07-16-2014, 08:16 PM
(This post was last modified: 07-16-2014, 08:17 PM by earthtodan.)
I bought a small position in WFM somewhere between 38 and 39, just on the logic that the falling share price will eventually bottom out against a growing business, and the price has fallen pretty far. Doesn't mean there's no more downside left, but if you want it, now may be the time.
Also, now is a relatively attractive entry point for UNFI. UNFI doesn't pay a dividend but it is the largest distributor of natural and organic foods (think warehouses and semi trucks, and exclusive contracts with suppliers). They are the main supplier to WFM and have accounts with some other retailers such as SWY. I think they have a 15% EPS CAGR over the last decade. The macro theme is, don't worry about picking a retailer, just buy the distributor.
Also, now is a relatively attractive entry point for UNFI. UNFI doesn't pay a dividend but it is the largest distributor of natural and organic foods (think warehouses and semi trucks, and exclusive contracts with suppliers). They are the main supplier to WFM and have accounts with some other retailers such as SWY. I think they have a 15% EPS CAGR over the last decade. The macro theme is, don't worry about picking a retailer, just buy the distributor.