A comparative example would be Whole Foods ( WFM ), they have limited growth yet trade at 30x and 25x expected; much higher than TFM . Overall I think downside risk is limited from here since poor weather conditions have been baked into the last two quarters (causing a severe sell-off). Although the broader market could generate additional , making shares even cheaper.
The only reason I am not creating a massive position is because the technical outlook remains relatively weak. Moving averages and formations are . However with a margin of safety larger than 25% it looks attractive. Not to mention that institutional ownership is high (a positive factor).
If it continues to fall I will add to my position of 100k in increments of 4% or so (about $31.25 would be my next average down price).
IN THE CHART: the blue circles represent a major price discrepancy. If the next few quarters beat expectations, the share price will easily rise to levels seen a several months ago. I am currently buying shares at $32.55-32.60 (2:53 pm), you can join me if you'd like :)
Thanks for reading. Share your thoughts and comments!
Anyways, shares are up 11% after-hours, and I highly recommend not selling. There will be volatility so be prepared.
The break above $37.10 was a head-fake, I knew the prints were messy up there lol. Anyways, adding some back on at $34.50 in after-hours but hopefully it heads lower. I'm still looking for larger net exposure.