NEW YORK, June 26, 2008 (PRIME NEWSWIRE) -- Metals have had their boom and the cost of oil is still surging, but Nate Pile, editor of investor newsletter Nate's Notes, recently reminded Wall Street Reporter subscribers of the opportunities presented by soaring global food prices.
"I think we're entering a new phase in terms of the global economy," he said in an exclusive interview, which investors can listen to at www.wallstreetreporter.com. "Metals, we do or don't need, depending on how we want to drive our economy, but the bottom line is that everybody's going to be looking for food."
As a result, Mr. Pile has started recommending the PowerShares Agriculture ETF (AMEX:DBA) for investors looking for profits, a hedge against inflation, or both. "I think the odds favor making money on both sides."
So far, higher-end food companies like cultured dairy products vendor Lifeway Foods Inc. (Nasdaq:LWAY) have been able to maintain their already solid profit margins by passing rising materials costs on to upscale buyers, CEO Julie Smolyansky recently told Wall Street Reporter. That's been great news for money managers like Mario Gabelli, who picked up the stock when it was trading at around $6; today, shares are over $12.
And for those looking for even bigger returns, companies like premium seafood farmer Australis Aquaculture Ltd. (ASX:AAQ) (Pink Sheets:AUQCF) may be poised to soar in the next few years as American diners' demand for sustainable and healthy food overwhelms wild fish stocks. According to Starwood Research analyst Rick Grubbs, CFA, the stock has the potential to trade at $5-$6 if Australis can meet its goal of growing its sales to $100 million within the next 5 years.
Highlights of Australis Managing Director Josh Goldman's recent interview with WSR include:
-- Management's confidence in the company's ability to meet
revenue targets as awareness of its products "has really
reached that proverbial tipping point" among consumers hungry
for eco-friendly, healthy, and tasty entrees. Sales should be
increasing "in a very significant way" in a matter of months.
-- How a new production facility in Southeast Asia is on track to
boost output by around 10,000 tons a year over the next 5-7
years. "In the company's history, the major constraint has not
been the distribution network or demand," Mr. Goldman says.
"It's really been supply."
-- Why the company's products have the potential to create
blockbuster markets of the future comparable to farmed salmon
or tilapia today. "We are uniquely positioned with both large
scale, knowledge about how to produce the fish, first-to-market
positioning and, we think, a really powerful brand message."
Wall Street Reporter (Est. 1843) is the premier source of investment information on global public companies in high-growth sectors. Through its magazines, special reports, website, and conferences, WSR presents unique opportunities for discovering stocks before they appear on the radar of Wall Street. Visitors to its website, www.wallstreetreporter.com, can listen to and view exclusive audio and video from an extensive library of CEO interviews, analyst roundtables, and conference webcast presentations, as well as subscribe to WSR's "Smart Money Alert."
A current Analyst report on Australis Aquaculture Ltd. is now featured at www.starwoodresearch.com
About Australis Aquaculture Ltd.
Australis Aquaculture Ltd. is an award-winning provider of delicious, healthy, sustainable seafood marketed under the banner of The Better Fish(r): Better Tasting, Better For You, Better For Our Environment. The company spearheaded the introduction of Barramundi in North America and has proudly seen it grow from a favorite in Australia into an international culinary trend.