Monday, June 9, 2014

Seeking Alpha: Competition And Momentum Reversal Hammer Natural Grocers

Owning a popular momentum stock can be a thrill ride, but if and when the company stumbles (and most growth companies do stumble at least once), the thrills turn to chills as investors stampede to the exit. Such is the case lately for Natural Grocers by Vitamin Cottage (NGVC) ("Natural Grocers"), where the shares have lost more than half of their value in less than three months.

While the drop at Natural Grocers has certainly been accelerated by a disappointing same-store sales figure for the fiscal second quarter, this has been a lousy stretch lately for comps and peers within the natural/organic food space like Whole Foods (WFM), Sprouts (SFM), and The Fresh Market (TFM). I think it's much too early to say that Natural Grocers is done as a growth concept, but it may take a while for institutions to come back to the segment.

Read the full article here:
Competition And Momentum Reversal Hammer Natural Grocers

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