Is UNFI really worth 8% less today than it was yesterday?
I for one don't think so. Do you think that the conversion of Wild Oats stores to Whole Foods (granting that some of the former might end up just being closed) is really going to reduce the overall sales of the combined entity? I doubt it. Will UNFI's sales and/or profits suffer as a result? I'm not sure, but I'm willing to suppose that they will be hurt, but only marginally. That risk can and will be managed, and as the overall market grows and strengthens, UNFI will continue to be a leader in the space and will prosper as a result. UNFI shares are on sale today... and who doesn't want to buy things when they're on sale?
NO! "(granting that some of the former might end up just being closed)"
If you're short on UNFI, I understand why you need to crow about things that may not happen. In fact the 3 Wild Oats locations here in MA that I know of, are prime real estate for Whole Foods. Some local officials are already afraid of the increased traffic ramifications of the conversions! UNFI will benefit from the increased number of stores in a closer proximity, meaning fuller trucks, better routes and lower costs. I see no reason to short this stock. In fact bidding it up a bit with an add to my position might not be what you want to hear, but inevitably, shorting UNFI is only going to lead to a scenario where you need to cover....
If there is anyone as unlucky as myself that has no choice but to shop at WO you know full well that you leave the store with about 60% to 70% of what you were prepared to purchase. WF will not only cure the rampant out of stocks that the lame buyers at WO always like to blame UNFI for, but they will go way beyond that. As a vendor I look forward to WF closing the redundant BAD stores and improving the ones they decide to continue with. I am so sick of seeing my product OS in any WO I go into nationally. The improved performance will put more more volume through UNFI, albeit less profitable. The difference will clearly fall in favor of UNFI. I have not owned this stock in 10 years but I bought today!!