Comments on: Whole Foods Market (WFMI)

By: Dauphin

Dauphin — Thu, 06 Aug 2009 01:40:36 +0000

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By: red lobster coupon

red lobster coupon — Fri, 25 May 2007 18:17:06 +0000

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By: Alligator Investor

Alligator Investor — Wed, 14 Feb 2007 08:43:58 +0000

Gene,

Nice blog, and nice chart of WFMI. I agree with your analysis. If I were a short-term trader, I would be looking to get long on a thrust above the 50ma, with an initial target of 50.

After that I expect strong resistance at 50, and another decline to test the January lows. If we do get a broad market selloff soon as I expect, this one could tank hard, and fall into a value zone where it might appeal to curmudgeons like me.

By: Gene

Gene — Wed, 14 Feb 2007 00:54:58 +0000

Hey Alligator.
I drew up a chart of WFMI. Looks like it still has some pressure, but once above the 50 day moving average, it could be a good buying opportunity. The chart is on my blog. I enjoyed your valuations of the stock. Good luck with your trading.

By: Alligator Investor

Alligator Investor — Tue, 13 Feb 2007 09:25:51 +0000

Gualberto – Thank you for your intelligent contribution. You have made some good points. I do like WFMI. It is a strong and well-managed company – they have a unique niche and a lot of loyal customers. They have also been treating their employees and stockholders well and I admire that. The only problem I have with WFMI is the valuation of the shares. The grocery business is very competitive, and I think they are facing some serious headwinds going forward. Declining momentum in their growth rate seems inevitable to me. The grocery business is an inherently low-growth proposition. They can’t afford to alienate potential customers in new markets as they have done in Portland.

By: Jeff Ventura

Jeff Ventura — Tue, 13 Feb 2007 01:40:53 +0000

LI — don’t short WFMI, but don’t buy yet either. Put your money somewhere else, like AAPL or some standard, boring mutual fund. Like you, I’m waiting for WFMI to go on sale before getting in. It’s just too pricey right now.

By: Gualberto Diaz

Gualberto Diaz — Mon, 12 Feb 2007 21:53:42 +0000

I think your analysis of the price points between Whole Foods and regular supermarkets is somewhat off. When you compare the same products, as an example let’s use “Tropicana” OJ, Whole Foods will have the same price points as the local supermarket. They have to. Nobody is going to pay a premium to buy a product just for a shopping experience, even in the big cities.

The difference between WFMI and the local supermarket is that the local “cheaper” supermarket shopper sees the Tropicana brand as the upgrade to the generic supermarket brand. WFMI doesn’t carry the generic brand, but maybe a freshly squeezed OJ mix made that morning. So the while they still offer the shopper the ability to buy Trop at a competitive price, they allow the shopper to buy something better at a higher price.

It’s kinda like buying a car. You can a a cheaper car and get it fully loaded and the price would be equal to a basic more expensive car. I think they’ll do fine in the local markets going forward. With regards to Lobsters, I don’t think any mistake they make would be so incorrigible that nobody would shop there. Walmart has proven that. But I feel the stock was priced to perfection, and it’s just a correction as investors realized growth wouldn’t be as fast as they expected.

By: the kid

the kid — Mon, 12 Feb 2007 20:12:47 +0000

Yo get your head out of your ass and go pick up some organic friut and granola, it might help your sluggish (to much fast food buddy) view on this stock….by 2009 WFMI goes to 75 smackaroos a share !!!!!! Whewhew!!!!! Im rich biotch….

By: dedicated granola

dedicated granola — Mon, 12 Feb 2007 18:43:35 +0000

I think it might benefit you to research not just the small town the stores are opening up in, but also to the surronding other towns there. I have known people to drive 100 miles or more to ’stock up’ on wholefoods market products. Just because the town that the store is going to open up in has 200k people the surrounding towns will most likely have another 100-300k people which would then drive up the number of people within a reasonable driving distance. Also, the drop that the stock took after it was anounced the company would not have double digit growth and only single was due (in my opinion) to short term investers getting out to try and make a quick buck somewhere else. Trends like that are what hurt (once again imo) the long term investers. I personally will continue to hold on to my stocks and continue to buy them at this great rate. I see WFMI as a great company with a great mission and awesome potential for growth. Sure 8% growth is not as great as 10% growth; however growth is growth and I am therre for the long term.