Baby boom? How to profit
Posted
Aug 25 2008, 01:43 PM
by
Kim Peterson
Rating:
There's a mini baby boom in the U.S., with a record number of babies born last year. Seeking Alpha looks for some money-making opportunities in the midst of all those diapers. (CNBC ran the same story earlier this month).
Parents don't skimp on their children, consultants tell SA. That's why these companies are good to watch right now:
Martek Bioscience: Develops vegetarian sources of DHA, which is a key ingredient in some infant formulas, foods and dietary supplements. Martek shares are at $35.01, and have just started a downturn after solidly rising for the last year.
Childrens Place: The retail store chain just reported solid quarterly earnings. It's trading at $40.45, and shares have soared since hitting a 52-week low of $15 in January.
Leap Frog: Makes toys and educational products, and is strong on innovation. Shares are at $8.25, up from a low of $5 in January.
Natus Medical: Makes diagnostic products for newborns. Has grown through acquisitions. Nabbed the "BABY" ticker. Trades at $23.48, an impressive climb from $15 a year ago.
Gymboree: Possible turnaround in the cards for struggling children's retailer, but I'm not holding my breath. Trades at $36.25, down slightly from a year ago.
Disney: Owns the ubiquitous Baby Einstein brand. I'm not sure its other properties stand to gain near-term from a baby boom, though. Trades at $31.71, down from the $33 range a year ago.