From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2970 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Tuesday, October 8 2002 Volume 02 : Number 2970 In this issue: [CANSLIM] Whole Foods Markets RE: [CANSLIM] Worley's Weekend Weeview RE: [CANSLIM] Worley's Weekend Weeview RE: [CANSLIM] Whole Foods Markets ---------------------------------------------------------------------- Date: Tue, 8 Oct 2002 14:45:28 -0500 From: "Kelly Short" Subject: [CANSLIM] Whole Foods Markets Read a review of Wholefoods Markets today from Fool.com (which I know = immediately makes it suspect since analysts are usually wrong, but what = if...). Their review of the company's performance looks impressive but I = haven't performed DD yet. The industry and "M" stink (did ya'll know = that?) but perhaps it might be one to keep on a long term list. I've = included the text of the review from Fool.com below as well as a = screenshot of WFMI from cwhCharts.com (all at once- "thanks Mike!") = accessible from this link: = (37k) (See disclaimer information below) WFMI Review: Whole Foods Market (NASDAQ: WFMI), founded in 1980, is the world's = largest supermarket retailer of natural and organic foods -- which is = among the fastest-growing segments in the food industry. The company has = stormed through nine consecutive quarters of +20% sales growth...it has = generated more than $150 million in free cash flow over the past = year...and it is richly capitalized at $2.5 billion.=20 What's more, Whole Foods' management, financial discipline and corporate = disclosure are superb. That's why this is one of our favorite stocks = today, and one we recommend to you without reservation. Let's take a = look at these three key variables:=20 1. Management. Whole Foods' Chairman and CEO, John Mackey, has led the = company since he founded it in 1980. His tenure is complemented by = Glenda Flanagan's -- she's been CFO since 1988. The executive officers = are experienced but young, with all but one under the age of 50. And, in = a marketplace rife with disgustingly excessive executive compensation, = there's comfort in knowing that Whole Foods' executive salaries are = capped at 10X that of the average store worker.=20 The result is enduring leadership driven around a mission and core = values that are actually believable. (In an age where Enron's 2000 = Annual Report listed "integrity" as a core value -- promising to "work = openly, honestly and sincerely" -- you can't be too careful about this = one.) For five years running, Whole Foods has been ranked among Fortune = magazine's Top 100 places to work in America, and all of our research = shows that this is a strong, honest management team with a solid = business plan.=20 2. Financial Discipline. Retail chains notoriously do a poor job of = planning their expansions. Most over-accelerate store openings, often to = cloak mediocrity at long-standing locations. Contrast that with Whole = Foods. The company has consistently posted same-store sales growth while = expanding locations by 10%-20% per year through acquisitions and store = openings.=20 What's more, the beauty of Whole Foods is evident one step below = announced earnings (which logged in at $67.9 million in Fiscal 2001) -- = down in the cash flows. Its 131 stores (going to 150 this year) are run = more efficiently than ever before, with an increasing number of = customers paying high-end prices for natural, healthy foods. Operating = cash flow for the second quarter of 2002 was a whopping $75 million. The = company also maintains high margins relative to other retail = supermarkets, exercises very tight management of its inventory and has = kept its debt under control.=20 3. Corporate Disclosure. On its web site, Whole Foods offers transcripts = of its last 14 conference calls, a spreadsheet breaking out the = economics of new store openings, and access to all of its financial = filings. Corporate America should take note: Whole Foods' filings are = clearly presented and highly readable! Full disclosure is a requirement = in today's turbulent market (we won't recommend a single company that = doesn't pass this critical test), and Whole Foods has got it!=20 In the quarter just reported, Whole Foods' numbers were outstanding: = Sales grew 21%. Gross margins rose fractionally to 35. Cash rose, and = debts fell. And management reports that it is looking to have 400 stores = and $10 billion in sales by 2010!=20 Fool.com: 1999-2002 Phillips Investment Resources, LLC. All rights = reserved. cwhCharts.com: cwhCharts.com; trademark information available at = webmaster@cwhcharts.com Investors Business Daily: You're not mentioned here, so I'm not going to = advertise for you. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Tue, 8 Oct 2002 16:44:24 -0400 From: "Rocky Sanghvi" Subject: RE: [CANSLIM] Worley's Weekend Weeview This is a multi-part message in MIME format. - ------=_NextPart_000_0141_01C26EE9.F5B37790 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Scott, I work extensively with Manufacturing companies throughout the country and I completely agree with your comments. One of the lessons coming home to roost is that you cant have an economy based entirely on the Service sector. A society has to MAKE something tangible to have a thriving economy. Rocky - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Logan, Scott L. Sent: Tuesday, October 08, 2002 4:08 PM To: 'canslim@lists.xmission.com' Subject: RE: [CANSLIM] Worley's Weekend Weeview I don't think the American public has realized the effects of losing our manufacturing jobs. Thousands of good paying blue collar jobs are disappearing from our landscape. But I like most everyone else enjoy the low cost goods that American factories( and Unions ) have priced themselves out of. - -----Original Message----- From: Tom Worley [mailto:stkguru@bellsouth.net] Sent: Sunday, October 06, 2002 10:32 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Worley's Weekend Weeview ISM (Institute of Supply Management, formerly known as NAPM - Nat'l Assn of Purchasing Managers) produces two major monthly reports, one on manufacturing, and one on the service sector. Both reports (indexes) consist of a number of sub-components, including an employment factor which is used to measure increase / decrease in actual jobs. Both reports this week showed that more jobs were being lost in Sept than in Aug, even tho the service sector report showed a strong gain overall. For some years now, the manufacturing sector has been losing jobs while the service sector has been gaining. It's unusual for both to lose jobs, and dovetails with most other employment data (except for Labor's reports). here's CNN's version of the report http://money.cnn.com/2002/10/03/news/economy/ism_services.reut/index.htm - ----- Original Message ----- From: Ann To: canslim@lists.xmission.com Sent: Sunday, October 06, 2002 11:19 AM Subject: Re: [CANSLIM] Worley's Weekend Weeview Tom, can you please explain this paragraph? Thanks, Ann ISM reports that September service sector growth jumped a full 3 percentage points to 53.9%, eighth straight month of growth, and well over expectations of a gain to 51.4%. As mentioned above, the rate of layoffs accelerated with the employment factor down to 46.6% from 47.3%, the 19th straight month of job losses. - ------=_NextPart_000_0141_01C26EE9.F5B37790 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable

