FOR THE LAST WEEK WFM HAS BEEN TRADING ABOVE THE $42 ALL CASH OFFER FOR WHOLE FOODS. I AM TAKING THE VIEW THAT WHEN A STOCK IS CONSISTENTLY ABOVE THE OFFER PRICE (ESPECIALLY IN AN ALL CASH BID) THAT THERE ARE OTHERS INTERESTED IN THE COMPANY. THE STORY HAS GOTTEN A LOT OF ATTENTION AND THERE ARE SEVERAL OTHER COMPANIES WHO COULD USE THIS (NOW THAT IT HAS RECEIVED ALL THIS ATTENTION) COMPANY AS A STEPPING STONE OR EVEN JUST TO GAIN A FOOTHOLD IN THE GROCERY MARKET. THOSE RUN FROM WMT, TGT, OR ANY OF THE "REAL GROCERY CHAINS" LIKE KR. BOTTOM LINE IS THAT THIS IS A LOW RISK TRADE WITH THIS ONE SELLING FOR ONLY $ .50 OVER THE CASH BID. LAST, BUT NOT LEAST, THIS IS A PRETTY LOW BID BASED ON WHERE THE STOCK HAS BEEN ($57 IN EARLY 2015) AND IT MAKES THIS LOOK LIKE A VERY LOW-COST SPECULATION OF A HIGHER BID. I'M BUYING BOTH THE STOCK AND THE WFM 8/43 CALLS ($ .41)...OZ
In my post of last week I explained that it isn't likely that any company with physical stores ie WMT,KR etc. would pay for the name and customer list. Amazon having no physical footprint is willing to spend $15 Billion to get into this business and to gain a physical footprint for their existing customers to pick up other goods they buy on Amazon prime. Only another online entity, such as Google or Alibaba would find it useful. Amazon has deep pockets, an agreement that allows the current management to keep their jobs and isn't going to be outbid by someone else. The deal is done. Don't waste money looking for a higher bid.