Was just taking a look at the balance sheet for UNFI and wondered how much upsid could be left from current levels? I mean, they already have a what, $1.7 Billion cap!
Just a passing thought!
The fundamentals for this company are outstanding. Also, as the baby boomers keep getting older, they begin to realize that if they want to live longer to see children/grandkids, they may want to eat healthier. The wesite article from Google was nice, I'll keep google in mind. Anyone think Bidu is a good buy at 80.00, not many analysts I see.
The following was announce year end 2004:
"...word that Dayville, Conn.-based UNFI had sealed a three-year renewal with its largest customer, Whole Foods Market Inc."
Google is great (the service...who knows about the stock!) simply searched "United Natural Whole Foods contract" and voila!
i believe they renewed in early January 05 for 2-3 years. they have been a customer for 10 years plus and while wfmi does self distribute that is mostly perishables. i would assume they do not need the logistical headaches of the other stuff. unfi will survive the loss of wfmi if it comes to pass. while i do not know the terms of their contract i would assume wfmi is squeezing unfi pretty hard and is not the most profitable contract that unfi has.
I am not aware of any reason Whole Foods would not renew their contract with UNFI, but you have to consider that as Whole Foods keeps growing, with the possibility of them expanding into Europe, at some point they may need to rework their supply chain.
If anyone has info on how long the current contract with Whole Foods is good for, please pass it on.
I am a retailer who has owned UNFI for 4 years now and I plan on holding for awhile longer.
<<You mentioned a possibility of WFMI not renewing the contract not year. Any particular reason? Problems you are aware off?>>
That rumor goes around every time the contract comes up for renewal. Whole Foods can no more afford to go it alone than UNFI can afford to lose them. I wouldn't lose any sleep over it.
Maybe I'm missing something, but what does the market cap have to do with potential growth? Besides, the cap could double, if the stock splits 2:1. In reality, caps are always changing. Sorry--- just had to stick my head in here. Just picked up a few shares of UNFI yesterday, and wanted to see what the buzz was. Traded OATS for UNFI. Figured it was a good way to play Wild Oats AND Whole Foods (which, right now, I can't afford much of that, although it is still cheap).