Some firms operate best under a diversified business model, but the practice can lead to a bemusing product list. For example, there is a successful outfit up in Norval, Ontario that would be glad to fill your order for kosher consumables, silica free loose abrasives, and the design of a system that processes non-woody fibers used in making paper.

SunOpta (NASDAQ: STKL) operates in diverse arenas. The firm's Food group produces a range of natural, organic, kosher and specialty foods, with a focus on soy, corn, sunflower, fruit and oat products. The Opta Minerals group recycles inorganic industrial waste and processes abrasives, roofing granules, industrial minerals and specialty sands. SunOpta BioProcess is responsible for a proprietary steam explosion technology used in the production of pulp and ethanol.

The firm pleased investors earlier in the month, when it announced Q2 EPS of 11 cents and revenues of $208 million. Analysts had been expecting 11 cents and $203 million. Management also guided FY07 EPS to 35-40 cents (36 cent consensus) and FY07 revenues to $775-$800 million ($757.4M consensus). RBC Capital Markets subsequently reiterated its "outperform" recommendation on the issue and boosted its price target to $16. The news popped the shares out of a late July/early August "cup" into the mid-August "handle" of a Cup & Handle formation. Now, the price is showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle."

Altogether, brokers recommend the stock with one "strong buy," three "buys" and two "holds." Analysts see a 37% average annual growth rate through the next five years. The STKL Price to Sales ratio (1.02), Sales Growth rate (33.54%) and EPS Growth rate (37.50%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 66% of the outstanding shares. Over the past 52 weeks, the stock has traded between $8.03 and $14.05. A stop-loss of $10.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.