Game Changer...Amazon buying "Whole Foods"

[Peetz Pool Boy]

I have no idea about M&A with either of these. You know the rumor yesterday was that AMZN was buying SLACK. I've been looking at TGT and it seems cheap here. They now have a 4.9% dividend with a payout ratio just under 50% - that's as high as I like to see it. They still generate substantial free cash flow and they have a good niche business. OTOH, they are losing foot traffic, the competition is heating up and the retail industry is currently a market dog. It's either a good value play or a value trap. I don't follow Kohl's. Macy's (M) is the retail stock most often mentioned as a takeover target these days.

I'm intrigued by major retail "brick + mortars" and their ability to perplexingly remain open in the face of cyber-commerce, which is why I'm particularly concerned about the REIT's in general.

We might be on the verge of the long-awaited "major correction". Why do I suspect this?

When Felli starts paying attention to Jim Rogers, it's time for all of us to rethink our "portfolio allocations"

 

[mn78psu83]

I'm intrigued by major retail "brick + mortars" and their ability to perplexingly remain open in the face of cyber-commerce, which is why I'm particularly concerned about the REIT's in general.

We might be on the verge of the long-awaited "major correction". Why do I suspect this?

When Felli starts paying attention to Jim Rogers, it's time for all of us to rethink our "portfolio allocations"

I'm not savvy enough to buy individual REITs. I understand that O and others have had a great track record. I wouldn't buy individual REITs. I'd go for something like VNQ (.12 expense ratio) or SCHH (.07 expense ratio).

Felli quoting Jim Rogers is sorta like when people were telling me (some were relatives) that they were "trading up" and buying a McMansion as a retirement investment. OTOH, assuming that the Felli/Jim Rogers connection is a contrarian indicator, this bull market has a ways to go then. Jim Rogers, I assume, is a real bear these days.

 

[Peetz Pool Boy]

I'm not savvy enough to buy individual REITs. I understand that O and others have had a great track record. I wouldn't buy individual REITs. I'd go for something like VNQ (.12 expense ratio) or SCHH (.07 expense ratio).

I also don't buy individual REITs. Most indexed REITs have been "berry berry" good and dividend-friendly to investors for a long time, but I sense something is about to change....

I live in a supposed "economically active" area of the country and have noticed an increasing number of "space for rent" signs by Prologis and others.

This summer should prove interesting for the markets, in general. Think about the possible "catalysts", especially come August when most people aren't "paying attention".

Felli might actually be the "investment sage" that this board has been long-missing.

 

[mn78psu83]

LINK: AMZN may have launched a bidding war for Whole Foods

Jana Partners won't mind.

 

[masterbaker65]

Buying WF could also put Amazon in the pharmacy business. CVS, Walgreens, etc. all took big hits on Wall Street after the announcement.

 

[heckmans]

This is as much about having delivery hubs in upper class neighborhoods as it is selling manchego to yuppies. It's another user interface for Amazon and helps eliminate the most difficult, costly, and time consuming area of the distribution chain.

Bezos is a genius.

^^^^^^^^^ THIS ^^^^^^^^^^

Amazon previosly launched Amazon Now to deliver Prime items in 1-2 hours.
As they try to get closer to the customer, WF gives them 430 locations in proximity to higher income americans. It feels like UPS and Fedex buying Mailboxes Etc and Kinkos. The announcement says WF will continue to operate independently, but you gotta believe there is a long-term strategic goal involving distribution.

 

[mn78psu83]

Wonder if Target will become a target to be bought out, or even Kohl's. Both are more mid market than Walmart or Costco, and have a unique market niche, but are smaller then the "big boys" of retail. Any opinions?

One other thing to consider is that some of these companies "might" end up becoming private. It's rumored that Nordstrom's is considering that alternative and Kohl's had previously considered it in 2015. It recently happened with Panera and that was a real nice payout for shareholders. Of course, Panera stock had been on fire for a long time. These retailers foresee the real possibility that their stock prices will be stuck at historically low valuations for some time to come and don't see these valuations as a fair reflection of the real value of their companies.

