Archive for October, 2015

Whole Foods Market Musings $WFM

October 28th, 2015

At the time of this post $WFM is $30.19 with a market cap of $10.8B. Its 52-week price range is $29.97 to $57.57.

We like this stock for day/swing trades (long) and expect its floor to be $29.50. For the short term we expect it to trade between its floor and $35.00.  We are long the stock with covered calls ($33) for downside protection.

Whole Foods is a growth stock with a trailing PE of 18.3.  Its current dividend yield is 1.7%. Short interest is 8% and the fiscal 2015 ER/conference call is scheduled for November 4th (after market close).

$WFM has been been beaten up due to concerns about competition from Kroger $KR and from recent public relations issues regarding over charging on certain items in a limited number of NY stores.