When will they learn?
In its first 3 years on the Nasdaq, naysayers and scared sheep mocked Whole Foods (WFMI – NASDAQ) as a random trend on a path towards mediocrity and ‘easily-forgotten’ status.
Ten years later, and with a gain of more than 2,000%, the pessimists have changed their tune. Though it’s always easy to talk up a massively successful stock after it’s proved to be a blockbuster.
And while there’s no doubt in anyone’s mind now that WFMI is a force – some analysts are still coming up short. Today’s movement is case and point.
Analysts were originally forecasting 57 cents a share on sales of $1.1 billion for second-quarter earnings. But now they’ll have to upgrade as WFMI announced that second-quarter earnings were 60 cents a share on sales of $1.13 billion.
Shares of WFMI surged to $134.70 this morning from a $122.32 close on Thursday.
That, my green friends, is an all-time record high.
I predict that, much like WFMI, a number of other natural and organic food retailers, producers and distributors will continue to beat Wall Street estimates throughout the rest of this year.
Despite the continued growth and validated profitability of the LOHAS market, there are still too many that are unable to realize its long-term potential, and therefore balk when these opportunities initially present themselves.
Like sheep, they’re looking around to see what everyone else thinks. Because let’s face it, mainstream media coverage of this market is almost non-existent (except for the occasional Whole Foods story) and legitimate LOHAS research is buried underneath a mound of misinformation and useless editorials.
But the fact is, between the consistently rapid growth rate of the LOHAS consumer population, a consistent upward trend, year-after-year of sales growth and increasing physical growth both domestically and globally, and its competitive edge over conventional markets – natural and organic food retailers, producers and distributors are going to continue to make their shareholders a lot of money.
And only after this is hammered home a few more quarters will the sheep finally start sniffing around LOHAS.
I’m telling you right now… LOHAS is a mega trend. I’m talking about a trend that will literally change the way you eat, sleep, play and work.
And I plan to be at the center, profiting the entire way.
Another great impact of today’s WFMI news is the ripple effect it had on some of the smaller natural and organic food firms. Though this is typical as every time WFMI hits a new high, there are 3 specific natural and organic food companies that always follow suit with their own upward movement. I’ll be telling you more about these companies shortly.
Until next time,
Jeff Siegel
Editor, Green Chip Stocks
