"The soaring cost of food isn't just hitting families in the US; it's hitting everyone around the world," says Neil George. Here, in Personal Finance, he looks at some agriculture, chemical and seed plays.
"During the past five years, consumer food costs have soared by more than 117%. And that momentum is increasing; in the trailing 12 months alone, prices surged more than 52%.
"The mega-investors aren't waiting around; they're buying into other parts of the ag business-from grain elevators to ag processors and distributors-as a workaround for such potential regulation.
"You shouldn't be sitting on your hands, either. This food trend is going to be here for a while, so you better stake your claim while buyers still outnumber sellers.
"One way to invest in this trend is to step into companies that are serving the ag producers. This means the companies developing and selling engineered seeds, as well as chemicals and fertilizer products needed to not just grow crops but more bountiful and, therefore, more profitable crops.
Referring to his long-recommended position in YUM! Brands (NYSE: YUM), Louis Basenese exclaims, "I've spent 1,308 days tracking its price movements and written 11,239 words expounding its virtues."
Indeed, the associate Investment Director for The Oxford Club states, "If I could only recommend one stock to own for the next decade, hands down YUM! Brands would be the one."
"YUM! Brands, operator of KFC, Pizza Hut and Taco Bell, is quietly transforming itself into an international juggernaut. Today, roughly half of its operations and profits come from outside our borders. Tomorrow (okay, not that quickly, but soon), more than two thirds of its business will be based outside the United States.
"And the transition and timing couldn't be more perfect. More than half the word's investable market capitalization is now outside the United States. And that percentage keeps growing.
"An area of the market that hasn't been affected by the economic slowdown and isn't correlated with the equities has been the commodity markets. Global demand for commodities has continued to increase.
"This has lead to record highs for most commodities, including soft commodities. We expect this to continue. There are several reasons for this.
"First, emerging markets are developing at a rapid pace and their populations are becoming richer and can now afford to eat better. That leads to higher prices in soybeans, corn, wheat, etc. Second, there are government mandates for producing ethanol which has driven up the price of corn.
"It's time to go value investing," says contrarian Eric Roseman, adding, "It's time to sink your teeth into America's oldest confectionary company" -- The Hershey Corporation (NYSE: HSY).
The editor of the industry-leading Commodity Trend Alert explains, "We love chocolate and want to own a great brand name that is likely to be acquired or partially acquired by a competitor at this low price." Here is his review.
"There's nothing more satisfying than a candy bar -- well, almost. I get even more excited about finding a great company or, in this case, a chocolate franchise selling at a distressed price, paying a nice dividend and home to shareholder activists seeking to boost their return on equity.
"We have regularly sought to identify distressed or contrarian blue chip stocks since 2001. The bottom line has to be deep-value and a strong catalyst for change as corporate earnings perform a 360-degree turn.
"Over the last two years, Hershey's common stock has been a real dog. HSY has shed almost half of its value since 2006, as investors grow frustrated with its board, ownership structure, faltering sales and a rudderless earnings strategy.
"One of the simplest and most genuine global long-term investment stories is the food sector," notes Yiannis Mostrous in Silk Road Investor. Here's a look at two ways to play this trend.
"Long-term, this should reward patient investors handsomely. As the world's population increases, demand will also grow, allowing companies in the food industry to handsomely profitWe continue to favor the theme and recommend you allocate some of your funds to it.
"There are myriad ways to play the burgeoning demand for vital resources used in food production. Our favorite is portfolio holding PowerShares DB Agriculture Fund (AMEX: DBA). It's an exchange traded fund that is based on the Deutsche Bank Liquid Commodity Index.
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"My favorite aggressive idea for 2008 is NutraCea (NASDAQ: NTRZ), a low-priced, speculative issue," says Tom Bishop, editor of BI Research.
"Rice is the most consumed food on the planet and NutraCea has found a way to process rice bran -- 60 million tons of which comes off the rice kernel during the milling process worldwide -- into an extraordinarily nutritious food ingredient/nutraceutical that is also loaded with more than 100 antioxidants.
"The milling process normally triggers an enzyme that makes rice bran quickly (within hours) go rancid and thus it is for the most part discarded the world over. So rice mills will gladly allow NutraCea to build one of its stabilization facilities on site.
Kerr explains, "Our portfolio has already seen some big gains from the agriculture, and we are getting ready to position ourselves for even more gains. How long will the boom last? The honest, albeit unsatisfying, answer is that nobody knows."
The advisor continues, "Growing interest is a good indicator that the grain markets have a good bit of wind at their back. Indicators suggest that we are seeing good momentum in the grain market investment vehicles and likely will for many years to come.