Scott,

 

I work extensively with = Manufacturing companies throughout the country and I completely agree with your = comments.  

One of the = lessons coming home to roost is that you cant have an economy based entirely on the = Service sector.  A society has to MAKE something tangible to have a = thriving economy. 

 

Rocky

-----Original = Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Logan, Scott L.
Sent: Tuesday, October = 08, 2002 4:08 PM
To: = 'canslim@lists.xmission.com'
Subject: RE: [CANSLIM] = Worley's Weekend Weeview

 

I don't think = the American public has realized the effects of losing our manufacturing = jobs. Thousands of good paying blue collar jobs are disappearing from our = landscape. But I like most everyone else enjoy the low cost goods that American = factories( and Unions ) have priced themselves out of.

-----Original Message-----
From: Tom Worley [mailto:stkguru@bellsouth.net]
Sent: Sunday, October 06, = 2002 10:32 AM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] = Worley's Weekend Weeview

ISM (Institute of Supply = Management, formerly known as NAPM - Nat'l Assn of Purchasing Managers) produces two = major monthly reports, one on manufacturing, and one on the service = sector.  Both reports (indexes) consist of a number of sub-components, including = an employment factor which is used to measure increase / decrease in actual jobs.  Both reports this week showed that more jobs were being lost = in Sept than in Aug, even tho the service sector report showed a strong = gain overall. For some years now, the manufacturing sector has been losing = jobs while the service sector has been gaining. It's unusual for both to lose = jobs, and dovetails with most other employment data (except for Labor's = reports).

 

here's CNN's version of the = report

 

----- Original Message = - -----

From: Ann =

Sent: Sunday, October 06, 2002 11:19 AM

Subject: Re: [CANSLIM] Worley's Weekend Weeview

 

Tom, can you please explain = this paragraph?

 

Thanks,

 

Ann

 

ISM reports that September = service sector growth jumped a full 3 percentage points to 53.9%, eighth = straight month of growth, and well over expectations of a gain to 51.4%. As mentioned = above, the rate of layoffs accelerated with the employment factor down to 46.6% = from 47.3%, the 19th straight month of job losses.

