Continue reading Short City: Whole Foods

Short City: Whole Foods originally appeared on BloggingStocks on Thu, 23 Sep 2010 15:00:00 EST. Please see our terms for use of feeds.

"One of ace investor Peter Lynch's favorite business models is the "cookie-cutter," which simply involves building the same successful store again and again in new places; McDonald's perfected the model, and Whole Foods Market (WFMI) is following the same profitable path, though at a higher price poin," says Timothy Lutts, who has chosen the stock as his featured monthly buy recommendation.

The editor of Cabot Stock of the Month explains, "McDonald's competed on price; Whole Foods competes on quality, targeting the consumer who wants healthy organic food and will pay more to get it.

Continue reading Whole Foods (WFMI): Quality Formula for Success

Whole Foods (WFMI): Quality Formula for Success originally appeared on BloggingStocks on Fri, 04 Jun 2010 13:30:00 EST. Please see our terms for use of feeds.

The article discussed the elimination of personal check-writing at retail points of sale. A few Whole Foods Market (NASDAQ: WFMI) locations, as well as 70 Fresh & Easy supermarkets in California, are no longer accepting checks as a viable form of payment. Whole Foods is apparently taking the idea out for a test run, but Fresh & Easy seems to be more serious about the idea.

Continue reading Should shareholders of retail stocks pressure managements to drop check acceptance?

Should shareholders of retail stocks pressure managements to drop check acceptance? originally appeared on BloggingStocks on Tue, 22 Sep 2009 15:40:00 EST. Please see our terms for use of feeds.

Michelle Obama has made healthy eating a priority in her role as first lady. Her emphasis on the earth-to-table approach to dining emphasizes local and organic ingredients -- and fits squarely with the mission of Whole Foods Market (NASDAQ: WFMI).

Obama's White House garden is great top-of-mind stuff and demonstrates the value of a healthy lifestyle. It may not be for everyone, but there will be enough followers that will think more and more about going organic.

Continue reading Obama stock #4: Whole Foods Market (WFMI)

Obama stock #4: Whole Foods Market (WFMI) originally appeared on BloggingStocks on Sun, 14 Jun 2009 11:00:00 EST. Please see our terms for use of feeds.

In a difficult economic environment, it is often wise for investors to consider stocks in more defensive and relatively recession-resistant sectors. And one such area is food and beverage stocks.

As the long-standing market maxim goes, consumers can pull back on spending for vacations, remodeling, and new cars, but they still need to eat and drink.

In that light, I turned to nine leading newsletter advisors who serve up their current favorite ideas in the food and beverage sector:

Continue reading Food for thought: Best buys in food & beverage

Food for thought: Best buys in food & beverage originally appeared on BloggingStocks on Fri, 24 Apr 2009 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Whole Foods Market talks settlement with FTC

Whole Foods Market talks settlement with FTC originally appeared on BloggingStocks on Fri, 30 Jan 2009 12:50:00 EST. Please see our terms for use of feeds.

Whole Foods (WFMI) a takeover target? originally appeared on BloggingStocks on Thu, 08 Jan 2009 13:11:00 EST. Please see our terms for use of feeds.

Yuppie organic food market, Whole Foods (NYSE: WFMI) has been struggling with the slow economy. After all, the company that has jokingly been referred to as Whole Paycheck for its high prices has lost business as people have cut back on spending. Now, a private equity firm has stepped in to do a rare Private Investment in Public Equity (PIPE) deal -- buying 17% of its shares which boosted Whole Foods stock 19.8% after-hours.

Who would do such a thing? An affiliate of Leonard Green Partners, Green Equity Investors V, spent $425 million for its Whole Foods PIPE. Why did Leonard Green do this? Does it expect to take an active role in managing the company and somehow pull it out of its growth slump? Or is its 17% stake simply a passive investment -- and a bet that Whole Foods has bottomed out?

