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Greenberg highlights "red flags" at Boulder Brands, questions gluten-free fad

  • Herb Greenberg takes aim at the "gluten-free gravy train" and Boulder Brands (BDBD +1.7%), pointing out what he says are multiple "red flags."
  • Cited by Greenberg: Growth in receivables outpacing growth in sales, sales growth into the channel outpacing sales growth out of the channel, and a dramatic decline in the rate of sales growth for the Udi's and Glutino brands.
  • Greenberg notes that the company has been very responsive to his inquiries (company responses are in the article) but in the end, the self-proclaimed "hype-buster" says despite BDBD CFO Christine Sacco's claim that gluten-free "is similar to organic in its day," in reality comparing organic to gluten is "apples and oranges."
  • Notably, Greenberg discloses that his daughter is celiac and says "if the general public [tires] of gluten-free, [companies will] all be battling for a real market, among diagnosed celiacs ... which numbers a whopping (wait for it) 3M people."
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Comments (5)
  • LYogi
    , contributor
    Comments (2260) | Send Message
     
    Greenberg ought to educate himself as to the very real gluten 'sensitivity' that is affecting millions more due to the genetic modification of wheat.
    26 Sep 2013, 03:37 PM Reply Like
  • Stephen Simpson, CFA
    , contributor
    Comments (1555) | Send Message
     
    Would you care to explain how that's possible, as GM wheat has *never* been sold commercially anywhere in the world?
    26 Sep 2013, 04:49 PM Reply Like
  • LYogi
    , contributor
    Comments (2260) | Send Message
     
    Read Wheat Belly.
    26 Sep 2013, 05:08 PM Reply Like
  • Brandond
    , contributor
    Comments (376) | Send Message
     
    This company is so overvalued it is scary. $1B valuation and they made $3,000 (yes three thousand dollars) last quarter. Fad or not, this company's future earnings will never support it current valuation. Unlike tech companies with high valuations (LNKD/YELP/FB), BDBD has a large cost of sales to generate revenue; the business can not be leveraged.

     

    Did a lot of research on the company when the bear raid occurred at it went to $8 or so and sold after a nice gain. When the momentum guys go away, watch out.
    26 Sep 2013, 03:43 PM Reply Like
  • hoyt15
    , contributor
    Comments (157) | Send Message
     
    Greenberg really ought to educate himself on accounting (for example, receivables were DOWN at 6/30/13 from 12/31/12), how the grocery industry works, and how brands are built. Management has been astute enough to build outstanding shelf space two times now.....why can't they continue that. I usually like Herb's reporting, but I think this time he must have been paid by the shorties, who claimed $4 ( if not bankruptcy ) due to fraud the last time around. And Brandond is totally wrong on his stats (you forgot that the financial reports are in THOUSANDS?) and his assertions...hey, since he claims to have cleaned up on the last "bear raid", I challenge him to post EXACTLY, in real time, when and at what price he either buys or sells/shorts the stock....not several days or weeks later....let's see how good he really is.
    26 Sep 2013, 07:20 PM Reply Like
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