In his blog on TheStreet.com, Jim Cramer wondered why the most healthy food play, Whole Foods, and the ultimate junk food (or junk beverage) stock, Monster Beverage, both performed well. Cramer has long been behind healthy food stocks, because he sees natural and organic food as a major bull market. However, Whole Foods has been lagging until recently when it reported a turnaround quarter. The natural supermarket was a pioneer, but recently, competition has sprouted up, along with natural and organic offerings at traditional supermarket. Whole Foods seemed to have found its way back.
Monster reported good growth, but on the conference call, management emphasized its deal with Coca-Cola (KO). Cramer wrote, “I have been pushing this beast for ages, and I have been alone in doing so. But with Coca-Cola buying right alongside with me, I don’t feel so lonely.”
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The fact that peer Transocean (RIG) didn’t sink when it reported a writedown might have been an indication of health in the sector, and would be a good sign for Diamond Offshore, if it weren’t for the fact that oil prices are still so low, these stocks may lag for some time before bouncing back.