 

[interrobang]

What's more expensive to buy? Jeff bezos or any item at a whole foods?

 

[Lion84]

They just built a Whole Foods by me in Exton, PA but it has been sitting empty for months with just a shell of a store - heard others in the area are the same so not sure if they had a cash crunch that lead to the Amazon deal or what.

 

[mn78psu83]

LINK: WMT orders Tech Partners to get off AMZN cloud

MSFT Azure to benefit. By the way, MSFT Azure has been picking up on market share on both AMZN and GOOGL. This is not likely to have a large effect on AMZN AWS' current market share dominance (around 33% global share). Even though MSFT has been making up ground they are still far behind (around 10% according to the latest numbers). I should have added IBM in the group that MSFT has been gaining on and taking share from too. IBM has a larger share than GOOGL.

 

[sluggo72]

LINK: AMZN orders Tech Partners to get off AMZN cloud

MSFT Azure to benefit. By the way, MSFT Azure has been picking up on market share on both AMZN and GOOGL.

I think you link should say WMT orders tech partners off AMZN cloud.

 

[mn78psu83]

I think you link should say WMT orders tech partners off AMZN cloud.

I think you're right. Thank you sir.

 

[artsandletters]

I just read that Prince Harry does his own food shopping. Me too, Harry.

 

[mn78psu83]

So far, WFM says it hasn't received any other bids, including WMT who was rumored to have an interest. Of course, it's still early.

LINK: WMT not interested, according to an unnamed Reuters' source, in WFM bid.

 

[interrobang]

I don't know about the other providers, but Amazon is starting to make a dent in gov't system hosting. My company is starting to push getting AWS certified as a result

 

[mn78psu83]

I don't know about the other providers, but Amazon is starting to make a dent in gov't system hosting. My company is starting to push getting AWS certified as a result

AWS is clearly dominant. Remember when they had an outage back in March? It caused a huge problem worldwide.

 

[mn78psu83]

I just read that Prince Harry does his own food shopping. Me too, Harry.

You're just a curmudgeonly "old" Luddite.

 

[artsandletters]

You're just a curmudgeonly "old" Luddite.

I resemble that remark (I haven't used that expression in at least fifty years and I plan to put it back on the shelf after this).

 

[Louisville JD]

I hear ya. We love our little Trader Joe's in State College. I would go there for the dark Belgian chocolate bars alone.

Aldi has that and other European chocolates. 12' of wines in WV also

 

[mn78psu83]

Aldi has that and other European chocolates. 12' of wines in WV also

If they come to Centre County, we'll be sure to check it out.

 

[PS4814]

Aldi is hit or miss. Some things from there are fine....some are nearly inedible.

I may have to give Aldi another shot. When they opened one around me I checked them out an came away with the impression that they were on par with Discount/Outlet grocery stores that sell dent/scratch items. Not that there's not a need for that segment, but not a place I'd normally shop.

 

[interrobang]

Aldi has that and other European chocolates. 12' of wines in WV also

Fun fact. Trader Joe's is owned by a division of Aldi, but not the division that operates the American version of Aldi stores.

 

[ThePennsyOracle]

I may have to give Aldi another shot. When they opened one around me I checked them out an came away with the impression that they were on par with Discount/Outlet grocery stores that sell dent/scratch items. Not that there's not a need for that segment, but not a place I'd normally shop.

Had the same experience, but it's a totally different place now.

 

[PSU87]

I may have to give Aldi another shot. When they opened one around me I checked them out an came away with the impression that they were on par with Discount/Outlet grocery stores that sell dent/scratch items. Not that there's not a need for that segment, but not a place I'd normally shop.

Ketchup....awful
Processed cheese singles (like the Kraft ones).....awful
Plain Greek yogurt.....good to go
Snack foods, like chips, etc, not bad, but can tell the difference from the name brands

You learn what's good and what's not