The WhiteWave Foods Co. (WWAV-N)

(Top Pick Jul 2/14, Up 70.22%) The healthy eating trends yields $200 billion of capital flowing into organic and healthy eating foods. There is 60-70% margins on organic milk. It is really a growth story.

(A Top Pick July 10/15. Down 11.87%.) A great company. Margins have been very high relative to the food industry. They do specialty foods such as almond milk. Put up some pretty good numbers in the last quarter, but thinks the margins will be under a little bit of pressure going forward. Expects it to get taken out at some point. Sold his holdings.

A food distributor and producer in the US, with a large focus on non-GMO (genetically modified) foods. This has been a growth story as well as a growth by acquisition story, because they have been filling in categories of non-GMO foods. Not cheap anymore. He had got in at around a 20X multiple and it is now closer to 30X. Has been trimming his position.

Plant-based alternative foods, non-dairy creamers, including Silk Almond Milk. Incredibly fast growing. The bottom line is growing at 15% per annum. It ticks all the boxes, healthy eating. What you are seeing is food companies catering to healthy living are on fire. He thinks this gets acquired ultimately because it gives much-needed growth to some of the larger food companies.

Not a very well known company, but that is where opportunities really lie sometimes. Organic foods are a very, very popular theme. Valuation is very, very high, but that is because of the growth rate being extremely high as well. From an operational standpoint, they are exceptionally strong at being able to execute, and because of that, they could potentially be a takeover target.

Secularly this is in the right space. Everybody is looking for healthier, more organic, more natural foods that are better for you. He’s a huge proponent of that, but this is trading at a massive multiple. In the next leg of a rally, you are going to have to see some M&A happen with some traditional players such as Kraft (KRFT-Q) and Kellogg (K-N) looking to expand, making acquisitions.

Organic milk. Have defensible market share, but also high free cash flow. This is a high-margin business. Not only retail distribution, but also commercial distribution through school programs. Just struck a joint venture with a Chinese company to deliver organic baby powder formula into China.