William Lucas

Hain Celestial: Did Carl Icahn Call The Top?

Investment Thesis Overview:

The market and sell-side analysts value Hain Celestial (NASDAQ:HAIN) as a high growth play in the attractive organic food space. In reality, HAIN is a low-quality asset aggregator with no competitive moat and an organic growth rate in the mid-single digits (4.1% in 2013). The company has been taking increasingly aggressive measures with both its acquisition strategy and accounting in order to preserve its optics as an attractive growth play, highlighted by its recent large acquisitions in the UK.

The company's history of long-term shareholder wealth creation has been mediocre and it has taken on increasing business risk in the past 12-24 months as the company has been unable to produce meaningful organic growth. Management...

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