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Motley Fool Money

Motley Fool Money: 11.07.2014

Motley Fool Money

The Motley Fool

Business, Investing

4.43K Ratings

🗓️ 7 November 2014

⏱️ 39 minutes

🧾️ Download transcript

Summary

On this week's show, our analysts discuss earnings news from Alibaba, GoPro, Tesla, and Whole Foods. Motley Fool columnist Morgan Housel talks elections and investing. And tech entrepreneur Josh Baer shares some startup secrets.

Transcript

Click on a timestamp to play from that location

0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money.

0:10.0

We are not at full global headquarters. This is live from the Belmont in Austin, Texas.

0:15.0

The Motley Fool Money Red-Eye Show. We're going to Routing Crowd. I'm Chris Hill joining me on stage from Motley Fool Money.

0:21.0

We will talk retirement investing with Robert Brokamp. We will talk innovation with Entrepreneur Josh Baer.

0:41.0

We will dig into the big macro with our man Morgan Howell. We will start with the company based right here in Austin.

0:51.0

Fourth quarter revenue and profits came in higher than expected. Same store sales up more than 3% and Jeff Fisher shares up more than 12% on Thursday.

1:01.0

Thursday was a bite into a fresh strawberry for Whole Foods. Good earnings. Turn things around after a couple of week quarters.

1:10.0

What they have going on, Chris, is they're opening many more stores. They opened 38 this past year. They're just ended.

1:17.0

They passed 400, the 400 store count now. They look to have 500 stores or more by 2017.

1:26.0

They have a long way to grow and they're innovating in the new stores that they open. They have beer bars on the roofs of some stores and wine bars and actual putting greens next to some stores.

1:38.0

They're not only innovative in the food but in the experience because they realize these days you need to have a special experience to get customers in the door.

1:48.0

Overall, I agree with their strategies that they're using and I like the direction Whole Foods is going.

1:54.0

It sounds like the direction they're going into is turning into a really great bar where you can buy great groceries.

2:00.0

That's right. Which I love. I was in San Diego, La Jolla a couple weeks ago.

2:06.0

And inside of Whole Foods they had actually a craft brewery, Tory Pines. So people were coming there after work, getting a beer and then going shopping.

2:15.0

That's a brilliant strategy for Whole Foods. Interesting thing from the conference call though. They actually said they're going to stop providing quarterly updates to their annual targets.

2:23.0

We applauded the full because we just don't like companies who focus too much on the short term but that was an interesting kind of move by Walter Rodden, John Mackie, not to give quarterly guidance anymore.

2:32.0

Jeff, when you look at the stock today, is it fairly valued? Does it still have room to run?

2:37.0

So Chris, the interesting thing, of course Whole Foods is spending a lot of money to build new stores. So when you look at their free cash flow, you have to back out what they spend that one time expense of building a new store.

2:49.0

And as of earlier this week before this big jump, they traded around 18 or 19 times their maintenance free cash flow.

2:56.0

Which is a reasonable price I thought for a business this strong and that has so much more room to grow.

...

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