NEW YORK (TheStreet) -- TheStreet's Jim Cramer and Stephanie Link bought Whole Foods Market (WFM - Get Report) for their Action Alerts PLUS portfolio on April 8 but sold it on April 29 ahead of the company's quarterly earnings because they did not like what they were hearing and the way the stock was reacting.
Cramer says Whole Foods did not go up during its recent run, so Cramer and Link knew something was wrong. He points out management said on the earnings conference call it needs to reinvent the company, but investors do not seem to want to stick with the stock through such a period.
Link adds this latest report was the sixth disappointing one in the last seven quarters and notes confidence in Whole Foods' guidance has been shaken. She argues the guidance is actually "quite aggressive" given the company's need to be more price competitive.
Cramer says he is not ready to write off the company yet, but he notes that earnings cuts lead to multiple cuts and this stock has just begun a multiple shrinkage.