Perhaps the more important news item, he contends, was a decision by a Federal judge to deny the U.S. Federal Trade Commission's (FTC) request to block WFMI's takeover of rival Wild Oats Markets.

Says Tracy, "The FTC has been seeking to block the deal, arguing that the merger would be anti-competitive and would result in higher prices for consumers. The FTC's arguments center on the definition of WFMI's market -- whether that market is grocery stores in general or, more specifically, organic grocery chains."

He adds, "WFMI is the nation's largest organic grocery chain. However, the firm is tiny compared to Safeway, Kroger and a host of other major grocery chains. And even after buying Wild Oats, WFMI will still be much smaller than these chains.

Says Tracy, "I continue to believe WFMI is a solid growth story with or without the proposed Wild Oats merger. WFMI benefits directly from Americans' growing interest in eating healthier foods -- sales of organic foods are currently growing at more than three times the pace of grocery sales in general."

The advisor concludes, "And if the Wild Oats merger eventually goes through, then the deal would give WFMI access to new markets and would allow the firm to expand its footprint. The judge's decision makes it far more likely this deal will be completed. With these points in mind, WFMI remains a solid 'Buy' at current levels."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.