 

 

- ------=_NextPart_000_0141_01C26EE9.F5B37790-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Tue, 8 Oct 2002 15:55:58 -0500 From: "Logan, Scott L." Subject: RE: [CANSLIM] Worley's Weekend Weeview This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - ------_=_NextPart_001_01C26F0D.1A6B1AC0 Content-Type: text/plain; charset="iso-8859-1" Rocky, Thank you for your comments. My father has been in the transportation industry( trucking ) for 30 years. I have listened to many accounts of manufacturing facilities that were once shipping freight locally here in Texas move out of the country, or just go belly up not being able to match foreign prices( China, and Mexico in particular). The unions are just tightening the noose around their own necks. Scott - -----Original Message----- From: Rocky Sanghvi [mailto:rs@mylodestar.com] Sent: Tuesday, October 08, 2002 3:44 PM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Worley's Weekend Weeview Scott, I work extensively with Manufacturing companies throughout the country and I completely agree with your comments. One of the lessons coming home to roost is that you cant have an economy based entirely on the Service sector. A society has to MAKE something tangible to have a thriving economy. Rocky - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Logan, Scott L. Sent: Tuesday, October 08, 2002 4:08 PM To: 'canslim@lists.xmission.com' Subject: RE: [CANSLIM] Worley's Weekend Weeview I don't think the American public has realized the effects of losing our manufacturing jobs. Thousands of good paying blue collar jobs are disappearing from our landscape. But I like most everyone else enjoy the low cost goods that American factories( and Unions ) have priced themselves out of. - -----Original Message----- From: Tom Worley [mailto:stkguru@bellsouth.net] Sent: Sunday, October 06, 2002 10:32 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Worley's Weekend Weeview ISM (Institute of Supply Management, formerly known as NAPM - Nat'l Assn of Purchasing Managers) produces two major monthly reports, one on manufacturing, and one on the service sector. Both reports (indexes) consist of a number of sub-components, including an employment factor which is used to measure increase / decrease in actual jobs. Both reports this week showed that more jobs were being lost in Sept than in Aug, even tho the service sector report showed a strong gain overall. For some years now, the manufacturing sector has been losing jobs while the service sector has been gaining. It's unusual for both to lose jobs, and dovetails with most other employment data (except for Labor's reports). here's CNN's version of the report http://money.cnn.com/2002/10/03/news/economy/ism_services.reut/index.htm - ----- Original Message ----- From: Ann To: canslim@lists.xmission.com Sent: Sunday, October 06, 2002 11:19 AM Subject: Re: [CANSLIM] Worley's Weekend Weeview Tom, can you please explain this paragraph? Thanks, Ann ISM reports that September service sector growth jumped a full 3 percentage points to 53.9%, eighth straight month of growth, and well over expectations of a gain to 51.4%. As mentioned above, the rate of layoffs accelerated with the employment factor down to 46.6% from 47.3%, the 19th straight month of job losses. - ------_=_NextPart_001_01C26F0D.1A6B1AC0 Content-Type: text/html; charset="iso-8859-1"
Rocky,
 Thank you for your comments.
My father has been in the transportation industry( trucking ) for 30 years. I have listened to many accounts of manufacturing facilities that were once shipping freight locally here in Texas move out of the country, or just go belly up not being able to match foreign prices( China, and Mexico in particular).
 
The unions are just tightening the noose around their own necks.
 
 
Scott
-----Original Message-----
From: Rocky Sanghvi [mailto:rs@mylodestar.com]
Sent: Tuesday, October 08, 2002 3:44 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Worley's Weekend Weeview

Scott,

 

I work extensively with Manufacturing companies throughout the country and I completely agree with your comments.  

One of the lessons coming home to roost is that you cant have an economy based entirely on the Service sector.  A society has to MAKE something tangible to have a thriving economy. 

 

Rocky

-----Original Message-----
From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Logan, Scott L.
Sent: Tuesday, October 08, 2002 4:08 PM
To: 'canslim@lists.xmission.com'
Subject: RE: [CANSLIM] Worley's Weekend Weeview

 

I don't think the American public has realized the effects of losing our manufacturing jobs. Thousands of good paying blue collar jobs are disappearing from our landscape. But I like most everyone else enjoy the low cost goods that American factories( and Unions ) have priced themselves out of.

-----Original Message-----
From: Tom Worley [mailto:stkguru@bellsouth.net]
Sent: Sunday, October 06, 2002 10:32 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Worley's Weekend Weeview

ISM (Institute of Supply Management, formerly known as NAPM - Nat'l Assn of Purchasing Managers) produces two major monthly reports, one on manufacturing, and one on the service sector.  Both reports (indexes) consist of a number of sub-components, including an employment factor which is used to measure increase / decrease in actual jobs.  Both reports this week showed that more jobs were being lost in Sept than in Aug, even tho the service sector report showed a strong gain overall. For some years now, the manufacturing sector has been losing jobs while the service sector has been gaining. It's unusual for both to lose jobs, and dovetails with most other employment data (except for Labor's reports).

