NEW DIRECTIONAL CALL PLAYS

The Hain Celestial Group, Inc. - HAIN - close: 109.21 change: +1.53

Stop Loss: 106.40
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 604 thousand
Entry on November -- at $---.--
Listed on November 10, 2014
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
"Our business continues to benefit from strong growth trends in the organic and natural, better-for-you segment of consumer packaged goods."

That quote is from HAIN's CEO after the company reported its latest earnings results just a few days ago. He's right. Consumers are choosing healthier foods and it looks like a major trend change that could benefit HAIN for a long time.

The company website describes HAIN as, "The Hain Celestial Group, headquartered in Lake Success, NY, is a leading natural and organic food and personal care products company in North America and Europe. Hain Celestial participates in almost all natural food categories with well-known brands that include Celestial Seasonings, Terra, Garden of Eatin', Health Valley, WestSoy, Earth's Best, Arrowhead Mills, DeBoles, Hain Pure Foods, FreeBird, Hollywood, Spectrum Naturals, Spectrum Essentials, Walnut Acres Organic, Imagine Foods, Rice Dream, Soy Dream, Rosetto, Ethnic Gourmet, Yves Veggie Cuisine, Linda McCartney, Realeat, Lima, Grains Noirs, Natumi, JASON, Zia Natural Skincare, Avalon Organics, Alba Botanica and Queen Helene."

HAIN's results have definitely confirmed the trend in consumer spending. They have beaten Wall Street's estimates and guided higher in three out of the last four earnings reports.

The Q4 report in late August this year saw revenues up +26% to $583.8 million. Management raised their guidance as they now expect sales growth of +27% to +30% in 2015.

The company reported their 2015 Q1 numbers on November 6th (last week) and sales are accelerating. Wall Street was expecting a profit of $0.67 on revenues of $640.27 million. HAIN delivered a profit of $0.68, which is a +31% increase from a year ago. Revenues were up +34.6% to $642.6 million. These are really impressive results when you consider that includes a voluntary recall of their HAIN nut butters back in August.

Commenting on their Q1 results, Irwin Simon, Founder, President, and CEO of the company said, "We are pleased with another strong start to our fiscal year across all of our segments on a worldwide basis with the highest quarterly net sales in the Company's history."

"Our diverse portfolio of brands and products across multiple categories and our customer base across various channels of distribution enabled us to deliver double-digit sales growth even with the impact of the nut-butter recall initiated in August."

Accompanying these results their Board of Directors also approved a 2-for-1 stock split but shareholders need to approve an increase in the number of shares outstanding first. That should happen at their annual meeting on November 20th, 2014.

Guidance was only in-line this time but that hasn't stopped shares of HAIN from climbing and two analyst firms raised their price target on the stock ($118 and $122). The point & figure chart is bullish and forecasting at $131.00 target.

Shares of HAIN have been consolidating under resistance in the $109.50-110 zone for the last several days. Tonight we are suggesting at trigger to buy calls at $110.25.

Trigger @ $110.25

- Suggested Positions -

Buy the 2015 Feb $115 call (HAIN150220C115) current ask $3.30

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Intraday Chart:


PowerShares QQQ (ETF) - QQQ - close: 101.96 change: +0.36

Stop Loss: 99.95
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 38.1 million
Entry on November -- at $---.--
Listed on November 10, 2014
Time Frame: exit prior to December option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
The QQQ is the exchange traded fund (ETF) that mimics the NASDAQ-100 index, which is the largest 100 non-financial stocks on the NASDAQ exchange, including both foreign and domestic companies.

The NASDAQ-100 has been outperforming its index brethren this year with the QQQ up +15.5% in 2014 compared to a +9.9% gain in the S&P 500, a +9.4% gain in the S&P 100, a +6.0% gain in the Dow Industrials, and a +0.8% gain in the Russell 2000.

This leadership should continue. Seasonally this is a very bullish time of year for stocks. November is the third best month of the year. We just started the best six months of the year. Midterm years perform even better than normal. Corporate earnings has been strong. Interest rates are low. The Fed remains cooperative. Japan's central bank just announced a massive new QE program that will send more money into U.S. stocks. Europe is on the verge of more QE. There are plenty of reasons to be bullish.

Most of the market does look short-term overbought with a massive bounce from the October 15th low. Yet the QQQ has spent the last several days consolidating gains in a sideways move under short-term resistance near the $102 area. That consolidation is narrowing and the Qs look poised to breakout higher.

Tonight we are suggesting a trigger to buy calls at $102.35.

Trigger @ $102.35

- Suggested Positions -

Buy the DEC $102.63 CALL (QQQ141220C102.63) current ask $1.31

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Intraday Chart: