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Whole Foods Market, Inc. Message Board

  • newpikachu newpikachu Feb 23, 2013 1:48 AM Flag

    Weiss upgrades investment rating of WFM to A+

    WFM upgraded from A to A+.

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    • Weiss is great at rating the FINANCIAL strength of banks, insurance companies and stocks. Unfortunately, that is but one relatively small component of a stock's fundamental valuation. If you invested solely in Weiss (or Schwab, et. al.) A rated stocks, you would leave about 200-400 basis points per year on the table over time. They are seriously outperformed by B-D rated stocks. Look it up....

      Sentiment: Sell

      • 1 Reply to kmsmith08
      • You make a good point.

        It really depends on one's objective in buying a stock. The out performance of B-D stocks is relative because each of us picks a limited number of stocks to trade or own. Not everyone will be successful in picking the ones that outperform. Some will pick the ones that go bankrupt.

        WFM has hardly underperformed over the last five years.

        Compare it to a D rated stock like AMD. AMD has seriously unperformed the last five years.

        Maybe AMD will make a come back this year, as many predict, and far outperform WFM.

        The lower rated stocks are far riskier bets, and more risk means more reward--that is why some D stocks seriously outperform A rated.

        So you just have to hope you pick the right ones, which you may not.

        I'm not sure if ensuring outperformance is the objective of these ratings. They are more geared toward concerns about investment safety and capital preservation.

    • So why is it down ?

      • 1 Reply to eak2863
      • Why not?

        Whole market is down and severely destabilized. Leaders have been falling. Looming fears of Friday. At the least sign of uncertainty, we have panic selling caused by fear about the dubious methods being used to prop up this market. Everyone knows it can't last. For all anyone knows we could be at the beginning of a major correction.

        However, assuming another rally gets under way and can actually be sustained, I suspect WFM will be one the main beneficiaries.

    • Highly regarded company by The Motley Fool.

30.65+1.72(+5.95%)Feb 12 4:00 PMEST