 

here's CNN's version of the report

 

----- Original Message -----

From: Ann

Sent: Sunday, October 06, 2002 11:19 AM

Subject: Re: [CANSLIM] Worley's Weekend Weeview

 

Tom, can you please explain this paragraph?

 

Thanks,

 

Ann

 

ISM reports that September service sector growth jumped a full 3 percentage points to 53.9%, eighth straight month of growth, and well over expectations of a gain to 51.4%. As mentioned above, the rate of layoffs accelerated with the employment factor down to 46.6% from 47.3%, the 19th straight month of job losses.

 

 

- ------_=_NextPart_001_01C26F0D.1A6B1AC0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Tue, 8 Oct 2002 11:25:14 -1000 From: "Mike Gibbons" Subject: RE: [CANSLIM] Whole Foods Markets Hi Kelly, If you include a link to the chart instead of a screenshot, then the rollovers will work too! A link would be like this: http://www.cwhcharts.com/charts/canslimchart.php?s=&period= where you substitute the ticker for and the number of months for . Omitting "&period=" will cause the chart period to default to 12. You can also capture the link with a right mouseclick and properties. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Kelly Short Sent: Tuesday, October 08, 2002 9:45 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Whole Foods Markets Read a review of Wholefoods Markets today from Fool.com (which I know immediately makes it suspect since analysts are usually wrong, but what if...). Their review of the company's performance looks impressive but I haven't performed DD yet. The industry and "M" stink (did ya'll know that?) but perhaps it might be one to keep on a long term list. I've included the text of the review from Fool.com below as well as a screenshot of WFMI from cwhCharts.com (all at once- "thanks Mike!") accessible from this link: (37k) (See disclaimer information below) WFMI Review: Whole Foods Market (NASDAQ: WFMI), founded in 1980, is the world's largest supermarket retailer of natural and organic foods -- which is among the fastest-growing segments in the food industry. The company has stormed through nine consecutive quarters of +20% sales growth...it has generated more than $150 million in free cash flow over the past year...and it is richly capitalized at $2.5 billion. What's more, Whole Foods' management, financial discipline and corporate disclosure are superb. That's why this is one of our favorite stocks today, and one we recommend to you without reservation. Let's take a look at these three key variables: 1. Management. Whole Foods' Chairman and CEO, John Mackey, has led the company since he founded it in 1980. His tenure is complemented by Glenda Flanagan's -- she's been CFO since 1988. The executive officers are experienced but young, with all but one under the age of 50. And, in a marketplace rife with disgustingly excessive executive compensation, there's comfort in knowing that Whole Foods' executive salaries are capped at 10X that of the average store worker. The result is enduring leadership driven around a mission and core values that are actually believable. (In an age where Enron's 2000 Annual Report listed "integrity" as a core value -- promising to "work openly, honestly and sincerely" -- you can't be too careful about this one.) For five years running, Whole Foods has been ranked among Fortune magazine's Top 100 places to work in America, and all of our research shows that this is a strong, honest management team with a solid business plan. 2. Financial Discipline. Retail chains notoriously do a poor job of planning their expansions. Most over-accelerate store openings, often to cloak mediocrity at long-standing locations. Contrast that with Whole Foods. The company has consistently posted same-store sales growth while expanding locations by 10%-20% per year through acquisitions and store openings. What's more, the beauty of Whole Foods is evident one step below announced earnings (which logged in at $67.9 million in Fiscal 2001) -- down in the cash flows. Its 131 stores (going to 150 this year) are run more efficiently than ever before, with an increasing number of customers paying high-end prices for natural, healthy foods. Operating cash flow for the second quarter of 2002 was a whopping $75 million. The company also maintains high margins relative to other retail supermarkets, exercises very tight management of its inventory and has kept its debt under control. 3. Corporate Disclosure. On its web site, Whole Foods offers transcripts of its last 14 conference calls, a spreadsheet breaking out the economics of new store openings, and access to all of its financial filings. Corporate America should take note: Whole Foods' filings are clearly presented and highly readable! Full disclosure is a requirement in today's turbulent market (we won't recommend a single company that doesn't pass this critical test), and Whole Foods has got it! In the quarter just reported, Whole Foods' numbers were outstanding: Sales grew 21%. Gross margins rose fractionally to 35. Cash rose, and debts fell. And management reports that it is looking to have 400 stores and $10 billion in sales by 2010! Fool.com: 1999-2002 Phillips Investment Resources, LLC. All rights reserved. cwhCharts.com: cwhCharts.com; trademark information available at webmaster@cwhcharts.com Investors Business Daily: You're not mentioned here, so I'm not going to advertise for you. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #2970 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.