gsurowiec Posted August 4, 2014 Share Posted August 4, 2014 Posted on Beyond Proxy last week. Thought I would share with the group. Thanks, Glenn http://www.beyondproxy.com/fairway-group-holdings-fwm/ Link to comment Share on other sites More sharing options...
Tim Eriksen Posted August 4, 2014 Share Posted August 4, 2014 An unprofitable grocery store at 18x book value may not get many fans on this board. Link to comment Share on other sites More sharing options...
obtuse_investor Posted August 7, 2014 Share Posted August 7, 2014 Those profit margins are under major pressure. See this article in the Economist about WholeFoods. http://www.economist.com/news/business/21610289-peddler-pricey-organic-and-natural-foods-finds-it-has-competition-victim-success Link to comment Share on other sites More sharing options...
AzCactus Posted December 18, 2014 Share Posted December 18, 2014 Does anyone have any insights into this company? Having a preliminary look there are several interesting points: *Infrastructure in place for 30 stores (only 15 at present time) *Stock price down 84% YTD *New management in place Obviously paying prices today for future growth is a bad idea but at this point the stock price seems to represent obscurity. Link to comment Share on other sites More sharing options...
Deepdive Posted June 9, 2016 Share Posted June 9, 2016 I think FWM is the product of the 2013-2014 bull market where you could sell an overlevered growth story. In 2016, the investors are paying the price. Just speculating, the concepts that originate in New York City are hard to scale outwards and I've seen companies run into trouble. NYC breeds a unique situation with its high foot traffic, high rent, and high disposable outcome. People are more willing to pay higher prices for unique products and I don't think this exists outside of the big cities like NYC, LA, San Fran. Link to comment Share on other sites More sharing options...
winjitsu Posted June 9, 2016 Share Posted June 9, 2016 I think FWM is the product of the 2013-2014 bull market where you could sell an overlevered growth story. In 2016, the investors are paying the price. Just speculating, the concepts that originate in New York City are hard to scale outwards and I've seen companies run into trouble. NYC breeds a unique situation with its high foot traffic, high rent, and high disposable outcome. People are more willing to pay higher prices for unique products and I don't think this exists outside of the big cities like NYC, LA, San Fran. No, you hit it right on the head and any cursory due-diligence could have figured that out. I used to live near the 125th street Broadway Location in Manhattan. Advantage was entirely RE: advantageous location and slightly larger stores that could offer better deals than your small grocers. People would go out of their way to drive to Fairway based on their deals. Its really hard for Kroger Meijers and other large grocers to enter into NYC, so they had a nice little niche carved out. Fairway is pretty popular among the working class (atleast in Manhattan). On the higher end, Whole Foods, Trader Joes, and Costco seem to be more popular. Growth story was based on suburb expansion, was pretty much dead on arrival. I remember thinking about shorting it during the IPO and am kicking myself now on what seemed pretty obvious. Link to comment Share on other sites More sharing options...
Deepdive Posted June 12, 2016 Share Posted June 12, 2016 I wonder if we can make a list of companies like FWM that started in NYC to short. Link to comment Share on other sites More sharing options...
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