already up almost 15%! Analysts on wall street now changing their tunes...now wfm just needs to get it's customer service mojo back and it's all systems go to $40 a share by 1/1/17.
See ya there...$40 a share...
14 replies (most recent on top)
Right on schedule until that is, the FDA busted WFM for severe violations back in Feb/March, which have now been made public in June. According to the FDA, WFM failed to address the violations and take appropriate action. Now the stock is heading down......fast! Maybe Mackey, Meyers, Minardi, Turnass, etc should sell some of their personal possessions to buy back more stock because I doubt they'll get any more loans for it and no intelligent investor will be buying.
to Post-1luc: "smart management is an oxymoron when it comes to WFM" LOL! How true.
Yes, and four years ago all the professional analysts and business writers were predicting that the company was going to take over the industry. See how THAT works?
There is no correlation between Barron's predictions and what actually happens with the stock. That was just really shallow journalism on their part. I'm sure when they revisit the success of that recommendation they will find that, as in many cases, a positive magazine article occurs right about the time that all the suckers are buying into the hype. There is absolutely no evidence of any turnaround other than a renewed commitment to pumping the stock so the founders can sell and go fishing.
Now Barrons is on the bus, see how that works?
Love the stock increase, I can unload all these useless options I've had forever and get on with my life. They still haven't streamlined team structures and what they have done has been with little support. For example, you can combine buying responsibilities on any team of any size, but if IRMA still sucks then the job still takes just as long as it did with two people. You can't expect people to get more done when the tools don't exist. I'm seeing food sitting out way longer than it ever did before getting put away, more burn out and turnover, younger and younger new hires who last a few months. And our store looks hideous compared to 3 years ago when it had life and a full time signmaker/marketer.
mythical mojo comes back with all these staff cuts when whole foods comes into the 21st century with regard to purchasing etc at the store level. Teams with 30k a week in sales need three buyers??? lol...surely you jest. Too many people had it too easy for too long at Whole Foods Market.
A high stock price does nothing to impress customers or increase profitability of the business itself...
Exactly how is this mythical "customer service mojo" magically supposed to come back when staff is being cut, hours are being cut, long time, loyal (but expensive) team members are being shown the door, and team member morale is in the toilet? A small uptick (or even a large one for that matter) in the stock price isn't going to change any of that. The business itself is falling apart at the store level. Customers will vote with their feet, and in fact, many of them apparently already have as evidenced by the declining same store sales.
"Smart management", now there's an oxymoron, at least when applied to Whole Foods Market. I agree with @HG0hcmP-pwh, that WFM missed their opportunity to sell the company a few years ago. Now no one in their right mind would want to buy it. Now they are stuck with hundreds of stores with expensive leases and overhead that aren't turning a profit. The 365 stores, even assuming they do well (and thats assuming A LOT---I wouldn't bet on it) will not be sufficient to make up for the huge albatross that is the WF stores. As far as @HG0hcmP-hfn remark that borrowing 1 billion is a "genius move" because interest rates are low, the interest rates are irrelevant if you can't pay back the debt---debt is debt. So basically they've taken a very expensive gamble hoping to at least keep the stock prices afloat as the rest of the business sinks ......and as they continue to lay off or fire employees.....and as the level of customer service declines.......
Get out while you can---that's the advice I'd give to employees and stockholders.
really? short covering? what's the number of short shares outstanding? how many days to cover?
do you know what you can borrow $$ for in today's interest rate environment? and then earn 15% on it in 4 months?? Genius move!!
They aren't changing their tune...one firm raised its rating, probably hoping they'll get a piece of the next $1 billion bond issue which should be any day now as the prospects continue to sink.
Anyone who would call this management team "smart" must not be aware that they neglected to sell the company when it was selling for $67 a share. All of that stock (not quite a billion worth, more like $650 million) was bought with BORROWED money. The remaining $350 million? It would be interesting to know exactly how that's being spent. This company can't compete, the founders want out and they refuse to break out the performance of the new 365 chain. Wonder why.
It's called "short-covering." Mix with hype for a really good cocktail.