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Adding to Natural Foods Holding

Solid 4Q results and expected earnings growth bode well for the shares in coming quarters.
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SunOpta (STKL) posted solid fourth-quarter resultsTuesday night. The stock is currently trading around $5.06,which is 8% off the recent highs.

Now that the results are behind us, we will buy 150 sharesof the specialty foods company after you receive this Alert.We now own 1,300 shares of SunOpta, which accounts for 4.8%of the model portfolio.

SunOpta reported adjusted earnings of $0.07 a share in thequarter, which was in-line with management'spreannouncement. Revenue grew 12%,, year-over-year to $258.5million, including impressive 8.8% organic sales growth.

The company's top-line growth in the quarter was driven byhigher international demand for its natural and organicfoods. On the conference call, management offered a few moredetails about new cost-cutting efforts to help offset risinginput costs.

SunOpta is on track to generate double-digit annual earningsgrowth over the next couple of years and is inexpensive at12x expected 2012 earnings. If management continues toexecute its plan, we believe that the stock can trade backup toward $7 in coming quarters.

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