3 Quick Ideas: Best Buy, Volkswagen, and Whole Foods

By: SumZero Staff | Published: December 17, 2013 | Be the First to Comment

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Volkswagen Facebook

Quick Idea #1
Long on Volkswagen Ag (VOW:GR)
Contributor: Nick Poling, Volsung Management.
Current Price: $186.15.
Target Price: $215.00.
Expected Return: 15.5%.
Timeframe: 2+ years.
Elevator Pitch: Best-in-class, investing at a level peers cannot match. Deserves to trade at premium to peers. MB program is a free option offering potentially huge earnings leverage. Corporate governance concerns misguided.

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Quick Idea #2
Short on Best Buy Co Inc (BBY:US)
Contributor: Todd Senick, Formerly at Williams Financial Group.
Current Price: $41.73.
Target Price: $30.00.
Expected Return: 28%.
Timeframe: 3-6 months.
Elevator Pitch: Trading at a 10 year high with deteriorating fundamentals. Margin pressure will persist through the next several quarters. Stiff competition from the internet electronic retailers.

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Quick Idea #3
Long Whole Foods Market Inc (WFM:US).
Contributor: Michael Czekaj, Broadleaf Partners, LLC.
Current Price: $57.31.
Target Price: $72.00.
Expected Return: 22%.
Timeframe: 2+ years.
Elevator Pitch: Play on growth in organic diets. Still tons of room to grow domestically with further international growth down the road as well.

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