Author Topic: WFM - Whole Foods Market  (Read 35768 times)

ebdem

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Re: WFM - Whole Foods Market
« Reply #150 on: May 22, 2017, 05:33:44 AM »
Some more insights by GreenWood on WFM: https://www.youtube.com/watch?v=OObvMn-enjM (there are also more videos from valuespania on the channel).

Liberty

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johnny

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Re: WFM - Whole Foods Market
« Reply #152 on: June 16, 2017, 06:37:26 AM »
Should have known from the absolute temper-tantrum Mackey was throwing last week that things were progressing well.

pau_

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Re: WFM - Whole Foods Market
« Reply #153 on: June 16, 2017, 10:18:20 AM »
Strange the market price shot above the offer price, isn't it? Are people expecting a bidding war? Sudden negative interest rates? Is it dumb algo &/ retail trading?

HJ

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Re: WFM - Whole Foods Market
« Reply #154 on: June 16, 2017, 10:40:19 AM »
Somebody was espousing a theory that Walmart or Kroger may counter bid to forestall Amazon from entering the space so dramatically and quickly.  The deal seemed like a pure financial one with activist pushing it behind the scene, who probably would be happy taking higher dollar bids regardless of where it's coming from.

pau_

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Re: WFM - Whole Foods Market
« Reply #155 on: June 16, 2017, 11:17:07 AM »
Thanks HJ, makes sense.

johnny

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Re: WFM - Whole Foods Market
« Reply #156 on: June 16, 2017, 02:31:20 PM »
Somebody was espousing a theory that Walmart or Kroger may counter bid to forestall Amazon from entering the space so dramatically and quickly.  The deal seemed like a pure financial one with activist pushing it behind the scene, who probably would be happy taking higher dollar bids regardless of where it's coming from.

I don't really understand the rationale. They're all going to share the theoretical benefits of blocking Amazon, and I don't think any single player has enough share to justify absorbing the entire cost for that. Also, Amazon already has a delivery relationship Sprouts, which isn't quite Whole-Foods-sized but is close enough that it's hard to see what would stop Amazon from just buying Sprouts, doubling their storecount, and being in essentially the exact same position (except with Kroger now shouldering twice the debt-load).

But who knows!

Liberty

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Steven B

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Re: WFM - Whole Foods Market
« Reply #158 on: June 19, 2017, 07:41:15 PM »
To be clear, I'm not judging anyone. I just honestly want to know the position of the Whole Food Bulls. If they were honest with themselves, did they nail the investment or do they get lucky ala' wuphf.com from The Office?

johnny

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Re: WFM - Whole Foods Market
« Reply #159 on: June 20, 2017, 03:04:54 PM »
Whole Foods markets have always had an "above it all" feel to them which makes the experience of shopping at them better than competitors. This was a difficult-to-value advantage, and they obviously were having some trouble turning that into exploding earnings, but it's clearly the value Amazon saw in the company, so I don't know why any bull wouldn't think Amazon validates their position (super-alien genius Bezos agrees that Whole Foods is the best?).

Even though I was just suggesting Amazon -could- buy Sprouts if blocked here, there is a reason they didn't--even though it's less than a third of the price, cheaper per-store, etc.