jstratt

Why I'm Bullish on Whole Foods

Just a few thoughts on WFMI

I like going to my local WFMI location 2 times a week
I like the low debt level they have
I like the way their profit results have held up so far

The 23 PE is a little rich for investing in WFMI
I see fewer people when I go in since turn of year
I find better values at Trader Joes
They have been opening additional locations that compete with their current locations.

I would consider investing at levels at least 30% below where they are now. Until that time I will just invest in WFMI by buying lunch there 2 times a week.

The 15 Most Cash Rich Companies

I like CSCO and IBM best out of the list above. Both have growing businesses that compliment their excellent cash position.

Thanks for a great post!

Cable Recession-Proof? Think Again

Interesting perspective! I see a different story playing out so far however.

My guess is that cable will continue to hold onto customers and sales at a better rate than most industries. That is saying alot in this economy given that an average bill is over $100 at cable companies.

However your examples are examples of convergence. Those are people who are paying for high speed internet and paying for video. I would also add that they are likely paying much more per month than a cable plan which they are supposedly trying to save money by eliminating.

Cable companies are not going to win customer awards any time soon and we all get frustrated with them at times. However the huge investment by cable companies is continuing to bring significant advantages to customers. Getting back to the convergence of TV and Internet I cannot think of a more bullish scenario for cable companies. The WSJ had a big story touching on this today.

Bottom line: Expect cable to get impacted as housing issues and job loss rise. At the same time remember they are benefiting from growth areas as well. By the way cables Docsis 3.0 will allow customers to access the entertainment they want over the internet at high speeds.

Ironically the cable business isnt in doubt but the stock values are not necessarily going to follow the business anytime soon. It has taken huge investment and huge debt to bring the advantages of cable into homes.

Meanwhile customers are much more likely to complain about a lack of competition than to exclaim about the advantages. The Bell companies have problems offering video and the Satellite companies are unable to offer internet. The past decade has been won by cable over competitors each and every year. I think that will continue again this year and for the foreseeable future due to compelling advantages.