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“The New American Super Brand”

By Travis Johnson, Stock Gumshoe, March 13, 2007

The Gardners are at it again, peddling their Motley Fool Stock Advisor Newsletter with the promise of the bonus free report on the “New American Super Brand.”

Now I actually like the Motley Fool, and have paid to subscribe to some of their products in the past. But they’ve definitely perfected the insanely long advertising email, chock full of company teasers.

This latest email that was forwarded by a reader? 17 PAGES. My God, does this really work?

I guess maybe it does, because they keep doing it. So what’s this “New American Super Brand” they’re issuing a report on?

They compare it to Starbucks, Wal Mart, and Nike. Good so far.

And they provide a bunch of hints:

  • “A couple of years ago, you couldn’ve gotten into this company for about a third of what it costs today” (that’s stretching it with current prices, but the email is probably a bit out of date)
  • This brand made the “revolutionary” decision not to follow the industry practice of renting shelf space. (That tells you we almost definitely have a discount/department store or supermarket here)
  • Sales jumped 23% in 2004, and 22% in 2005
  • 3X more profitable than their major competitors
  • $267 million in cash, only $15 million in debt (competitors are much more indebted).
  • “international sites so far [only] in Canada and Great Britain”
  • goal of $12 billion in sales in 2010
  • won Fast Company’s “Customers First” award.

OK, that’s more than enough hints — ready?

The New American Super Brand is Whole Foods Market Inc. (WFM)

I’m sure the Stock Advisor service is great for some people, and that reading their analysis of the company might give you a better perspective, or more conviction if you’re wanting to buy. But if you just want to know what this company is, there you have it — thanks to your friendly Stock Gumshoe. There’s no shortage of free information available about this massive company, so don’t feel like you have to subscribe to a service to understand them.

I’ve been interested in this company for quite some time, too, though I’ve never thought it was cheap enough to buy. Now, shares are near their 52 week low and about 40% off the highs of late last fall, thanks to some disappointments and a big acquisition and, perhaps, fears of growth stocks in general — so perhaps this is your chance. It’s still not cheap, in my opinion, but if it’s the New American Super Brand it may never be cheap. Caveat emptor.

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Anonymous
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Anonymous
March 27, 2007 5:08 pm

Thanks, am tired of the solicitation even though Motley Fool is pretty good

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Anonymous
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Anonymous
March 27, 2007 8:01 pm

Thanks for the information. It is easier to read than the huge emails I get from Motley Fool.qdshxir

Anonymous
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Anonymous
March 28, 2007 12:39 am

Thanks, I read that Fool email – L O N G -. Now I can watch this stock and see if a fool and his money will soon be parted, or not…

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Anonymous
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Anonymous
March 29, 2007 6:11 am

Thanks, the curiosity and suspense were killing me. I like these guys, the Gardners, and listen to the Motley Fool’s input on NPR’s Sound Money program regularly. I also find something compelling, or at least very engaging, in the lengthy missives that come from them; their numbers certainly are impressive.

Anonymous
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Anonymous
April 18, 2007 9:46 pm

One eventually realizes that the real way to increase wealth is to peddle a newsletter for $199/year that is filled with promises just a motivational speakers realized they could best motivate their pocketbooks
by pumping up others.

Anonymous
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Anonymous
May 25, 2007 4:40 pm

Thanks. Got any others from Motley Fool?

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One Guy
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One Guy
May 25, 2007 8:21 pm

Yep, you can find the other Fool writeups t:

http://www.stockgumshoe.com/search/label/motley%20fool

Anonymous
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Anonymous
May 30, 2007 2:37 am

I like “the brothers” too and have enjoyed their appearances on CBNC in the past but I am somewhat suspicious of them now. Before the last big stock downturn, they were all over the media — kinda like they are now. When the stocks went south, so did they. Or so it seemed. Not too long ago, one of them picked Dell to be very hot. It’s up slightly since the pick but nowhere near “warm” let alone “very hot.” Can’t wait to see how Whole Foods does.

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Anonymous
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Anonymous
May 30, 2007 3:24 pm

“Can’t wait to see how Whole Foods does.”

