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Whole Foods Market, Inc. Message Board

  • kmsmith08 kmsmith08 Nov 9, 2012 7:42 PM Flag

    $75 maximum value based on 25 P/E on $3.00 projected 2013 earnings

    Wow. Mad Money's Jim Cramer, another eternal optimist, says this is not a good buy above $75. I can't believe he's more pessimistic than even I, a confirmed WFM hater, am. Maybe should consider grabbing those put options a little quicker than my high target of $95???

    Sentiment: Sell

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    • Cramer wants a correction, maybe he actually follows WFM and knows something about it. It has been high too long.

    • is not the same as maximum. If the maximum is 75, what is the current price called.

      That said, you had a short side nice trade....might be on a roll, grab some more puts.

      you quote Cramer.... good for you, not enough people value his advice :)

    • The market treats WFM differently. The extreme case is AMZN where PE is meanless to the buyer.

      • 1 Reply to tshih_90630
      • You are correct. One key difference, however. AMZN has effectively no competition. WFM is going to run into Chipotle (CMG) syndrome. I think the transition is under way presently. Reasons are numerous, but key are:
        1. The Fresh Market, Trader Joe's, and the inevitable catching up (or getting out of the way) by Safeway, Kroger, Harris Teeter, Supervalue, et. al.
        2. People are going to eventually, albeit slowly, catch on that organic and "natural" is bull manure, which will resulting in diminishing same store sales (unless they modify their model).
        3. The economy is not going to gain strength fast enough for WFM to maintain a growth/expansion rate that will justify an extreme P/E (again, relative to the fast closing competition).

        Sentiment: Sell

29.41-0.43(-1.44%)Nov 27 1:00 PMEST