GO
Loading...

Flash freeze fallout: Inside insights from Hain

Thursday, 22 Aug 2013 | 6:50 PM ET
Hain CEO: Very disappointed by Nasdaq glitch
Thursday, 22 Aug 2013 | 6:45 PM ET
Hain Celestial CEO Irwin Simon discusses the glitch on the Nasdaq today, the hottest products in Hain's lineup and sales growth in the UK. "Consumers are buying more and more natural and organic products," he says.

(Click for video linked to a searchable transcript of this Mad Money post)

Immediately after the so-called 'Flash Freeze' in which the Nasdaq halted trading for over 3 hours, Cramer spoke with a CEO whose stock trades on the exchange.

In an exclusive interview on Mad Money, Irwin Simon, the chairman and CEO of Hain Celestial said, "It is pretty surprising that this happens in this day (and age). If that happened at Hain I'd be in a lot of trouble. My customers expect quality."

And as a client of Nasdaq he added, "As a CEO I expect my stock to trade the whole day. A day after earnings when you're not trading the whole day -- (it's) disappointing."

Simon was, however, able to laugh a little, too. He also said, "I thought there was so much excitement about Hain (earnings) that we froze the Nasdaq!"

On Mad Money, Cramer always looks at a stock's viability for investors, and in this case he believes this natural and organic food seller could sate a buyer's appetite for gains.

First, Cramer thinks the growth potential for this company could be enormous.

That's due in part to the company's leadership position in healthy eating, an investable theme that Cramer believes is in its earliest stages.

"The growth here is all about expanding further into new categories, like baby food, and creating new products that can be picked up by more and more supermarkets," he said.

---------------------------------------------------------
Read More from Mad Money with Jim Cramer
Cramer: I'm plumb out of sectors worth buying
As Europe turns, so should this stock, says Cramer
Cramer rethinks retail, spots new trend
---------------------------------------------------------

Also Cramer believes Hain has strong growth potential, overseas.

"Hain gets almost 35% of its sales from Europe, mostly the United Kingdom. Hain has been struggling on the continent, but you know I believe that Europe has a genuine turn going on, and that could mean terrific upside for the company."

Adam Jeffery | CNBC

On top of that Cramer thinks the stock could command a premium as a 'best of breed' player.

"These guys really know what they're doing, they are the unparalleled experts," Cramer said. Therefore, Cramer thinks the Street could reward the stock "

Of course the Mad Money host never advocates chasing a stock; and if you were to buy at current levels you'd be chasing. Shares popped 10% after the company reports a stronger than expected quarter.

"Hain delivered a 3-cent earnings beat off of a 62-cent basis, its revenues roared higher, up 32.1% year over year, and management's guidance was substantially better than the market was looking for," Cramer said.

Nonetheless, Cramer thinks this stock belongs on your radar. "I could easily see the it trading up to 30 times earnings over the next few months," Cramer said.




Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

  Price   Change %Change
HAIN
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.