"Meanwhile, there are some key differences about the agricultural trading boom as compared to say the high tech stock frenzy. After all, food, unlike high tech stocks, is not only high in demand; it still remains way undervalued even at current record levels."
A specialist in "breakout" candidates, Leo Fasciocco sees upside potential in Hansen Natural (NASDAQ: HANS), a maker of sodas, juices and teas.
In his Ticker Tape Digest, the technical advisor says, "The company is showing tremendous profit growth. And at current prices, he says, the shares are attractive for value and growth investors.
The company, he notes, has expanded its drink line to include a wide variety of energy drinks, such as the popular Monster brand. Its other products are fruit juice, smoothies, lemonade, iced tea, and spring water -- most of which are sold under the Hansen's brand name.
He points out that the company is also branching out with soy drinks and juices aimed at toddlers.
Technically, he explains, the stock's daily chart of HANS shows a breakout; its momentum indicator is very bullish and getting stronger. The analys adds, "The accumulation - distribution line is making new peaks. That shows the price advance is being supported by good buying."
"This past year, 40 countries faced food emergencies that required external assistance, with the crisis in Darfur being the most visible example," notes Glenn Rogers in an exceptional research effort on investing in the food and farming sector.
The contributing analyst for Internet Wealth Builder offers a basket of stocks involved in the food chain which he feels will help "fatten your portfolio" in coming years.
He notes, "There are a few things you will need to buy to begin growing food. First, you'll need a tractor to prepare the soil." For that, he turns to The Deere Company (NYSE: DE), a firm that has been manufacturing and distributing agricultural equipment worldwide since 1837.
He explains, "The stock has been on a tear this past year and has risen from the mid-$60s to $112. But the p/e ratio is still reasonable at 17.9 and I think the prospects for the company continue to be excellent."
After you've tilled the soil, he continues, the next thing you're going to need is some seed to plant. For that, he turns to Monsanto (NYSE: MON). Rogers explains, "Monsanto is much more than your average seed company in that they use biotechnology to develop the best sorts of seeds available in the world today."
I've just returned from the World Money Show, where some 10,000+ investors gathered to learn about global investing. I had a chance to meet with many of the advisors who were featured at the show, and I am highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.
Although based in Maryland, McCormick and Co. (NYSE:MKC) is indeed a global play. Vahan Janjigian says, "McCormick is the largest global supplier of spices, herbs, and seasonings. Its products are sold in nearly 100 countries."
Individual brands, he notes, include McCormick and Zatarain's in the U.S. and Mexico, Schwartz in the U.K., Ducros in France, Club House in Canada, and Silvo in the Netherlands.
The quantitative analyst and editor of The Forbes Growth Investor explains, "The consumer segment, which generated 55% of first nine months sales, makes, markets, and distributes to grocers, supermarkets, mass merchandisers, drug stores, and other retail outlets.
"The industrial segment supplies the food service industry and food manufacturers with compound flavors. Customers include almost all major American service restaurants and food companies.
Want to hold a small but interesting stock that is rather thinly followed by analysts? Try Texas Roadhouse, Inc. (NASDAQ: TXRH), a casual dining steakhouse that features in-house meat cutting. Pick your own steak and watch it being cooked just for you. All the home-made bread you can eat. Throw your peanut shells on the floor. Average meal price is $14.00. Texas Roadhouse currently has 250 restaurants in 43 states, with plans to open another two dozen before the end of 2006. In addition to steaks, the menu also features beef ribs, pork and chicken. Carnivores rule here.
Texas Roadhouse went public in 2004. The stock split 2:1 on September 26, 2005. Shares have slowed a bit since then. Senior management made a presentation on September 19, 2006 at Bank of America's 36th Annual Investment Conference in San Francisco. Highlights of the presentation are: $600 million in total revenues for 2006. Income from operations is forecast to exceed $55 million (I said it was a small company). Earnings per share should be in the 39-43 cents range. Average per restaurant sales volume for 2006 is forecast at $4 million. Sames stores sales growth is modest at 2-3%.
Currently, Texas Roadhouse serves dinner during the week, but expands to include lunch as well as dinner on weekends. Restaurant stocks are notoriously fickle investment vehicles, but Texas Roadhouse compares favorably with its closest competitors, Outback Steakhouse and TGI Fridays.
TXRH closed at $13.53 on September 19, 2006, up 3 cents per share. 798,041 shares traded hands.
"One of the simplest and most genuine global long-term investment stories is the food sector," notes 
"This past year, 40 countries faced food emergencies that required external assistance, with the crisis in Darfur being the most visible example," notes Glenn Rogers in an exceptional research effort on investing in the food and farming sector.
Want to hold a small but interesting stock that is rather thinly followed by analysts? Try 
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