by Travis Johnson, Stock Gumshoe | August 2, 2008 9:04 pm
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Don’t understand why you are attracted to WFMI or SBUX.
http://stockcharts.com/def/servlet/SC.pnf?chart=wfmi,PLUADANRBO%5BPA%5D%5BD%5D%5BF1!3!1.0!!2!20]&pref=G
http://stockcharts.com/def/servlet/SC.pnf?chart=sbux,PLUADANRBO%5BPA%5D%5BD%5D%5BF1!3!1.0!!2!20]&pref=G
Both are basket cases. Fortunately, both gave us plenty of time to get out.
I have been getting e-mails from Adam Mesh, he talks about The Greatest Trading Book Ever Written. Do you know the name of this book , and is it worth my time to buy one and read it?
And the ugliness continues for WFMI, regardless of the fact that the Motley Fool continues to feature it in their ads — now down much more than 50% since the ads started flowing, the shares took a haircut of almost 20% this morning on disappointing results (higher costs for Wild Oats integration, much lower sales due to economic weakness, a terrible outlook for 10% sales growth versus the 25% previously seen). I still think it’s an intriguing story, but not yet a worthy stock … we’ll see. Investors almost never think it’s a good sign when a company suspends its dividend, but clearly suspending that dividend means Whole Foods thinks they’re still a growth company in a rocky patch, not a cash-generating value play. If so, there could be an opportunity to make a lot of money on this stock when the economy turns around … IF they can resume their prior growth rate. Big IF so far.
All that, and we add on a dollop of tainted meat — oof. Any valuation of Whole Foods over and above that of Safeway or Kroger rests on their ability to maintain a premium brand, it will be interesting to see how the damage control proceeds. Standards are higher for Whole Foods than for other grocers, both in the stock market and in the mind of consumers, so walking the line between “too expensive” and “not premium enough” should be interesting to watch, at least. From the sidelines.
Here’s an interesting article on their damage control from the Washington Post, FYI:
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/11/AR2008081102934.html?hpid%3Dsec-business&sub=AR
This stock has broken through a nine year .786 retracement. It is likely headed to the $7-$12 range. Look out below!
Has anyone posted about or have experience with: Survival of Big Florida Bank In Doubt by Martin D. Weiss, Ph.D. This appears in a Money and Markets newsletter email….