I think Leonard Green may have gotten a bargain. Whole Foods stock fell 6.2% during regular trading after it lowered its 2009 EPS estimates from $1.04 to between $0.95 and $1 -- it earned 82 cents a share in 2008. And based on that lower growth rate, Whole Foods trades at a PEG ratio of 0.6 -- on a P/E of 9.8 with earnings forecast to grow 16% in 2009.

Continue reading Private equity firm takes a bite out of Whole Foods

Private equity firm takes a bite out of Whole Foods originally appeared on BloggingStocks on Wed, 05 Nov 2008 19:47:00 EST. Please see our terms for use of feeds.

Trade idea for Whole Foods (WFMI) upgrade originally appeared on BloggingStocks on Mon, 21 Jul 2008 13:38:00 EST. Please see our terms for use of feeds.

Whole Foods Market (NASDAQ: WFMI) is expected to report Q1 EPS on February 19.

THNK says: "Recession could prove not as bad for WFMI as some might expect."

WFMI March option implied volatility of 55 is above its 26-week average of 42 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: Whole Foods volatility elevated as expected into EPS originally appeared on BloggingStocks on Thu, 14 Feb 2008 13:45:00 EST. Please see our terms for use of feeds.

Whole Foods Market (NASDAQ: WFMI) is banning plastic bags from its 270 locations. The switch to a choice between reusable bags and paper will take effect on Earth Day, April 22.

It's certainly a bold move and demonstrates a lot of concern for the environment. It will also spruce up Whole Foods' image as an environmentally-conscious retailer and generate a ton of free publicity for the company, starting with the New York Times story.

Whole Foods has served as a trend-setter for the larger grocery chains, and this move could inspire stores like Kroger (NYSE: KR) and Safeway (NYSE: SWY) to make similar switches, depending on how it works out.

During its trial runs, Whole Foods found that eliminating plastic only led to a 10% increase in paper bag use, demonstrating that consumers tend to switch to the reusable bags.

That's good for the environment, and it also cuts costs: Even Wal-Mart (NYSE: WMT) has taken notice by phasing in reusable bags as a third option. The plastic bag seems destined for obsolescence.

The 21st century may be the end of the "Plastics, young man!" era.

Whole Foods Market goes plastic bag-free originally appeared on BloggingStocks on Wed, 23 Jan 2008 11:33:00 EST. Please see our terms for use of feeds.

When a corporate executive begins to embrace the communication medium known as blogging, the world is generally a better place. In general, executives who blog are free from marketing censors and fluff that masks most corporate information -- from press releases to scripted quarterly results announcements.

Well, that is until one of them starts blogging anonymously in order to slam the competition and spread FUD all over the place. Mr. Mackey was caught red-handed this past summer posting anonymously to Yahoo!'s (NASDAQ: YHOO) finance message boards in relation to badmouthing natural food grocery competitor Wild Oats for a period of seven years. Mackey did not reveal that it was himself disparaging his competition at the same time Whole Foods Market (NYSE: WFMI), the company he founded in 1980, was considering a merger with its largest natural foods competitor.

Continue reading Money Losers of 2007: Whole Foods CEO John Mackey

Money Losers of 2007: Whole Foods CEO John Mackey originally appeared on BloggingStocks on Sat, 22 Dec 2007 17:10:00 EST. Please see our terms for use of feeds.

Whole Foods (WFMI) falls heading toward Q4 earnings originally appeared on BloggingStocks on Mon, 19 Nov 2007 16:25:00 EST. Please see our terms for use of feeds.

At least it's good to see that the board at Whole Foods takes ethics seriously, and is willing to take actions to ensure that its executives don't do anything to jeopardize the company's reputation or get it in trouble with regulators.

Overstock directors: Where are you?

