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Wednesday, February 18, 2009

Whole Foods Market Can Make U Whole Alot Of Mad Money For The Long Term ?

( WFMI ) 9.29 A Share as of 2/18/09 Target Price 19.75 By 2010.

Whole Foods Market, Inc. (Whole Foods Market) owns and operates a chain of natural and organic foods supermarket. As of September 30, 2008, the Company operated 275 stores organized into 11 geographic operating regions, 264 stores in 38 United States of America states and the District of Columbia; six stores in Canada, and five stores in the United Kingdom. This includes 55 stores (net of divested locations) acquired from Wild Oats Markets, Inc. (Wild Oats) on August 28, 2007, 52 stores in 20 United States of America states and three stores in Canada. Whole Foods Market’s product categories include, but are not limited to, produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, specialty (beer, wine and cheese), Whole Body (nutritional supplements, vitamins, body care and educational products, such as books), floral, pet products and household products.
Whole Foods Market Inc posted a quarterly profit that beat Wall Street estimates and forecast 2009 earnings ahead of analyst expectations.In the midst of a recession, Whole Foods -- which specializes in organic, natural and gourmet products -- has cut jobs, reduced its store opening plans, pared back its capital expenditure budget and suspended its cash dividend.

The company, nicknamed by some as "whole paycheck", also said it was working to provide more value to its customers, particular in its perishable food departments.

Mackey noted that the sale price of organic apples was about half the price of a year ago.

Stores now have displays comparing prices versus competitors and run contests where customers can win a basket full of merchandise if they correctly guess its price.
The company said it now expected full-year earnings to range between 71 cents and 76 cents per share. That compares to the 62 cents expected, on average, by Wall Street analysts.

Whole Foods said it would reduce capital spending during fiscal 2009 to a range of $350 million to $400 million from its earlier estimate of $400 million to $450 million. Wall Street hates this stock. Plenty of room for upgrades. Just reaffirmed '09 earnings. Ok performance. Consensus sentiment is against high-value food stores like WFMI. Recent capital infusion, however, mitigates forward going concerns. Negative sentiment overdone.Sometimes I wonder if the members bearish on Whole Foods have ever shopped there? I go there all the time and have never once been in a Whole Foods that wasn't packed. They have many loyal customers who shop there for many reasons beyond the organic produce. It is well worth the few extra dollars you will spend. Also, the growth rates haven't slowed down tremendously in the past year.Eating right today is Healthcare for the Health minded. Most people don't get this, they simply buy food based upon price. So they are able to criticise the company on how much everything costs because there is very little competition in this segment of the industry. Whole Foods enjoys a healthy pricing margin because it is a unique shopping experience with very knowledgeable staff. I think they wrap there stores in to much presentation and could save some money if they toned it down; however, that same presentation creates a colorful shopping environment that is easily recognized when other retailers try and copy it.All I know is that once you start shopping there, you don't want to stop...very high quality stuff that is almost impossible to find ALL-IN-ONEPLACE elsewhere! When your body feels better eating this stuff, it's hard to want to shop elsewhere...the cost, taste, and time savings seem worth the cost. I am a chef and when i need good quality organice food i shop at whole foods ! great customer service and well organized shopping Market ! This is a long term play , so buy on the dips and cash out when it reaches the target price , at 19.75 a share !
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