Someone explain this to me--any securities attorneys out there? I'm disgusted!!!

First, when the news comes down about this crazy CEO, there was some talking head on TV saying it will all blow over--he'll get canned from Whole Foods, but then he will get some other job later when the dust settles. There were other news items along these lines this week, culminating in Motley Fool's irritating discourse about whether what he did is really so bad and how the company probably can't run without him.

Wasn't there some kid (teenager or early twenties) a couple of years ago who was arrested and successfully tried for chatting up stocks and trying to manipulate their prices? Shouldn't the CEO of a publicly traded company be held to a higher standard? I'm appalled that anyone thinks we should do anything with Mackey other than prosecute him. (Aside: I'm still mad over Martha Stewart and all the people who think she did no wrong. I think she richly deserved what she got. I am an employee whose company, as a condition of working there, requires me to sign agreements stating that I will not trade on inside knowledge about our clients, and I do not think for a minute that I could, or should, get away with such trades.)

Disclosure--Fortunately, I do not own this piece of **** stock. However, it might be a good buy at some point in time, that is, the point when everyone has the knives out for Mackey.

Tell me, can this really 'blow over?'

Mary

Originally posted in thread: 10862

For sometime now, I had my eye on the stock but could not make myself to pull the trigger. The competition for organic products is getting hotter and better. Other grocers are successfully remodelling their stores to better target the same consumer segement. Safeway is one that is doing better in this area. The wild oats acquisition may fail. Especially with Mackey being in the center of the storm.

The niche customer base for whole foods seesm to be upper middle class/organic aware segement. This segement resides in parts of town where real estate is prime and getting space for expansion may not be possible. Also, I believe they will run out of customer base sooner than later with competition chipping away. If WFMI's gross margin gets squeezed or their growth slows futher, this stock may be toast.

Just my thoughts. Please do your own DD.
Onemore!

Originally posted in thread: 10862

My belief is that brand and product variety are two strong holds of this company. I wont be surprised if the whole foods brand gets tainted with this scandal. The second strong hold can be overcome easily by a well established grocer.

Originally posted in thread: 10862

I am a Whole Foods shareholder and am looking for a place here under 40 to add to my position. Mackey did not move the market with any of his posts. Nor does almost any annonymous posts about stocks on discussion boards. He never released information that was not openly available to the puplic, and when he expressed opinion it was implicite that it was opinion. Most CEOs do not have the passion about their company to post on discussion boards with us peons.

The FTC has NO CASE!!! Why do you think this came up? They are grasping at straws and hoping that they will not be the only one that looks silly. Basically haters of this company can not have it both ways. Either competition is heating up and their competative position is in jeopardy or it has a near monoploly that with the purchase of Wild Oats will put them so far out of reach of competion that they will be able to exploit consumers.

Fundamentaly this company has not stopped growing. They have possibly reached 50% of their domestic saturation in number of stores. With Wild Oats (depending on how many stores they sell) they will be near 75% (more stores less square footage), this will let them focus on international growth like England where often times the quality and history of the food that people consume actually is a health threat occasionaly.

Simply the light is at the end of the tunnel. For you shorts who knows what near term will bring, but by the end of 07 I would be long WFMI as new store openings will start adding to the top and bottom line and this FTC mess will be behind it.

Originally posted in thread: 10862

it's not up to us to decide if the FTC has a valid case. I don't think so either, but courts have been known to do funny things. and litigation isn't exactly free, either - fighting a negative court decision will take time and money, and will distract management.

hopefully a court will find that Mackey's ill-considered comments have no bearing on the acquisition, but like I said, courts have been known to do funny things. it's certain that Mackey didn't help Whole Foods' chances with his stint as rahodeb. he may very well have hurt.

it's good that Mackey apologized, even if he sounded like he might have had a gun to his head. now, he needs to consider stepping down as CEO, and into some honorary post where he can guide the company, but leave the CEO role to someone with better control over themselves. when you're a CEO, your personal opinion cannot always be separated from the company's opinion.

Originally posted in thread: 10862

As a bottom fisher WFMI is getting tempting for me to buy an entry position. Any input is welcome. Thanks Don

Don,

 I followed M* opinion last year and bought the stock as it seemed to have good value at the time. I sold all of my holdings in it today for a loss. Even with its big hit yesterday it didn't even show much of a dead cat bounce today. I think  WFMI is going the way of Starbucks. Increasing competition and poor economy. I wouldn't be surprised to see it go down further.Might be okay for the long term but I don't have the patience for it. Rather put my money into other investments.

Link:

 http://seekingalpha.com/article/77395-whole-foods-market-like-starbucks-hit-by-slowing-economy-increased-competition

JMHO, Gene

 

Thanks for your input Gene. I value your opinion. I will continue to keep it on my watch list while doing more DD. Best regards, Don