Whole Foods bans executives from message boards originally appeared on BloggingStocks on Wed, 07 Nov 2007 12:41:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lululemon (NASDAQ: LULU) was initiated with a Neutral rating at Merrill Lynch. CIBC believes the company is well-positioned to replace its Canadian success in the U.S. market and started shares with a Sector Outperformer rating and $39 target. The stock was started at Wachovia with a Market Perform rating on valuation.
• Citigroup finds Domino's Pizza (NYSE: DPZ) compelling for long-term investors given the company's solid cash flows, above-average margins, and international growth opportunity. The firm initiated shares with a Buy rating and $22 target.
• RBC Capital started shares of Kenexa Corporation (NASDAQ: KNXA) with a Sector Perform rating and $32 target, citing lack of visibility into the company's product roadmap.
• RBC initiated shares of Omniture Inc (NASDAQ: OMTR) with an Outperform rating and $33 target. The firm believes Omniture is well-positioned given cross selling opportunities, best in class products, strong secular trends, and expanding client roster.
• News Corporation (NYSE: NWS) was initiated with a Buy rating and added to Stifel's Select List. The firm believes the FOX TV Network, stations and FOX News can garner an incremental recurring 100% margin retransmission and affiliate fees totaling $1B by 2010, adding that its sum-of-the-parts model for News Corp captures the value of $8B of "hidden" assets, yielding a fair market value of $30-$31.

• CRT Capital initiated shares of Navistar (NASDAQ: NAVZ) with a Buy rating and $75 target.
• JP Morgan started shares of Dice Holdings (NYSE: DHX) with an Overweight rating.
• Think Equity started shares of Whole Foods Market Inc (NASDAQ: WFMI) with an Accumulate rating and $51 target.

Analyst initiations 9-5-07: LULU, DPZ, KNXA, OMTR and NWS originally appeared on BloggingStocks on Wed, 05 Sep 2007 11:22:00 EST. Please see our terms for use of feeds.

"Whole Foods Market (NASDAQ: WFMI) has rallied recently due to two main factors: a better-than-expected earnings report released in early August coupled with a breakthrough on WFMI's deal to acquire rival Wild Oats Markets," notes Paul Tracy.

The editor of StreetAuthority Market Advisor, plains, ""Whole Foods reported same-store sales growth of 7% in the second quarter. That's not quite as strong as the 9% reported a year ago, but it still represents solid growth and was above what analysts had expected."

He adds that wWhile earnings fell on a year-over-year basis, that was due mainly to costs associated with WFMI's new store openings. These costs, he suggests, represent an investment in future growth; analysts had already been expecting these higher start-up costs, and Whole Foods' earnings actually beat consensus estimates by two cents.

Continue reading Whole Foods (WFMI): Whole grain gains

Whole Foods (WFMI): Whole grain gains originally appeared on BloggingStocks on Wed, 22 Aug 2007 10:55:00 EST. Please see our terms for use of feeds.

In spite of John Mackey's most self-destructive efforts at getting the merger he wanted so badly blocked,. it appears that it will go through. Although the FTC says it will appeal, Whole Foods Market (NASDAQ: WFMI) appears poised to acquire rival Wild Oats (NASDAQ: OATS). Shares of Whole Foods are up 6.3% on the news after-hours. Wild Oats, the buyout target, is seeing its stock soar almost 20%.

According to the Associated Press,U.S. District Judge Paul L. Friedman's filed a 93-page document (sealed because if contains trade secrets) denying the FTC's plea to block the deal. The FTC argued that the merger would lead to higher prices for consumers, and appeared to have compelling evidence based on internal documents from the company. The deal was referred to as "Operation Goldmine" at Whole Foods, and the company planned to shutter more than 25% of Wild Oats stores. Emails from Mackey to the company's directors referred to the acquisition as a way to "eliminate a threat" and avoid "price wars".

Mackey has got to be thrilled that the deal is going through. Aside from the obvious strategic benefits to his company, the failure of the deal would likely have been pinned on him. He would have become known as "Motor Mouth Mackey": The man who helped the FTC block an important acquisition because he couldn't shut his trap.

Judge won't block Whole Foods acquisition of Wild Oats originally appeared on BloggingStocks on Thu, 16 Aug 2007 17:36:00 EST. Please see our terms for use of feeds.

