They are doing a lot of hiring now and this is a good sign. I'm buying!!!
UNFI, looks to be overvalued at this price check out awe-some_sto-cks, its a pretty reliable service. of course you have to do your own due diligence, but they generally point you in the right direction.
Is UNFI overvalued at current levels? Im not sure about you guys but awe*some*sto-cks has provided me with some pretty good trade ideas. I messed up executing some of them but thats on me.
Is UNFI undervalued? This sort of setup suggests potential upside... awe-some*sto-cks just allerted a new stock - it beats having to dig online yourself for new stock ideas.
Worst company I ever see in my life they very dirty any word you could discardable ne
Is UNFI overvalued at current levels? check out awe.some.stock_s, its a pretty reliable service. of course you have to do your own due diligence, but they generally point you in the right direction.
The market made the AMZN's buyout of Wholefoods the end of the world for retail !! NOT !! They are still a small percentage in the grocery business so I'll let the shorts enjoy the short term gains. Be careful that someone out there is coming to buyout UNFI.
Amazon MUST honor the WFM contract with UNFI, for WFM purchases only! HOWEVER Amazon itself does NOT have to buy from UNFI. Amazon already buys MANY brands directly from the manufacurer at a MUCH lower cost! The math: UNFI buys a HAIN product. Adds in a 25% margin(for most retailers). (less for WFM - lets use 8%) Then WFM adds about 33% retail margin. (varies by category) The mistake most make is the UNFI margin for WFM purchases from UNFI. Lets use 8% which is close. HOWEVER the COST added to the product IS MUCH HIGHER for the manufacurer!!! The manufacturer has that +8%, plus distributer buy-ins +10%, distributer flier programs +5%, cash terms +2%, brokerage costs +3%, WFM flier costs +2%, deductions +5%. TOTAL UNFI ADDED COST = 33%!!!!!!! (or worse) THAT is why Trader Joes and Kroger can price like goods MUCH cheaper. They have a better supply chain in regard to costs. THEREFORE Amazon can buy directly from the manufacturer at a 32% LOWER cost than UNFI, and the manufacturer can make the same profit at that MUCH lower sales price, as sales to UNFI at full price!!!!!
I believe Amazon gets this "special" 8% margin when WFM buys from UNFI. I DO NOT believe Amazon has to buy from UNFI, AND longer term THEY WILL NOT! (maybe short term?) I would LOVE to work for Amazon and negotiate with the manufacturers!!! It would be a win/win, the best kind of deal.
I would not own UNFI stock. I would also sell HAIN. The only hope for these two, is a buy-out like WFM. Not a reason to own, for me.
UNFI should approach AMZN. Maybe AMZN could use some warehouses. Not sure how UNFI will survive without WFM
This Jain analyst from Pivotal Research said that longs are in a pseudo comfort zone about the 2025 contract but I think most likely given that Amazon Fresh while logistics is good does not represent the same broad food selection as Wholefoods. They will need UNFI to fill the void. The stock is totally oversold.
Whole Foods is about 40% of UNFI sales. Initially they will continue buy from UNFI. After transition whom ever has the more efficient distribution system. Amazon is currently buying and distributing a large percent of the items carried in Whole Foods. Refrigerated, and Frozen is harder to distribute by far then grocery. Amazon pricing could leverage Whole foods sales and increase sales. Your guess is as good as mine.
UNFI is not like a Walmart or Safeway. They supply to WF. Unless AMZN is turning to other suppliers, I would think that the business will grow bigger with AMZN since the inventory turnover would be faster now.
AMZN is a logistics company i.e. distribution using the web. UNFI is a distributor not using the web. 40% of UNFI business literally ended on June 16th. It will take 6 months to work out the details than UNFI is BK..
What does the AMZN/WF deal has to do with UNFI ? UNFI is a food supplier and wouldn't orders be larger now than AMZN is going to grow their presence in the natural food business ? Where will AMZN be getting their supply ?
Options expiration and they have to take UNFI down on this news.