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William Braun  

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  • Whole Foods Is In A Whole Lot Of Trouble [View article]
    Where do you expect Whole Foods Market to be in 5 years? How about Trader Joes, and Sprouts?
    Aug 5, 2014. 10:57 AM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    Thank you for your opinion. Increased competition will definitely put pressure on them to continue performing to the best of their ability (as it will on the other players you've mentioned). The natural and organic food industry, in which Whole Foods is the leader, is growing much faster than the broader supermarket industry. Whole Foods is taking the necessary steps to fuel future growth, investing in new locations, new product lines, new company owned, high margin lines - to name only a few. During economic downturns, most businesses suffer to some degree. Whole Foods has actually suffered less in recent downturns than the average, due to the nature of their customer base. Whole Foods isn't worried about prices coming down, rather, they're trying to expand value offerings in order to broaden their base. Their industry is taking over the food space in America, and they are capitalizing on their 30 years of fine tuning.
    May 27, 2014. 12:28 PM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    Fortunately, no one is forcing you to buy WFM stock. I'm sorry you are so angry. I haven't intended to offend you. This article and my comments express my opinions only. My belief stands that WFM will produce market beating returns over the next few years.
    May 21, 2014. 10:04 AM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    Is your goal to prove me wrong, then? An investor who bought when my article was published will do quite well over the course of the next few years, and will likely be in the black by next year. This sell-off is an irrational one. If WFM stock falls to $25, will I suggest it is a better value than before? Absolutely. I never try to speculate the bottom of a substantial fall, or the top of a substantial rise.
    May 20, 2014. 10:37 AM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    I haven't learned anything new from this. I've seen this with almost every stock I've ever bought, likely because I buy during times of hysteria. WFM is now grossly oversold. They are still a great company that will outperform over the long term. I'll be a buyer at these prices. I bought GMCR in 2012 at $30, when their CEO had a margin call scare. A couple of weeks later, I was down almost 50%. Needless to say, I've done great with that investment. I have no interest in speculating insider trading decisions. Feel free to check back in the months and year ahead.
    May 7, 2014. 10:56 AM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    I forgot to include that Whole Foods does have it's own distribution centers as well.
    Apr 21, 2014. 01:26 PM | 1 Like Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    Thank you for your comment. Depending on Vandec's tax rate, and trading fees, I'm not sure his decision was advantageous. His dividend as a percentage of an $8.50 purchase price would not be 1%. The current dividend is 1% of the current price. In a comment above, I agreed there will be more competition in the organic and natural foods market going forward. As for Trader Joes, I made sure to include that my belief was based purely on preference. The quantity illusions comment was a little reckless, but I'll be glad to further explain. Many of Trader Joes products are sold at better prices than their competitors, however, you'll often find that when you check the unit price (i.e. $/lb, $/each, $/pack), they are more expensive after all. This is a strategy all supermarkets participate in to a degree. In my experience, Trader Joes depends the most on that strategy. If competitors open locations in close proximity to Whole Foods Market stores, I do expect there to be added pressure. However, we would be taking little consideration of WFM's past performance, and management effectiveness, among other variables, to think that new entrants such as Wegman's would so easily steal customers in an area where Whole Foods is already established. I don't know if their sales will decline if that happens. I can only make estimations based on the available information, as detailed in my article. My expectation, considering all of the variables, is that Whole Foods will increase earnings over time, but will be held down this year due to a rapid increase in new store openings. As the organic and natural foods industry grows, I expect prices to come down across the board. Prior to the Wild Oats deal, Walmart already had an inventory that included over 1,500 organic food products. Wild Oats will only add 100.
    Apr 21, 2014. 12:58 PM | 1 Like Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    I can appreciate that, and I welcome your input. I learn the most when I'm proven wrong. This article represents my opinions only.
    Apr 19, 2014. 10:26 AM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    In short, yes. We don't know the reasons for the insiders' sales, therefore they aren't a reliable indicator. My opinions are based on an analysis of the numbers and past performance, as well as the competition's.
    Apr 18, 2014. 08:11 PM | 1 Like Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    At your original purchase price, you'd be enjoying a pretty favorable dividend if you had held, not to mention future growth potential. Still, it looks like you did quite well, and I congratulate you. WFM isn't necessarily for the short term investor, nor the medium term (despite my brief mention of him). I don't believe Trader Joe's is a better alternative to Whole Foods Market, but of course, this is purely preference. Also, their prices are not always as great as they seem. They employ quantity illusions as part of their marketing strategy. Costco is a great business, that doesn't eliminate the need for regular grocery stores. At the right price, I'd be a buyer of Costco. Investors shouldn't consider new competition as an early indication of a company's demise. In the early days of any industry, (e.g. automobiles, computers), new competition is seen as a sign that the industry isn't merely a fad, but rather a permanent improvement in the human condition. Whole Foods Market's 365 branded items have higher gross margins than their average. They've said they are committed to increasing value offerings in all of their stores. I'll rewrite that for them... We remain committed to growing our selection of 365 brand items, which gives us greater control over prices.
    Apr 17, 2014. 10:44 AM | 1 Like Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    Part of my article's purpose was to debunk the cannibalization issue. An investor willing to wait, say, a year or more, should not see it as an issue, as comp sales have historically rebounded in that time.
    Apr 17, 2014. 10:19 AM | 1 Like Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    The leases they sign today can be for locations planned two or three years into the future. They're continuing to increase their new store opens year after year, in a well managed way. It's likely these markets will be served eventually, as they're internal data strongly supports 1,400 stores. As the organic and natural foods industry continues to outpace the broader supermarket industry, wholesale prices will come down, which will have a significant impact on their ability to move into "fringe" markets.
    Apr 17, 2014. 10:16 AM | 1 Like Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    Selling at those prices, it looks like they've done well. Regardless, insider selling, even in groups, has never been a reliable indicator for stock performance. I feel strongly their holdings will be larger in the future than they are today.
    Apr 17, 2014. 10:11 AM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    There is no doubt, the market for natural and organic foods is becoming more competitive.
    Apr 17, 2014. 10:10 AM | Likes Like |Link to Comment
  • Whole Foods Market Pessimists Are Heroes To Smart Investors [View article]
    Well, they're heroes nonetheless!
    Apr 17, 2014. 10:07 AM | Likes Like |Link to Comment
COMMENTS STATS
15 Comments
6 Likes