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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (15162)	4/29/2009 5:44:29 PM
From: Smiling Bob	Respond to of 19256

Whole Foods downgraded, high-end perception cited Morgan Stanley downgrades shares of Whole Foods, says consumers view grocer as too high-end * On Wednesday April 29, 2009, 2:31 pm EDT PORTLAND, Ore. (AP) -- Morgan Stanley on Wednesday downgraded shares of Whole Foods Market Inc. saying the company is still considered too high-end for the recession. Analysts Mark Wiltamuth wrote in a research note that a Morgan Stanley survey shows shoppers still view Whole Foods as too expensive and are reducing their spending throughout the store. He said same-stores sales, or sales at locations open at least a year, will be key to establishing the stock's value but estimate they could be down for all of 2009. Morgan Stanley downgraded Whole Foods shares to "Underweight" from "Equal-weight" and lowered their price target to $15, which suggests downside of 23 percent from its closing price Tuesday of $19.46. Shares of Whole Foods have more than doubled since the beginning of 2009 but fallen 46 percent since reaching a 52-week high of $36.03 in May. "We think (Whole Foods) shares have moved too far too fast; we see a correction ahead," Wiltamuth wrote. He did note, however, that Whole Foods has room to cut costs. The Austin, Texas company has made some reductions but after posting 11 years of higher same-store sales with little operating margin improvement, he noted there is still room for cost cutting. Shares of Whole Foods rose 28 cents to $19.74 in afternoon trading Wednesday amid a larger market uptick.