• In the trucking industry, FTN Midwest initiated shares of Cummins Inc (NYSE: CMI) and Navistar International Corp (NASDAQ: NAVZ) with Hold Ratings and Oshkosh Truck Corp (NYSE: OSK) and PACCAR Inc (NASDAQ: PCAR) with Buy ratings.
• ROO Group (NASDAQ: RGRP) was initiated with a Buy rating and a $3.75 target at Think Equity, which believes RGRP is positioned to capitalize as the Internet continues to grow as a broadcast medium for video.
• Soleil initiated shares of Accuray Inc. (NASDAQ: ARAY) with a Buy rating and $30 target. The company is Soleil's top pick in radiation oncology.
• Soleil also initiated shares of TomoTherapy Inc. (NASDAQ: TTPY) with a Buy rating and $25 target, as the firm believes all-in-one imaging and radiation oncology system in HiArt could become the new standard of care.

• Elan Corp (NYSE: ELN) was initiated with an Outperform rating and $40 target at Leerink Swann, which added shares to the firm's Focus List as it is positive on the Tysabri opportunity.
• Cree Inc (NASDAQ: CREE) was initiated with a Buy rating and $50 target at Amtech, as the firm believes the time for LED adoption has finally arrived and will accelerate in the future.
• Nollenberger initiated shares of ZipRealty (NASDAQ: ZIPR) and Move, Inc (NASDAQ: MOVE) with Neutral ratings.
• CIBC World Markets initiated shares of Whole Foods Market Inc. (NASDAQ: WFMI) with a Sector Underperformer rating and $38 target, expecting the company to be impacted by increasing competition.
• BMO Capital Markets initiated shares of Intel Corp. (NASDAQ: INTC) with an Outperform rating and $10 target.

Analyst initiations 6-1-07: WFMI, INTC, Oshkosh ... originally appeared on BloggingStocks on Fri, 01 Jun 2007 11:38:00 EST. Please see our terms for use of feeds.

• Dell Inc. (NASDAQ: DELL) was upgraded to Buy from Hold at AG Edwards to reflect the strong April quarter results.
• Boyd Gaming Corp. (NYSE: BYD) was upgraded to Outperform from Market Perform at Wachovia due to ongoing improvement in the locals business through revenue growth and cost reductions, expected benefits at Borgata from the summer season, and a new hotel tower at the property.
• OmniVision Technologies Inc. (NASDAQ: OVTI) was upgraded to Buy from Hold at American Technology and to Buy from Neutral at Merriman to reflect the company's improved revenue and gross margin outlook.

• Universal Compression Partners (NASDAQ: UCLP) was upgraded to Buy from Hold at AG Edwards, as the firm believes the potential for additional asset acquisitions creates likely upside to estimates.
• UBS upgraded shares of Norsk Hydro (NYSE: NHY) to Buy from Neutral and shares of Lear (LEA) to Neutral from Reduce.
• Cowen upgraded VistaCare Inc. (NASDAQ: VSTA) to Outperform from Neutral and added shares to the firm's Focus List. Cowen believes the company's decision to review strategic alternatives will unlock value.
• Matrix USA upgraded shares of Whole Foods Market Inc. (NASDAQ: WFMI) to Sell from Strong Sell based on valuation.
• CHLM upgraded shares of 3D Systems Corp. (NASDAQ: TDSC) to Accumulate from Neutral.
• Cantor upgraded shares of NMS Communications Corp. (NASDAQ: NMSS) to Buy from Hold on potential restructuring benefits.

Analysts upgrades 6-1-07: Dell, WFMI, Boyd Gaming originally appeared on BloggingStocks on Fri, 01 Jun 2007 11:11:00 EST. Please see our terms for use of feeds.

Whole Foods: Multiple signs indicate to stay on the side lines originally appeared on BloggingStocks on Thu, 10 May 2007 14:55:00 EST. Please see our terms for use of feeds.