Amazon's bid for Whole Foods has added 30% to the share price in two days, putting the company in the spotlight. Exactly one month before the bid however, Mike Dyer, of Neuberger Berman, picked the stock out at the Future Generation Investor Forum as his best stock idea. Livewire covered the event, and our notes on Mike's thesis are here:
Wholefoods Market (NASDAQ:WFM), Market Cap $11.4bil, YTD +18.5%
Wholefoods is the largest natural and organics US supermarket with 464 stores. Neuberger bought it last year at $28. WFM has strong brand, but business had grown too fast and had issues. Neuberger suggested changes (new CFO, Customer base, Unified tech platform, Started to see progress, etc), which were partly implemented. More aggressive activist investors, Jana, bought 8% and have pushed for wider changes. Neuberger expect price of $45 (Versus current $36).
You can access our full notes from the event here: (VIEW LINK)
You can also watch Mike's presentation here (from 1 hour 56 minutes): (VIEW LINK)