| Siliconland Wed Mar 28, 2007 9:10 am |
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WFMI Just found this might be interesting.
Since Whole Foods Market (WFMI, news, msgs) announced a sales slowdown last fall, its once-hot stock has wilted like a bag of spinach in the back of the fridge.
Now investors won't go near the nation's leading natural- and organic-food supermarket chain because:
Old-school competitors such as Kroger (KR, news, msgs) and Safeway (SWY, news, msgs) are having success playing by Whole Foods' rules, offering fresher produce, quality prepared foods and better service.
Whole Foods needs to prove it can manage the takeover of Wild Oats (OATS, news, msgs), its first major acquisition.
Despite their recent slide, Whole Foods' shares still trade at 31 times this year's earnings.
But who should buy Whole Foods stock? Anyone who doesn't mind owning a stock that will double in the next three years.
Here is the detail:
http://articles.moneycentral.msn.com/Investing/CompanyFocus/WholeFoodsTheNextStarbucks.aspx |
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| blast_investor Sun Apr 01, 2007 11:43 am |
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My take is to avoid this stock.
This stock has lofty valuation and lots of insider sales and no insider buyings.
This is a high priced stock mainly based on its growth prospect. This is not a typical value stock. |
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| Mosguy Mon Apr 09, 2007 6:38 pm |
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Yeah I agree with blast. Look at the company. Will the demand for organic food really last.
The whole industry sounds like a fad to me. That makes Whole Foods a buy only if the price falls into NNAV category. (Benjamin Graham style)
Just my thoughts. |
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