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The Company is a distributor and retailer of natural and organic products in the United States.
They have struck a long term deal with WFM, which will prove to be a serious money maker. More and more people are eating healthy these days. Organic food is no long just for hippies and yuppies, it's going mainstream. This is a rock solid buy and hold(for a very long time) company.
Plant based diets are on the rise and this distributor is poised for growth.
In my opinion the valuation of this company is a little high. There are some issues with the use of cash flow the ratios are not the best of the industry.I prefer tickets like SYY or SPTN .
It seems crazy, to me, that consumers don't mind growth hormones in their milk, and all the toxins that are taken for granted in non-organic commercial agriculture. Farmers (like my wife) say that the word Organic is a funny word because it's actually spelling out the very things we're all supposed to be doing with our food, and we have to certify it because people got greedy and farmers got lazy. Anyway, it's a growth industry (pardon the pun) in part because organic isn't a choice, really. In milk, in yogurt (in particular) it is the only option once you know the truth about growth hormones and make a purchasing decision for your own children.
Not only supplies items to Whole Foods, but other markets as well. As healthy eating becomes popular so will this stock.
UNFI delivers healthy, natural foods which is a trend that will continue to grow for the forseeable future.
all natural, organic, gluten free, no preservatives, no canola oil, ...This is what I have to hear from crazy hippie yoga instructors who drive off in their Hybrid SUV's all day when I hand free stuff out for WF's and other stores like it.. Might as well make some money off of it...
Health, its where its at. Have you noticed lately that the grocery store shelves are filled with products advertising how "clean" they are and how few additives they have. People want natural products.
Very happy with its growth pattern and I think they will remain on top for quite a while!
This portfolio tracks the performance of good companies vs. evil companies.Organics keep pesticides out of our food chain = Good.
Everyone thinks that because Whole Foods is failing that natural foods are on a down slide. The truth is that more and more people make the switch to naturals and organics every time there is a food scare. So why is Whole Foods failing? Because they are overpriced, and every one of the "conventional" grocers that were never competitors before are now carrying what they once had a monopoly on.Where does everyone else get the product from? UNFIThe more Whole Foods declines, the more customers are switching over, and the more business UNFI gains.
This stock was picked by TMFBiarritz in the 2008 TMF Stockpicking Contest.
This is a tough time for companies that rely on somewhat discretionary spending (organic food vs. conventional). Also, UNFI underestimated the costs of assimilating Millbrook. However, UNFI is the leader in organic food distribution, and the organic food movement will not go away. Every time there's a mad cow disease scare or a new study comes out on the dangers of pesticides, more people move to organics and realize they TASTE better too. The management team sounded confident on the recent conference call, and they have a prudent plan in place for continuing to grow the company through early acquisitions of emerging brands, with solid infrastructure already in place. From that perspective, UNFI is trading at a substantial discount today.
The current trend for natural and organic products has hit the shelves of major grocery chains. This will put pressure on smaller chains who won't be able to compete with prices and companies like this will likely shrink back to the smaller niche market of hard to find or rarely used organic foods. As the economy tightens, consumers will be more likely to sacrifice some quality to allow for smaller grocery budgets.
If you don´t believe in fundamentals (you should!!) then technically, it has to fill the gap it left behind.THUS, play it now at 19 and sell at 27, that´s not a bad 30%. Will pay you an un-healthy lunch at a burger chain, the least!
natural/organic food distributor
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