RE: [CANSLIM] Whole Foods Markets

From: "Mike Gibbons" <mike@proactech.com>
Subject: RE: [CANSLIM] Whole Foods Markets
Date: Tue, 8 Oct 2002 11:25:14 -1000
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Hi Kelly,

If you include a link to the chart instead of a screenshot, then the
rollovers will work too!

A link would be like this:

http://www.cwhcharts.com/charts/canslimchart.php?s=<symbol>&period=<months>

where you substitute the ticker for <symbol> and the number of months for
<period>. Omitting "&period=<months>" will cause the chart period to default
to 12.

You can also capture the link with a right mouseclick and properties.

Aloha,

Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com


- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Kelly Short
Sent: Tuesday, October 08, 2002 9:45 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] Whole Foods Markets


Read a review of Wholefoods Markets today from Fool.com (which I know
immediately makes it suspect since analysts are usually wrong, but what
if...). Their review of the company's performance looks impressive but I
haven't performed DD yet. The industry and "M" stink (did ya'll know that?)
but perhaps it might be one to keep on a long term list. I've included the
text of the review from Fool.com below as well as a screenshot of WFMI from
cwhCharts.com (all at once- "thanks Mike!") accessible from this link:
<http://www.kellyrshort.com/canslim/wfmi.gif> (37k) (See disclaimer
information below)


WFMI Review:

Whole Foods Market (NASDAQ: WFMI), founded in 1980, is the world's largest
supermarket retailer of natural and organic foods -- which is among the
fastest-growing segments in the food industry. The company has stormed
through nine consecutive quarters of +20% sales growth...it has generated
more than $150 million in free cash flow over the past year...and it is
richly capitalized at $2.5 billion.

What's more, Whole Foods' management, financial discipline and corporate
disclosure are superb. That's why this is one of our favorite stocks today,
and one we recommend to you without reservation. Let's take a look at these
three key variables:

1. Management. Whole Foods' Chairman and CEO, John Mackey, has led the
company since he founded it in 1980. His tenure is complemented by Glenda
Flanagan's -- she's been CFO since 1988. The executive officers are
experienced but young, with all but one under the age of 50. And, in a
marketplace rife with disgustingly excessive executive compensation, there's
comfort in knowing that Whole Foods' executive salaries are capped at 10X
that of the average store worker.

The result is enduring leadership driven around a mission and core values
that are actually believable. (In an age where Enron's 2000 Annual Report
listed "integrity" as a core value -- promising to "work openly, honestly
and sincerely" -- you can't be too careful about this one.) For five years
running, Whole Foods has been ranked among Fortune magazine's Top 100 places
to work in America, and all of our research shows that this is a strong,
honest management team with a solid business plan.

2. Financial Discipline. Retail chains notoriously do a poor job of planning
their expansions. Most over-accelerate store openings, often to cloak
mediocrity at long-standing locations. Contrast that with Whole Foods. The
company has consistently posted same-store sales growth while expanding
locations by 10%-20% per year through acquisitions and store openings.

What's more, the beauty of Whole Foods is evident one step below announced
earnings (which logged in at $67.9 million in Fiscal 2001) -- down in the
cash flows. Its 131 stores (going to 150 this year) are run more efficiently
than ever before, with an increasing number of customers paying high-end
prices for natural, healthy foods. Operating cash flow for the second
quarter of 2002 was a whopping $75 million. The company also maintains high
margins relative to other retail supermarkets, exercises very tight
management of its inventory and has kept its debt under control.

3. Corporate Disclosure. On its web site, Whole Foods offers transcripts of
its last 14 conference calls, a spreadsheet breaking out the economics of
new store openings, and access to all of its financial filings. Corporate
America should take note: Whole Foods' filings are clearly presented and
highly readable! Full disclosure is a requirement in today's turbulent
market (we won't recommend a single company that doesn't pass this critical
test), and Whole Foods has got it!

In the quarter just reported, Whole Foods' numbers were outstanding: Sales
grew 21%. Gross margins rose fractionally to 35. Cash rose, and debts fell.
And management reports that it is looking to have 400 stores and $10 billion
in sales by 2010!

Fool.com: 1999-2002 Phillips Investment Resources, LLC. All rights reserved.
cwhCharts.com: cwhCharts.com; trademark information available at
webmaster@cwhcharts.com
Investors Business Daily: You're not mentioned here, so I'm not going to
advertise for you.



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