It’s down from March so so far a crappy investment. Long term I expect this stock to do ok. People are so gullible though. If this stock is going to shoot to the moon over then next 10 or so years, then why don’t these brothers just put a ton of money into long positions instead of sending out spam and trying to dupe people into paying 200 bucks just to learn their stock pick?? Because that’s how these jokers make their money, not by going long WFMI.

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One Guy
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One Guy
May 30, 2007 6:56 pm

Boy, I can always tell when the Fool has initiated a big new email campaign — the Stock Gumshoe servers are flooded with searches for the New American Super Brand. This one has been around since I launched the Gumshoe a few months ago, and they appear to have not modified their “sell” for this stock even as it has fallen, which I guess is typical of the long-term approach the Fools advocate. Will certainly be interesting to see if the performance turns around.

SG

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rockstarfixx
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rockstarfixx
May 31, 2007 2:25 pm

That’s right, just got the spam yesterday, must have deleted or overlooked the previous long winded BS emails from them. It’s great how they make money even when WFMI drops. I was a big fan when the Fool was only on AOL’s service back in 94-96 and they didn’t charge for their “advice” or portfolio picks. Now they are like any other stock/investment scammer service out there. If they dupe just 3,000 individuals to pay the 200, that’s 600k in their pocket and probably enough to run their entire operation for a month.

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hp
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hp
October 31, 2007 5:40 pm

MF tends to promote stocks from their invest letters (generally not new holdings at that), getting a little extra value out of their promos. These tend to be a lot more positive, juicy, than the original write-ups in the letters.

Are they touting stocks that seem to be lagging or not fulfilling their (MF)potential?

One Guy
Guest
One Guy
October 31, 2007 6:11 pm

My guess is no, they’re using stocks in their ads that they’re convinced are long term picks and, perhaps more importantly, they’re using stocks that they can use to weave compelling ads. They’re in the business of getting your attention, I assume that’s much more important to them than using these teasers to try to boost the share price.

Most newsletter publishers, including the Fool, use the same ads, with some edits, for as long as they work — and they’re often tied to market events, so if oil goes up we see the oil sands teasers, if people are afraid we see the “what to do in a crash” teasers. The longest-lived teaser I’ve seen is the Fools “next Berkshire Hathaway” ad that has teased Markel for a few years for the Inside Value newsletter, but plenty of them have been in fairly steady use for at least six months.

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Anonymous
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Anonymous
November 13, 2007 7:27 pm

Funny thing. I got this in my inbox today, but it seems that they posted about this in March, so is it a better pick now than it was then? If you would have bout it in March, you would have lost about $7 a share right through Spetember. Only now is it over $45 again.

Anonymous
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Anonymous
November 14, 2007 4:04 pm

Thanks for your work. I get suspicious of super long solicitations. I found your site while searching the Super American Brand. Looking at your performance charts I see all the names that clog my snail mail and e-inboxes. Thanks for the hard data without all the hype.

CW
Guest
CW
March 13, 2008 9:50 am

They’re still sending this out – I got it in March 2008 and the email sounds largely the same as it did in March 2007 – not the kind of up to date market advice you’d want to pay $200 for….

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Priscilla Underwood
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Priscilla Underwood
March 15, 2008 1:29 pm

You, good sir, are a treasure. I subscribed to MF for information and got only hype. What you have on your site is very helpful. Thank you.

SUSAN B
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SUSAN B
March 15, 2008 2:51 pm

Yes – I just realized the initial responses about this were in ’07, for pete’s sake! What’s that all about anyway! I just got it for the first time today – so I guess the jackpot question is what’s it’s record been since there’s a year of history to go on now?!

SUSAN B
Guest
SUSAN B
March 15, 2008 3:03 pm

Holey moley! I just found a MF forum question about “The New American Super Brand” dated AUGUST ’06!!! Needless to say the question resulted in ZERO responses. Seems like a blatant scam to me!

Charlie
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Charlie
March 15, 2008 8:10 pm

The stock graphic looked like LUK……a previous MF pick.

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