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The author of Stockerblog worked for over 20 years in the financial industry as a stockbroker, investment advisor, Vice President of a San Francisco money management firm, mutual fund wholesaler, and market maker on the Pacific Stock Exchange. He has written articles for the Bond and Share... More
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  • Lose Abdominal Fat With Green Tea ~ Make Your Stock Portfolio Healthy 0 comments
    Jul 18, 2013 5:19 PM | about stocks: HAIN, SBUX

    Drink Tea for Weight Loss

    According to a study by Peking University and other institutions, the catechins in green tea can cause weight loss. The research showed that adults who consumed the catechin-rich tea beverage lost significant amounts of abdominal fat as well as overall body fat when compared to the control group. What was interesting is that neither the green tea group nor the control group was asked to exercise or change their daily diet.

    Other Benefits

    Not only are the catechins in the green tea helpful for your health, but the caffeine can also provide additional health benefits. Studies have shown that caffeine can help prevent strokes, due to the anti-inflammatory effects of green tea and its blood circulation control. In addition, caffeine may help prevent skin cancer, according to a study in the Journal of the American Association for Cancer Research.

    The Tea Stocks

    For the investor looking for a way to get into the green tea industry, the options are fairly limited. For example, Argo Tea is a chain of tea shops operating in Chicago, New York, Boston, and St. Louis, but they are privately held. Bigelow Tea Company which owns the only tea plantation in the U.S., is also privately held. Fortunately, has turned up a list of ten publicly traded companies involved in the production and sale of tea.

    Unfortunately, most of the stocks are overseas companies, which makes it hard for American investors to invest in. There is of course Starbucks (NASDAQ:SBUX) which owns Tazo Tea Company. Starbucks bought Tazo in 1999, and open the first Tazo tea shop in 2012. Starbucks trades at 34.7 times trailing earnings and 25.8 times forward earnings. It pays a dividend yield of 1.2%. For the latest reported quarter, earnings spiked up 26% on a 11.3% rise in revenues. Starbucks reports earnings on July 25.

    Another major player in the tea area is The Hain Celestial Group (NASDAQ:HAIN), which owns the Celestial Seasonings tea company. The company sells green tea along with other types of tea and herbal teas, known as tisanes. The natural food company Hain Food Group took over Celestial in 2000. Hain trades at 30.8 times trailing earnings with a forward P/E of 25. Earnings for the last reported quarter were up an incredible 68.9% on a 21.4% boost in revenues. The company's next earnings announcement will be held on August 19.

    Ito En (OTC:ITOEF), which trades over-the-counter, is based in Tokyo and is the largest green tea distributor in Japan. The stock trades at 18.8 times earnings. Revenues for the latest reported quarter were up 9.6%, with earnings jumping 14.9%.

    There are several other tea companies that can be found on the free list of tea stocks at The list includes the stock ticker symbol, the P/E ratio, the forward P/E ratio, and the yield. Let's hope High Tea gives new meaning to your stock portfolio.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: HAIN, SBUX
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