The organic foods industry has been growing rapidly in the past decade. According to RNCOS, the industry grew at an annual compound growth rate of 18% during 2000-2008, and in the next few years will be growing at around 14% per year. That kind of growth would have most companies salivating.
Let’s pretend you’re a potential Amazon.com investor. You begin your research by typing “Amazon stock” into your favorite web browser, interested to read analyst opinions. I guarantee you’ll find some. And more than likely, you’ll be flooded with articles taking a bearish perspective on the stock, pointing to the company’s high price-to-earnings ratio as a reason to short the stock. To summarize their analyses more »