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Last December I wrote that Whole Foods Market (WFMI) was overpriced and probably due for a fall. At the time, the stock was at $76 a share (post-split). What happened? Of course, it rallied $78.

But on Wall Street, the true value of a stock will eventually come through. You just need to be patient. Yesterday, Whole Foods’ stock dropped nearly 12%. The stock is now at $51 a share. That’s a pretty nasty fall.

The company actually reported decent earnings but sales came in below expectations. It’s a good company, but the shares still look pricey.

Posted by edelfenbein at August 2, 2006 11:59 AM