Whole Foods

Whole Foods (NASDAQ: WFMI) has been having a tough year.  Consumers have been hit by the economic downturn and high gas prices, and are scaling back their spending on top-shelf goods, such as those at Whole Foods.  In addition to the broader consumer ills, Whole Foods bought out its chief competitor (acquisitions rarely turn out well, in case you didn’t know), Wild Oats, and integrating their new purchase has been costly and full of unforeseen speedbumps.  Then, Whole Foods got hit by the E. coli bug recently, when they found out that one of their beef suppliers had switched up its processing plant without giving notice, which ended in Whole Foods’ beef being contaminated with E. coli, and a costly and embarrassing recall.

What does all of this bad news mean?  Potentially, it means a buying opportunity: Whole Foods stock is down fully 75% from its peak in early 2006.  The Motley Fool, a stock research service for retail investors that I happen to subscribe to, has noticed the stock’s precipitous fall as well, and is advising its subscribers to think about buying shares now.

Is Whole Foods a bargain?

1 Comment to Whole Foods

1. 

   they got a helluva damn cheese section
parksmarts on August 12th, 2008

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