Else Nutrition Holdings (BABYF) is a young, Israeli-based, plant-based food and nutritional company aimed at babies and toddlers, notes Carl Delfeld, a global investment specialist and editor of Cabot Explorer.

Trading at a market value of only $195 MM, this stock is speculative, but it has a number of characteristics that could be framed as conservative. It is riding the powerful trend of parents wanting more of a plant-based diet for their kids.

Else Nutrition bypasses all the hormones, pesticides, chemicals, dairy, soy issues since it is made from almonds, buckwheat, and tapioca.

I’m also impressed by its growth trajectory, huge markets, top executives with experience at companies such as Abbott Laboratories (ABT) and Mead Johnson, and strong scientific and advisory boards. It has already secured patents in key markets, which are estimated at $80 billion and growing at a 4-5% clip.

Another reason I think there is upside in the stock is the discovery potential. Institutional investors have a very small proportion of issued stock and management owns 41% so they are plenty motivated.

In addition, I’m impressed with the marketing and distribution efforts thus far. Finally, Else may expand the brand to cereal, post-toddler nutrition and nutritional drinks. It’s a good story so let’s begin with incrementally building a half position.

I caution that this is a young company and must be considered speculative stock. For now, I recommending buying half you our intended position.

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