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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (75500)	4/26/2024 7:50:39 AM
From: E_K_S	Respond to of 78476

RE: Value Proposition in the Grocers You make some good points. AMZN did announce a monthly grocery delivery plan/fee which Whole Foods will be part of that service. UNFI's largest account is Whole Foods. I am still waiting for management to prove to me they can make reoccurring growing FCF (w/ years behind them in that huge TGT warehouse acquisition). How does COSTCO do it? Their valuation is crazy but every time I go to their store it is packed. PE is 46x and a small 0.64% div yield. My buys in KR (10 small buys 10/2023 & 11/2023) w/ an avg price at $43.60/share are +27% but may/could be at their high. All time high for KR is at/near $60. Paul Sr. has been correct; buy at a PE <= 10x, it is now 11.8x. I want to hold at least 12 months for the long term capital gain but still have 6 months. WMT the large company in the sector w/ a $485 Billion market cap has a 27x PE. ---------------------------------------------- I plan to start peeling off my KR shares at/above $61 only because of the other grocery company options carry a much higher PE. As far as UNFI, I am tempted to add at the current prices thinking the AMZN delivery program is a positive for UNFI. Could AMZN just acquire UNFI for their warehouse distribution foot print? UNFI's market cap is $526 million and does come w/ some valuable warehouse/distribution assets.

To: Madharry who wrote (75500)	4/26/2024 12:03:33 PM
From: S. maltophilia	1 Recommendation Recommended By E_K_S Read Replies (2) \| Respond to of 78476

why would you think unfi shares are crazy cheap Should've said "crazy cheaper." It's one falling knife discussed here I haven't tried to catch yet. Maybe, maybe not. Saw this from last week about their biggest customer that I wasn't aware of: Moody’s also cited UNFI’s high concentration of sales with its largest customer, Whole Foods Market, and noted that Whole Foods’ parent company, Amazon, has a “deepening relationship” with SpartanNash, a UNFI competitor. (Amazon has a warrant agreement that could result in Amazon owning 12%-15% of SpartanNash stock by 2027 if certain criteria are met.) supermarketnews.com Some other UNFI stories of interest in that publication.