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Invest Healthy with Whole Foods? Buy or Sell Schlumberger?

These are our articles posted on Seeking Alpha. Click "READ MORE" if you would like to read the rest of the articles.

Stay Away From Whole Foods Until Further Notice

Summary

  • WFM has been facing a steep and persistent decline in traffic.
  • Although WFM has been opening new stores, the company’s average sales per square foot have been declining ever since reaching a maximum in 2013.
  • Success of the ‘365’ initiative will have a huge impact on the time it takes WFM to return to positive comps.
  • WFM’s exclusive brands program could also play an important role in the turnaround.

The food may be healthy, but Whole Foods' stock isn't looking so healthy right now.

It seems as if Whole Foods (NASDAQ:WFM) has been the darling of health-conscious consumers since time immemorial. Being the largest organic foods supermarket in the U.S., Whole Foods, over the years has been successful in attracting customers with deep pockets willing to pay a premium for organic products of the highest quality. And Whole Foods, as a business, is undoubtedly unique because of its lofty core values and emphasis on offering a fulfilling shopping experience. Lately, we've seen an evident increase in the number of grocers offering organic products which has led WFM's bears to doubt the company's 'inimitability' as far as organic and natural offerings are concerned. Bulls, still, allude to the fact that a lot of these raging organic retailers including the likes of Kroger (NYSE:KR) and Wal-Mart (NYSE:WMT) are merely 'self-certified' unlike Whole Foods whose stores are externally certified by California Certified Organic Farmers ("CCOF").

In this article, I analyze WFM's recent financial performance, highlighting the company's most pressing concerns. The goal is to assess whether a bullish WFM outlook is warranted or not... READ MORE



Sell Schlumberger On The Rally

Summary

  • Schlumberger posted poor first quarter results, and even worse results are expected in the following quarters.
  • The company’s shares are soaring thanks to stabilizing oil prices, but its revenue generation is dependent on investments, which have been declining at a considerable rate.
  • Selling this stock on the rally is a good strategy, as the company will need much more time to completely stabilize.

Schlumberger Ltd (NYSE:SLB), the globe's largest oilfield services company, has been in trouble for the last year. The volatility in oil prices significantly impacted its business model and wreaked havoc on its revenue base. The company's stock plunged from $95 a share last summer to only $59 in the beginning of this year. However, after reaching its 52-week low on January 20th, SLB stock again began to rise.

The company's share price surged largely due to an improvement in oil prices, without generating any change to its business fundamentals. SLB's stock soared nearly 27% after dipping to a 52-week low of $59 a share. At present, its stock is trading around $79 a share, which does not approach its valuations and future business fundamentals... READ MORE

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