Whole Foods’ (WFM) Stock Soars Nearly 10% After Activist Stakeholder Announce Push to Sell
Activist investor Jana Partners LLC just disclosed a new 8.3% stake in Whole Foods Market, Inc. (WFM – Free Report) , and the news sent the grocery chain’s stock price skyrocketing on Monday.
Whole Foods’ stock closed up 9.98% to $34.17 per share on Monday. The company’s stock is also up marginally in after-hours trading, and the healthy grocery chain could be poised for even more gains as Jana Partners is reportedly looking to make some major changes.
Whole Foods stock jumps following news N.Y.C. investor has 9% share
Whole Foods Market stock shot up almost 10 percent on Monday following news that activist investor Jana Partners now has an 8.3 percent stake in the grocer and may be exploring a sale.
Whole Foods “shares are undervalued and represent an attractive investment opportunity,” according to Jana’s a regulatory filing Monday, per The Wall Street Journal. The New York-based hedge fund, now the second-largest shareholder of the grocery chain, plans to accelerate the grocery chain’s turnaround and explore a possible sale.
Whole Foods Jumps On Jana Stake As Private Equity Eyes Grocers
Shares of Whole Foods (WFM) spiked to their highest level since July after Jana Partners disclosed an 8.3% stake, reportedly with an eye toward pushing the upscale grocer to gauge interest from potential buyers, just weeks after Sprouts Farmers Market (SFM) became the subject of takeover talk.
In an SEC filing on Monday, Jana and others disclosing a stake said the shares were “undervalued and represent an attractive investment opportunity.” The disclosure also said that Jana and the others intended to hold discussions with management about Whole Foods’ “chronic underperformance for shareholders.”
Today’s Trading Lesson…
Planning Your Trades in Advance, Makes Trading Easier…
What if profitable trading was easy?
I know, I know… “He’s crazy, trading is hard…”
Well, let’s think about it. How do profitable algorithms produce consistent winning months? A computer simply follows a checklist of”if-then” scenarios and always makes the same decision.
What if you had the same type of checklist? Wouldn’t that make trading easier?
Imagine a custom-built guide that matches your resources, your experience and your goals, just perfectly? How would it feel to make the correct choice every time?
Picture an outline that helps you focus on your strengths and avoids low-probability conditions that don’t match your unique goals or risk tolerance.
How much easier would your trading be, with that checklist?
On the Tape Today | 4-11-17
BABA | Alibaba Group showing relative strength yesterday and traded into a solid "well-bid" breakout. With bullish order flow intact and the $108 breakout level cleared, today's game plan sets up a new swing trade long. Because of the fickle nature of the current market I plan to manage the trade off the first 30 minute breakout, as opposed to a simple buy-stop. Initial target to sell @ $117. Stop loss on a close below $110.
ROST Ross Stores offering a momentum pause with recent bearish order flow in place. Sticking with the trading plan of the day, looking to trade the breakdown of the first 30 minutes. Support appears at $61 but I like the order flow so expecting to push through the bids at that level. Setting a target to cover in the $59 area.
Tape Reading the SPY ETF
$SPY price action produces another melted candlestick, and another failure at new highs.
I should should say another epic failure at new highs. Epic in the sense that we never felt comfortable long. Traders in my coaching program are letting the first 30 minutes pass before looking for an entry.
That tactic isn’t by design, it’s simply a function of paying attention. Breakouts are failing.
While the stock market seems to drift, basic materials continue to shine this month. With twenty five stocks currently trading above the 50 sma and showing decent momentum, it’s worth a look to expand your scans to this sector.
It’s tempting to drop down to lower time frames to find a trend. If your normal time frame is the daily charts, don’t do it. You get short term opportunity, but when the stock market picks a direction again you will be programmed to book quick profits.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 4-11-17 | Tuesday Edition
Bullish Momentum: ESPR, MOMO, HES, SLCA, BABA
Bearish Momentum: nvda, incy
Long-Term Order Flow
Bullish Order Flow: ESPR, MOMO, TSLA, BABA, ETN, AMZN, RH, AMT, HCA, FB, LLY, ADBE, AAPL, CRM, SWKS, WDC, WYNN, CBS, CC, BIVV, DXC
Bearish Order Flow: MNK, TJX, FNSR, PANW, LB, ROST, AKAM, KMX, ALXN, LULU, CAR, FSLR,
2X Normal Volume: AKRX, MOMO, LULU, TROW
Inside Days: gm, fb, vz, abbv, csx, hal, mo, sbux, teva, wmb, luv, wba, crm, kmx, rio, aa, amtd, jnpr, nov, mar, cern, nue, nfx, lrcx
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