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Tim Travis
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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
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T&T Capital Management Blog
  • Whole Foods Sees Stores Tripling With Embrace Of Produce-Bloomberg 0 comments
    Aug 21, 2012 2:56 PM | about stocks: WFM, WMT, TGT, SVU

    Whole Foods Market Inc. (NASDAQ:WFM) continues to experience robust growth as the shift away from regular grocery stores continues. Whole Foods is obviously on the high end while the Super Stores such as Target (NYSE:TGT) and Wal Mart (NYSE:WMT) are continuously expanding their offerings totake business from the likes of Supervalu (NYSE:SVU) and Kroger (NYSE:KR). Obviously this is a huge market but the legacy supermarkets particularly Supervalu, are burdened with higher debt ratios than their competitors, which makes it difficult to compete on price as interest costs are quite significant. Whole Foods certainly has the ability to increase its store footprint but it must be careful not to jeopardize its financial condition through expanding too quickly. Management has been quite solid and I'd expect them to continue to make the right decisions but at the current valuation I don't see it as a compelling buy.


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: WFM, WMT, TGT, SVU
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