SunOpta (STKL) Rips as Cramer Makes Strong Bullish Case

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STKL Hot Sheet

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SunOpta (Nasdaq: STKL) shares are ripping Monday following a positive mention from investing guru Jim Cramer.

Though he called it a speculative pick, Cramer believes the health food company may be just what the doctor ordered. SunOpta trades at just 14 times earnings but is currently growing at about 30 percent. The company also goes for a 25 percent discount when compared with peers.

Confusion may be the lead factor for investors sitting on the sidelines for this one, Cramer suggested. SunOpta is made up of 23 food companies that were all acquisitions. Further, Cramer said 9 percent of its sales are derived from an unrelated industrial minerals business.

SunOpta does the lions share of its business with such companies as Whole Foods (Nasdaq: WFMI), Costco (Nasdaq: COST), Hain Celestial (Nasdaq: HAIN), and Starbucks (Nasdaq: SBUX).

Last quarter, SunOpta reported a 20 percent increase in revs. Its organic sales saw 9.7 percent growth as well. Margins held firm amid increasing input costs, and the company is getting more streamlined, Cramer continued.

SunOpta shares are up 12.3 percent to $8.31 just following Monday's opening bell.

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