I'm thinking of buying Whole Foods - what do you think?
Answers
251 points
chidog47 answered 3 months ago …
I've been looking at the stock myself.
Ethan R answered my question a couple weeks back.
Here's the link and here's his best answer as well.
http://www.tickerhound.com/questions/detail/20080718668d08
Chidog, one stock I like in this sector is Whole Foods Market, Inc. (WFMI). An $80 stock in 2006, it currently trades at only $22.67! It's been cut in half this year alone. PE ratio is 19, dividend yield at current level is 3.74% The recent low was 20.18, so you would either want to make sure that low holds before you buy, or put your stop loss slightly below that price if you buy it now.
WFMI is the world's largest retailer in organic and natural supermarket foods, and they are still expanding. Technically, the stock is looking much better on the daily chart, with RSI, stochastics, and MACD all having turned up. The stock just moved above the 20 day moving average. Negatives are the 50 day M.A. is still declining and below the 200 day M.A.
You are correct that people are more concerned about what they eat all the time, and especially the aging baby boomers. However, just keep in mind that the slower economic climate has hurt this stock, because organic foods cost more than non-organic foods. Also, many regular supermarkets are now stocking organic foods. However, I still think WMFI will be a winner over the long term and the price and dividend yield are certainly attractive. Good luck, I think you are onto something!
123 points
CakeFinancial answered 3 months ago …
after the lousy earnings announcement there was a good bit of buzz about WFMI on Cake Financial. the Cake Take, which is based on trading activity of our members, has it moving up from a "C" to a "B+" now since their announcements last week.
personally, i'm a fan of "buy what you know," and what i know is that whole foods has a good product, a responsive management team, and loyal customers, all good things.
if you do decide to hop into WFMI, the staff here at Cake go there to eat several times a week, so we'll be doing our part to support your decision. ;-)
245 points
Dusty answered 3 months ago …
A commentary I read recently discussing Whole Foods was about the rising costs of foods and especially the kinds of things Whole Foods sells; a falling income for consumers or at least a lot of caution in discretionary spending and ominous near-future possibilities for the general economy. Whole Foods is actually in more trouble as a business than it wants to admit with future prospects dicey. The whole grocery business is hurting with consumers increasingly searching for lower cost products. At the present time I would avoid buying within the grocery industry and Whole Foods would be at the top of my 'extreme caution' or 'avoid' list.
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