Friday, August 19, 2005

Meet the Most Controversial CEO in America

Wealth Daily


He's a devout environmentalist and vegetarian but loves Ronald Reagan...

His company was one of the first to initiate an animal humane policy but said dealing with unions was like having herpes...

He thinks Bill Gates has done more for the world than Mother Theresa...

His company's stock (Whole Foods) trades for $131 a share (up from its IPO price of $6)... And he's responsible for a new revolutionary industry that's expected to grow to $30 billion by 2010






Dear reader:

Next to Lee Scott of Wal-Mart, John Mackey is the most hated CEO by organized labor unions.

That's okay, because the feeling is mutual.

Mackey once told a reporter that dealing with unions was like having herpes, saying "It doesn't kill you, but it's unpleasant and inconvenient and it stops a lot of people from becoming your lover."

Not surprisingly, Mackey's political views have also raised eyebrows in the industry he helped create. For instance, he routinely quotes the mother of modern-day libertarianism, Ayn Rand, and admits that he thinks Ronald Reagan was a great president.

Though he despises big government and regulation, Mackey is a devout vegetarian and environmentalist. And he frequently takes off months at a time to hike.

To many, he's a walking paradox.

But to Wall Street, he's the greatest capitalist and wealth creator since Bill Gates.

You see, Mackey is the CEO of Whole Foods, a company that has revolutionized the grocery store industry. Founded in 1980, Whole Foods has become the largest organic food company in the world.

In fact, in terms of market capitalization, Whole Foods is now the 3rd largest grocery store chain in North America. Only Kroger and Safeway are bigger. Pretty remarkable considering that Kroger and Safeway have been in business for a combined 201 years. Whole Foods has been in business for just 25.

Even more remarkable is Whole Foods' stock. It has gone from its IPO price of $6 to over $139 a few weeks ago.



But there's more.

Mackey and Whole Foods now sit on top of a multi-billion dollar organic food industry that's growing by leaps and bounds every year.

Now before we go one step futher, I must tell you that I'm not recommending you buy Whole Foods stock. But I have to tell you the story of Mackey and Whole Foods so you understand exactly why I'm so bullish on another organic store stock.
Natural Food Fact #1:
"The organic industry is big and still growing. The newest Whole Foods Market in New York city is more Costco-sized than Manhattan cramped - it boasts 60,000 square feet. The $4 billion-a-year organic food giant is poised to get even bigger on the national level, riding - if not leading - the wave of the organic boom." -MSNBC, Dec. 2004
Because this organic store stock I'm recommending right now has the potential to go up +1,371% in a few short years!

The stock, which trades for just $1.22 a share, has been public since December 2000. During that period, it has finished every single year with a gain.

Take a look:

4 Straight Years of Gains

Canadian Organic
Store Stock
Gain
2001+55%
2002+76%
2003+8%
2004+48%
2005+36% (YTD)




I know, the stock is cheap... insanely cheap.

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But the organic food market - along with an even bigger industry known as L.O.H.A.S. - are in the beginning phases of what I consider to be a "mega-trend." And some experts are predicting that the organic food industry, along with LOHAS, will grow to $300 billion in annual sales by 2010.

Yet aside from Whole Foods, the organic and natural food industry is relatively unknown to investors.

And that's a golden opportunity for early investors to make huge sums of money... investing in a hot and young industry before everyone else.

Like Investing in Internet Stocks in 1994

The closest competitor to Whole Foods in the US is a company called Wild Oats (OATS - NASDAQ). Wild Oats operates 108 organic food stores in North America. It trades at a market cap of $325 million compared to $8.6 billion for Whole Foods. Wilde Oats' stock trades for $12 a share, compared to $131 for Whole Foods.

And the tiny Canadian organic store company I'm recommending? It trades at a market cap of just $24 million.

It's small... undiscovered... and following the same path to success as Whole Foods. In a moment, I'll tell you more about this tiny organic store stock. But first, you need to know more about the Whole Foods story so you know the full potential of the stock I'm recommending right now.

The greatest Cinderella Story on Wall Street You Never Heard About

Natural Food Fact #2:
"The US organic food industry is worth an estimated US$9bn (9.57bn [euro]) a year, and although it currently only represents a mere 2% of the total US food industry, it is set to explode in the coming years." -EuroFood Report
Thirteen years ago, an unknown company in an unknown and unproven business went IPO on January 23, 1992. On that day, many Wall Street brokers laughed, calling the company - and the business it was in - a joke. Some even said the stock would go to zero because its business would never catch-on in America.

For a while, it looked like the critics were right. Nine days after its IPO, the company's daily trading volume dried up to 12,500 shares, after doing more than 2 million shares its first day trading.

