everyone seems to hate whole foods right now as an investment. if its u.k. expansion isn't a flop, and if it can hold onto its margin, then its low valuation relative to its past valuations seems unwarranted.
compared to other grocers, it's got a high valuation, but that's in line with its higher margin. in the past, the valuation was justified by growth expectations. that growth has probably slowed significantly.
and the wild oats acquisition. what's going to happen? probably it'll go through. will this help whole foods? probably not as much as people are hoping, if at all. but maybe extra scale will give it better negotiating power in the market for organics.
there are a ton of question marks for WFMI, but i think it's got enough of a technical base and a solid enough business that we could see a six-month or so rebound.
$41.16 (06/05/07)
