Sure, I want to buy Hain (HAIN) . It's natural and organic and that's a category that's still selling well at the supermarkets.
But the fact that it hasn't released financials yet concerns me because I have no idea what those financials will say. Have they lost business to others since the SEC decided to examine their books? Has there been any degradation regarding the ongoing issues at Whole Foods (WFM) ? Has there been a price war with a private label, which is always a possibility with the sad numbers that Treehouse (THS) put out recently.
Most important, how will we know if the SEC will actually embrace the internal probe? How do we know if the SEC is satisfied? It isn't like they are going to call Hain and say, "Hey, you guys are cool." There's always last-minute wrangling and tension. There's always concern that they will want certain things to be done differently.
You just don't know what will happen.
So what are people doing buying it? I think they are thinking what I suspect: Everything's fine and it's business as usual.
Yet my discipline says it doesn't matter. I would rather miss 10 points than find myself on the wrong end of the SEC's barrel.
So my advice is simple: You don't know what will happen. You can't know what will happen. So you are rolling the dice. I don't like rolling the dice.
So I am waiting to see before I say thumbs up or thumbs down.
Cocktails & Cramer
Join Jim Cramer on May 23 for an exclusive party at Bar San Miguel, his Brooklyn tavern.
You'll get to watch a screening of Mad Money, after which Jim will arrive fresh off the CNBC set to mingle, pose for photos and answer your investing questions.
Participants will enjoy dinner, drinks, an autographed copy of Jim's book Get Rich Carefully and a free one-year membership to Action Alerts PLUS, Cramer's VIP club for investors. (Current AAP members will receive one extra year of membership for free.)
When: Tuesday, May 23, 6-9 p.m. EDT
Where: Bar San Miguel, 307 Smith St., Brooklyn, N.Y.
Cost: $375 per person
Space is very limited, so click here to reserve your ticket to this exclusive event today.