A year later, on February 1, 1993, the company posted one of its worst volume days ever, just 1,400 shares were traded. Nobody wanted to own the stock.

Take the Organic Stock Test

Most of you have probably heard of Whole Foods before. Chances are, you may have even shopped there. But can you name the #2 organic food grocery store chain in North America?

It's Wild Oats (OATS - NASDAQ), and though it's Whole Foods' biggest competitor, I guarantee not 1 in 100 Americans have ever heard of it before.

To give you an idea of the disparity between the 2 stocks, Whole Foods trades for $131 a share, Wild Oats trades for $12 a share.

Both stocks are up YTD, +44% and +63%, respectively.

Okay, now that you know the #1 and #2 organic food stores in North America, can you name the #3 player in the market?

Trust me, you won't be able to.

The #3 organic store player in North America is completely under the radar screen of Wall Street. It trades for just $1.22 a share. And I'm recommending it to all of my readers, because as the organic food industry picks up steam, I think this stock is going over $16 a share.
By 1995, the company experienced the biggest insult it would ever endure by Wall Street. Investors had turned so bearish on the company that its stock was trading at a 3-year low. it was trading even below its IPO price of 1992!

Were the skeptics right?!?

You see, the company I'm talking about is Whole Foods... and the business it's in is organic food.

Today, Whole Foods is the most successful organic grocery store chain in the world, doing $4.2 billion in sales a year, up from $633 million it did in 2000.

The critics turned out to be completely wrong.

Today, a Whole Foods store can be found in nearly every single US state. The stock trades for $131 a share. And the company is the most profitable grocery store chain in America.

And the success of Whole Foods - as well as the much publicized obesity epidemic has created an organic and health revolution. The tiny organic store stock you'll read about in this exclusive report is being called the "Whole Foods of Canada."

Business Edge Magazine says its "Canada's fastest growing health-food store chain" and "is well on its way to major-league status."

And I couldn't agree more.

In fact, the company is not only the fastest growing health-food chain in Canada, but growing faster than any organic food chain in the US too.

You'll soon see why.

Natural Food Fact #3

"The organic food industry has been growing remarkably for the past several years. The market has grown by 30% in value since the year 1997-98 and again by 32.6% in the year 2001-02. According to Nutrition Business Journal of San Diego, California, U.S. consumer sales of organic food in 2003 was $7.9 billion as compared to the sales in 1997 at $3.7 billion. The market for organic foods and beverages is still growing at a rapid pace and is expected to generate sales of $32.3 billion by 2009, according to a new report from 'Packaged Facts'. Against the 2 to 3 percent growth in the conventional food industry, the organic industry has been experiencing annual growth between 17 and 22 percent over the past several years.

One of the key factors behind this growth is, the increasing consumer awareness of health and environmental issues along with an increasing resistance towards genetically modified food products and GM farming. The aggressive and targeted marketing and promotion by the retail sector is also an important factor. Also, the fact that the country's leading food manufacturers are now diverting their attention to developing organic product lines is also assisting the growing figures." -Research and Markets, March 2005
Four years ago, the company started with one store in Edmonton. Demand for its organic and natural food products were so high, the company opened 2 new stores in 2002.

By 2003, the company was operating 4 organic food stores... with plans to open more.

Through an aggressive acquisition plan (similar to Whole Foods) the company now has 54 stores under its belt. And even that isn't enough to meet the growing demand.

No wonder the company's sales have grown a breathtaking 700% in the past 4 years.

And the reason the company's sales have grown so dramatically is because it's in one of the hottest and youngest industries in the world - LOHAS.

The LOHAS Code

LOHAS stands for "lifestyles of health and sustainability."

It may be the biggest market you have never heard of, encompassing things like organic foods, energy-efficient appliances and solar panels as well as alternative medicine, yoga tapes and eco-tourism. The company, which will release an updated estimate later this year, figures that the total market has grown by double-digit percentages annually.

In an annual study of the Lohas market, the Natural Marketing Institute, a research and consulting firm in Harleysville, Pa., estimated that 68 million Americans, about a third of the adult population, qualified as Lohas consumers, the kind of people who take environmental and social issues into account when they make purchases. That was up from 30 percent a year earlier.

The LOHAS marketplace is currently broken down into 5 specific segments. They are.

