Back in March, I told you to forget about investing in
Coca-Cola (NYSE:
KO
)
if you're interested in growth. That ship has sailed. [Read the
original article
here
.]
But what a nice voyage it's been...
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A fun fact for all you Warren Buffett fans: Since purchasing in
1988, Warren Buffett has made a total return of somewhere in the
neighborhood of 2,490% on this stock. Not bad. But annualized,
that's only about 14%. That's certainly nothing to sneeze at, but I
think current investors can do better.
I'm not saying this stock will gain 2,500% (I wish), but it does
have serious growth potential. In fact, I think it has the
potential to turn the entire $216 billion soft drink industry on
its head. (And, this time, I'm not talking about
SodaStream (Nasdaq:
SODA
)
, which I profiled in my original "Forget Coca-Cola" article.)
I'm talking about
Stevia Corp. (
STEV
)
.
I've written about this tiny stock in my
Game-Changing Stocks
newsletter a few times in the past, but just to get everyone up to
speed, here's the skinny...
Stevia (the plant) is a member of the sunflower family that's
grown in subtropical and tropical climates. Its leaves are 30-45
times sweeter than sugar, and special compounds within the plant
called steviol glycosides are up to 300 times sweeter than sugar. A
Japanese company, Morita Kagata Kogyo, manufactured the first
commercial stevia sweetener in 1971, and today, stevia (which
sweetens Japanese Coke) accounts for 40% of the overall sweetener
market
there.
Many people (including myself) think stevia will soon have a
wider role in significantly displacing sugar in the United States
as well. After all, reducing sugar-calorie content with an
all-natural substitute while maintaining flavor is a dream come
true for food companies.
Stevia Corp.'s goal is to become the go-to partner for stevia
farmers all over the world, and to produce some of the stevia
itself, which it cultivates in Vietnam.
That brings us to today.
The company has just done a very smart thing. I will be honest,
it kind of caught me by surprise. But after I saw how well the
company was executing the idea, it really made me sit up and take
notice.
In every company, the
CEO
or company president has the potential to serve as the company's
goodwill
ambassador, be it to policymakers, regulators, customers, the
public or investors. And George Blankenbaker, Stevia Corp.'s
president, is doing just that. He's publicly outlining his
company's efforts to commercialize stevia, which begin in earnest
in May. He's talking about what the plant is, how the product is
used, and how it will completely transform the food industry in
true Game-Changer style.
Stevia Corp. is continuing its impressive efforts to
commercialize its key product, which is disrupting the
international market for sweeteners. I've recommended the company
to my
Game-Changing Stocks
readers previously, and my opinion, nothing about its bright future
has diminished.
Shares
are still attractively priced -- and very few companies have, in my
view, the growth potential that Stevia Corp. does.
Risks to Consider:
First off, know that this is a micro-cap stock that trades
over-the-counter. If you're not comfortable with taking a flier on
these shares -- and the volatility that comes with it -- then you
should look elsewhere. That said, I think there's a solid chance
that investors who are willing to take a little "play money" and
devote it to this stock will not be disappointed.
Action to Take -->
I'm going to wait until the company has released all three parts to
Blankenbaker's release, and then I will bring my
Game-Changing Stocks
readers the highlights. In the meantime, I highly recommend that
you think seriously about establishing a modest position as part of
your aggressive growth portfolio. Stay tuned... I think this one is
going to be big.
--Andy Obermueller
Andy Obermueller does not personally hold positions in any
securities mentioned in this article. StreetAuthority LLC owns
shares of KO in one or more if its "real money" portfolios.