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Brian Kelly: Around $67, Whole Foods ‘Worth a Shot’

”I think the valuation is a little full and the report was somewhat disappointing,” says Joe Terranova.

”But they usually beat,” counters an enthusiastic Brian Kelly. “The market had a lot of expectations built in.”

Those were the immediate reactions from two of the Fast Money traders as they considered the the 4% decline in Whole Foods during extended trade, and how to trade the move.

The sell-off was triggered by earnings that met Street expectations but nothing more. Also Whole Foods said a key sales gauge rose less than analysts had expected

”But they also said the $50 and up basket is starting to increase and overall sales increased,” counters Kelly. Total sales rose more than 12 percent to $2.4 billion.

”I think they’re executing. Around $67, I think it’s worth a shot,” Kelly says.

By the numbers the grocery store chain posted net income of $75.5 million, or 42 cents per share, for the fiscal fourth quarter ended Sept. 25.

Analysts, on average, were looking for a profit of 42 cents per share for the latest quarter, according to Thomson Reuters I/B/E/S.

Closely watched same store sales, which excludes relocations, expansion and stores open less than a year increased 8.4 percent -- short of the 9.1 percent gain analysts had expected.





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Trader disclosure: On Nov 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour is long BAC; Seymour is long INTC; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; Terranova is long IBM; Terranova is long AAPL; Terranova is long CF; Terranova is long AKAM; Terranova is long CNQ; Terranova is long AXP; Terranova is long MUB; Finerman owns AAPL; Finerman owns BAC; Finerman owns MSFT; Finerman owns GOOG; Finerman’s firm owns AAPL short calls; Finerman’s firm owns JPM; Finerman’s firm owns YHOO short calls; Finerman’s firm owns IBM short calls; Finerman’s firm owns MSFT; J. Najarian is long DB; J. Najarian is long CBOE; J. Najarian is long CME; J. Najarian is long CIGX; J. Najarian is long MDR; J. Najarian is long MSFT; J. Najarian is long AKAM call spreads; Stutland is short AAPL puts; Stutland is long MSFT corporate bonds; Stutland is short goog put spread; Stutland is short gld puts and long call spread; Stutland is short TLT puts; Stutland is long stock and short calls INTC; Stutland is long corporate Banking sector bonds

For Brian Kelly
Shelter Harbor Capital is long Gld
Shelter Harbor Capital is long SPY
Shelter Harbor Capital is long VLO
Shelter Harbor Capital is long NLY

For Brian Stutland
Stutland Equities is a market maker holding hedged positions in VIX and VXX underlying and options.
Stutland Equities holds positions hedged in SPX and SPY

For Bill Schmitz
Deutsche Bank (and/or affiliates) owns 1% or more of any class of common equity securities of AVP.

Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from AVP within the past year.

AVON has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.

For Karen Short
I, Karen Short, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months.

This issuer is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12 months: Non-Securities Related Services. BMO Capital Markets makes a market in this security.

For Irwin Simon
No disclosures

For Anthony catanach
No disclosures

For Stuart Hughes
No disclosures

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