Healthy Lifestyles
  • Natural, Organic and Nutritional Products
  • Food and Beverage
  • Dietary Supplements
  • Personal Care

    • Total U.S. Market Value = $27.81 billion
Sustainable Economy
  • Green Building and Industrial Goods
  • Renewable Energy
  • Resource-Efficient Products
  • Socially-Responsible Investing
  • Alternative Transportation
  • Environmental Management

    • Total U.S. Market Value = $76.47 billion

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Ecological Lifestyles
  • Ecological Home and Office Products
  • Organic/Recycled Fiber Products
  • Environmentally Friendly Appliances
  • Eco-Tourism and Travel

    • Total U.S. Market Value = $81.19 billion

Alternative Healthcare
  • Health and Wellness Solutions
  • Acupuncture, Homeopathy, etc.
  • Holistic Disease Prevention
  • Complementary Medicine

    • Total U.S. Market Value = $30.7 billion

Personal Development
  • Mind, Body and Spirit Products
  • Yoga, Fitness and Weight Loss
  • Spiritual Products and Services

    • Total U.S. Market Value = $10.63 billion

As you can see, these aren't just random, unrelated products and services.

These are interconnected markets that represent and cater to a real lifestyle. A lifestyle with hefty demands - and deep pockets.

It's no secret that LOHAS consumers are willing to spend more than other consumers in order to maintain their lifestyle demands.

These consumers are willing to spend more on their food, transportation, health - even their spiritual well-being.

Of course, don't just take my word for it.

Walk into any Whole Foods Market and look at the prices.

Organic cereal at a 250% price premium... organic produce at a 125% price premium.organic beef, in some instances at a 300% price premium.

And the shelves are nearly empty by Sunday evening!

Look at the increased demand for alternative health and wellness.

According to a 2002 National Health Interview study, an estimated 8.2 million U.S. adults have used the alternative therapy, acupuncture.

A typical acupuncture session (depending upon what's being treated) can run anywhere between $65 to $125 per session.

Some patients only require a few sessions, others could require as many as 2 to 3 per week for as long as 3 months. In which case, a particular LOHAS consumer could pay as much as $4,500 for a 3 month session.

And the jury is still out as to whether or not acupuncture is even effective for most people.

(Though on a personal note, I can tell you that a 2-month run of sessions did wonders for an old sports injury of mine. And the money I'm saving on muscle relaxers is more than making up for the cost.)

Point is, not only are LOHAS consumers determined to maintain their lifestyles - they're willing to do so, it seems.at any cost.

And that's some sweet music to the ears of all these new LOHAS companies coming up right now.

Especially that company I told you about earlier.

As I said, this new LOHAS superstar is mirroring the Whole Foods model in many respects.

But that's only half the story.

Of course modeling your growth plans after a success like Whole Foods is a great way to go - especially in a market that isn't yet oversaturated with competition.

But what makes this company even more attractive is that its growth rate actually seems to be moving at a faster pace than Whole Foods.while still increasing its profits every year for the last 5 years.

Though in all fairness, the influence Whole Foods Markets has had on the LOHAS marketplace has been so massive, many of these new companies are finding it easier to get a foothold.

Many of the obstacles have already been cleared. And any mistakes that were made along the way don't have to be duplicated.

This is one of the reasons this Canadian organic store stock has been able to expedite its growth rate.

Another reason, and probably a more notable reason is that this particular company has segmented market strongholds where Whole Foods and similar LOHAS retailers have yet to stake their claim.

It's almost as if you wanted to open up a fast food restaurant in a location where there were no McDonalds, no Taco Bells and no Wendy's - and actually found such a place.

Though it is hard to imagine such a place could exist anywhere in the world nowadays.

But in the LOHAS world, such a place does exist - and it's been claimed by a savvy new LOHAS firm that, by the end of the year could be worth double what it's worth now.

Now I know a lot of you have never heard of LOHAS before. That is - unless you've been reading my weekly column on Wealth Daily, called Green Chip Review. But I want to take a moment and explain some of the history of the LOHAS movement.

The Birth of an Industry

Back in 1994, anthropologist and sociologist Paul Ray, Ph.D., executive vice president of American LIVES, a research firm in Oakland, Calif., began a lengthy national study of American values.

Ray's research reshaped theories about American culture and revealed an emerging cultural phenomenon called the "Cultural Creatives" - a slice of the American population comprising 50 million people... or 26 percent of American adults.

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Of the three major cultural groups Ray identified, the Cultural Creatives were the fastest growing and the most surprising. Ray found that essentially media and social analysts had failed for some time to recognize that issues popular in the 1960s, such as health and ecology, had survived, taken root and evolved to become governing principles for many people-the group Ray calls the Cultural Creatives. What is astounding is the speed with which the group appeared, moving from less than 4 percent of the population in the 1960s to more than 24 percent in the 1990s, a new record for such a population trend.

"The appearance of the Cultural Creatives in America is a very hopeful thing for our society, for it offers a chance to create a more positive new culture," Ray said in the February 1997 issue of the marketing magazine, American Demographics. "Business can play a major role in that cultural development and operate at the leading edge of many consumer markets by catering to the new values."

Consider these market statistics: HealthFocus, a research firm in Des Moines, Iowa, reported that 61 percent of Americans have visited a natural foods store in the past year, and 12 percent shop these stores at least every two weeks.

