the foodservice industry, including distributors and national restaurant operators; branded products under its own brands, on a regional basis to retailers, and products to its industrial customer base.
TreeHouse Foods is growing at around 6% a year and has a PEG ratio of close to three. While TreeHouse Foods is a good company with solid growth potential, of the two, we prefer Hain Celestial.
Question:
What can be done at year-end to help your financial situation?
Answer:
There are strategic moves you can make at year-end to help your financial situation. You can look at how much you have taken in gains this year and how that will affect your overall financial situation. You can look for stocks you may have that are at a loss, so you can sell. You can maximize your charitable giving. You can still get a tax projection that may help you understand any moves you can make from a tax perspective. Small-business owners can make expenditures that you may ordinarily make in January. These will count toward your 2013 taxes if made in December. You can set up and fund a 401(k), and you may also be able to setup a profit sharing plan or a SEP.
Question:
I’ve been looking at Icahn Enterprises lately. I’ve always liked Carl Icahn. I think he could be another Warren Buffett. What do you think of this pick? I was also considering Delphi Automotive, but I think I like IEP better.
Answer:
Icahn Enterprises, L.P. (NASDAQ: IEP) is a Master Limited Partnership, diversified holding company. The Company owns subsidiaries, which are engaged in Investment, Automotive, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion. From an investment perspective, the company does not appear to have a unified strategy, so it is difficult to understand how the company will grow. The lack of strategy also makes it difficult to determine if each holding they acquire will be good for the company long term.
At Henssler Financial we believe you should Live Ready, and that includes understanding how your investments work for you. If you have questions regarding your financial situation the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
