Quote:
Originally Posted by TheMVP
WFM
- Enterprise multiple of 8
- Stock has been beaten down
- Still has a strong brand and following
- Smaller footprint stores will be a huge success
On WFM:
-They built out pretty aggressively on the smaller footprint stores without thinking about cannibalization that much. Finally came out and said there'll be part cannibalization.
-Krogers has just been smoking them and that's the reason why stock has been beaten down. The industry dynamic is somewhat shifting, as everyone is selling the good ol' 'organic' stuff now. You know what people don't buy at Whole Foods? The goods that actually make stores money (sodas, snacks, candies, cigs).
-Management team: you also missed the crappy management part, although if you actually have any insight / conviction into a change happening here then this could be a stellar buy. They've just crapped the bed so many times on strategy that it's hard to give them credit for the growth strategies going forward.