Saturday, May 29, 2010

Milk Can Cause Fat Reduction for Women: Time to Look at Milk Stocks


According to a new study by Canadian researchers at McMaster University, drinking a couple glasses of milk after an exercise workout, can cause women to lose more fat than if they imbibe a energy drinks. The study can be found in the Medicine and Science in Sport and Exercise. Apparently, a prior study showed the same benefit for men with increased muscle mass and lowered fat. Maybe now is a good time to look at milk stocks.

Companies in the dairy products business with market capitalizations above $350 million are limited. The largest in terms of market cap is Groupe DANONE (DANOY.PK), is a French company founded in 1899 which has ADR’s that trade on the Pink Sheets. They produce fresh dairy products under Danone brand, including yogurts, dairy desserts, infant foods, and probiotic dairy products. One of their major brands is Dannon yogurt. They also distribute Evian water. The stock has a forward P/E of 13.5.

Second largest at one tenth the size by market cap is Dean Foods Co. (DF). This Dallas, Texas based company distributes branded and private label dairy products, including yogurt, butter, cheese, cottage cheese, sour cream, half-and-half, whipping cream, dairy coffee creamers, and ice cream. The company's forward P/E is 8.7 with a PEG of 1.1.

Wimm-Bill-Dann Foods OJSC (WBD) is the third largest company, and is based in Moscow, Russia. The company produces pasteurized milk, yogurt, butter, cream, cheese, kefir, cottage cheese, sour cream, puddings, and cheese. The P/E is 15.2, their PEG is .53.

A U. S. based company with an international flavor is Synutra International Inc. (SYUT), which is in the business of marketing dairy-based nutritional products, nonfat dry milk and anhydrous milk-fat in China. The stock carries a P/E of 37.3.

Lifeway Foods Inc. (LWAY) is a manufacturer of health food dairy products, including kefir drinks, cheese, yogurt, and other health food products. The stock has a forward PE of 23.3 and a PEG of 1.07.

It looks like everyone's got milk all over the world. For other lists of stocks in interesting industries, check out WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com

1 comment:

David said...

Very interesting, but I have a question: why don't I see any talk about real estate? watching Donald Trump, one can think this is the right time to buy. Am I wrong?