Also, the percentage of shoppers who occasionally patronize natural foods stores increased from 33 percent in 1994 to 40 percent in 1998. And Sixty-nine percent of Americans used some form of complementary and/or alternative medicine in the last year, according to a recent Stanford University study.

Even social investing grew from $639 billion to $1.2 trillion in two years, according to the Hartman Group in Bellevue, Wash.

So as you can see, this is a huge market. And because of this, I'd like to invite you to a unique service dedicated in finding the most promising LOHAS stocks in the market today.

Turning the Green Movement into Mountains of Greenbacks

Let me introduce myself. My name is Jeff Siegel.

I worked for Agora Publishing between 1994 to 2001, studying the financial markets from some of the top investment minds in the world.

For the past 4 years, I've been traveling the world investigating the state of the organic and natural food markets.

My travels took me to Rome to London to New York... to finally Austin, Texas, headquarters to the king of the organic food industry, Whole Foods.

It was there that I had a revelation: The organic and LOHAS industry is a mega-trend that'll be around for decades.

But it is what I discovered after I returned from Austin that persuaded me to start Green Chip Stocks.

Aside from Whole Foods and maybe Wild Oats, nobody knew the first thing about the exploding organic and LOHAS capital markets. Nothing.

Now, I was taught at Agora that the time to invest in a stock or industry, is when nobody is talking about it. You sell it when everybody is talking about it.

And that's why I'm writing to you today.

I have 4 reports I want to give you for joining my new investment service, Green Chip Stocks.

The first report I want to give you is LOHAS Profits: 11 Green Chip Stocks for 2005.

This report features my favorite LOHAS stock, "the Whole Foods of Canada." Trading for $1.22 a share, I think this stock is a blockbuster. and could return over 1,300% in the coming years.

But there are also 10 more LOHAS stocks I think are worth owning right now.

You'll get all 11 when you become a member to Green Chip Stocks.

Organic Revolution
Growing annually by 20 percent or more since 1990, the organic food market is one of the fastest growing segments of the LOHAS marketplace. And that's why I dedicated a report solely to the Organic Revolution.

In this report, you'll see specifically why this market is so revolutionary and so profitable. From an aging baby-boomer population to concerns over Mad Cow Disease and genetically-modified foods to securing a sustainable and stable agricultural infrastructure, the Organic Revolution report validates the long-term potential growth and profitability of the organic foods market.

11 LOHAS stocks
Despite the LOHAS market's rapid growth rate, there are still only a handful of profitable LOHAS stocks to choose from. Yet nearly all of these stocks are trading at ridiculously low levels. For now! In the next few years, well-established, profitable and aggressive LOHAS stocks are going to skyrocket. And those who get it now are in for a long and profitable ride.

From natural and organic foods to renewable energies to LOHAS lifestyle companies, these stocks represent the next generation of explosive LOHAS gains.

Predicting Trends
As with any industry, foresight is the key to consistent profitability. And while the LOHAS market is still in its infancy - Green Chip investors have to continue to look ahead and predict the new trends, as well as profit from the current ones.

This report outlines three little-known LOHAS markets that have the potential to become as big as organic food and renewable energy over the next few years. Publicly-traded companies in these markets are few and far between. But identifying the innovators now is your key to cashing in on the winners tomorrow.

Green Economics
The LOHAS marketplace can be broken down into five segments - all of which make up a combined worth of $226.8 billion.

In this report, these five segments are outlined and are used to illustrate the microeconomic systems within the LOHAS economy and how these systems will integrate and grow for decades to come. There is no greater validation of the LOHAS impact than green economics.

So what do you have to do to get all 4 reports?

Simply fill out your membership form, and I'll immediately send you a username and password that'll give you access to all 4 reports.

Plus, when you join Green Chip Stocks, you'll be entitled to receive my members-only weekly letter, which updates you on current positions and alerts you to new stocks I'm recommending.

So, you get the 4 reports plus 52 issues of Green Chip Stocks.

Not a bad deal... for just $199 a year. That's right, you get a full year of Green Chip Stocks for only $199.

Think about that, each issue of Green Chip Stocks costs you just $3.83. For that, you get my exclusive analysis of the more than $200 billion a year LOHAS industry.

Don't wait.

Last week, the Whole Foods of Canada stock hit a record high. The stock has never looked better.

Get it now while it's still trading in the single-digits.



Sincerely,


Jeff Siegel

P.S. I know many of you are unfamiliar with the LOHAS industry and much of its terminology and jargon. But I'm here to help you. In addition to the 4 reports you'll receive when you join Green Chip Stocks, I'll throw in my Green Dictionary, which explains all of the terms frequently used in the LOHAS market.




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