Dr. Tom Price, current Republican congressman from Georgia, is a pretty savvy investor … no doubt you have heard that the soon-to-be Secretary of Health and Human Services (aka Killer of ObamaCare) has been getting a little media attention for some of his investments — ranging from medical device maker Zimmer to MS drug developer Innate Immunotherapeutics and his support for the recently enacted 21st Cures Act.
Yet, Zimmer is a long established company … one that Speaker Ryan and others have invested in … while Innate is a foreign firm not likely to be impacted by the legislation … plus Dr. Price isn;t the only Republican Congressman investing in Innate.
Thus it is arguable to give Dr. Price any credit for insight that he may have gained as an elected representative as opposed to a knowledgeable investor.
No, Dr. Price is a pretty savvy investor because somehow his timing was right when he purchased stock in WhiteWave Foods on March 17, 2016 ($40/share) … only to have the Danone announce in July it wanted to acquire it for $56/share.
Lucky or smart reading of financial futures ???
Doesn’t matter, Dr. Price is a winner.
But let’s go with an intelligent investor … who recognized the market demand for WhiteWave products which :
Growing a Better Future
Our Silk®, So Delicious®, Alpro® and Vega™ brands drove the creation of the market for plant-based foods and beverages that are changing the very future of food. We see a future in which the foods people love – the foods they choose first – are the ones that are good for their bodies and the planet.
Hmmm … Silk versus milk ? Where’s the trend that investors want to see ?
A recent Neilson survey revealed that in the past five years, sales of “almond” milk grew 250 percent to more than $894.6 million. By contrast, sales of “cow” milk fell 7 percent in 2015.
Yep … doesn’t matter if its cashew, coconut or hemp, consumers seem to be gravitating toward plant-based products to mix in their coffee or pour on their cereal.
And the intelligent investor already knows that the cow is a relatively inefficient converter of grain into protein while the plant-based model is lower-cost … and well as the appeal to consumers concerned with health, environmental and sustainability issues.
OK … we get it … now let’s rephrase the “Silk versus milk” question … What’s the trend in Congress ?
Well, some Members are advocating the FDA to provide consumers with the accurate information on “milk” …
Not really a surprise that legislation has been offered … after all, milk has a clear standard of identity defined as “the lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more healthy cows” (21 CFR 131.110) … while the government has not defined “silk“.
Yep, Members of Congress have written requesting “that the Food and Drug Administration (FDA) exercise its legal authority to investigate and take appropriate action against the manufacturers of these misbranded products.”
Who did not sign the letter … investor Tom Price.
Who did sign the letter … “Representative” Tom Emmer.
Hmmm … a Congressman who typically bemoans regulations and government picking winners and losers in business and consumer decisions, is backing dairy producers.
Yep, the same dairy producers who protest that the government has no business establishing caps on climate-changing methane emissions or reporting of antibiotics use, has found a supporter in Tom Emmer. Probably not a surprise considering that Ag-business contributed over $119,000 to his last election campaign … but think of “Representative” Emmer the next time you buy “milk“ or hear him complain about how regulations are killing business.