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Feed Your Portfolio With Whole Foods

It's got the vitamin of accelerated revenue growth and plans that will expand gross margins.
Author:

It's such a blast to buy and forget about it. You do all the research and then you are done. Unless, that is, you pay any attention to what has happened in the last five years in the market, which is that everything you could buy and hold, the

Coca-Colas

(KO) - Get Report

, the

Bristols

(BMY) - Get Report

, the

Mercks

(MRK) - Get Report

and the

Microsofts

(MSFT) - Get Report

, have done nothing, perhaps because of poor execution, changes in government rules, government investigations and, of course, lawsuits.

As I say in

Jim Cramer's Real Money: Sane Investing in an Insane World

, that's the reason you have to do

buy and homework.

Last night on "Mad Money," as part of my homework for recommending

Whole Foods

(WFMI)

, I was thrilled to speak by phone with Walter Robb, the dynamic co-president and chief operating officer of Whole Foods, who is helping this great company expand beyond its 175-store base.

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I first asked him about the copycat factor. In mainstream stores, I see more and more Whole Foods-like presentations and aisles. I thought he would fear the competition. Instead, he said it thrilled him, because it validated the concept. Excellent answer.

Then I asked him about saturation. He reminded me that 175 stores isn't exactly saturation, and that he could put up stores for many years, virtually double the selling base many times over, and not cannibalize.

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Then I said that lately, I have noticed at the excellent Whole Foods location where I shop a preponderance of Whole Foods-labeled products, which I take as a seal of approval. Yet, I was surprised to learn, only 15% of what is carried is Whole Foods' private label, and the company's going to double that in the next few years. Holy expanding gross margins!

Bottom line: If you are looking for ARG, the new mantra,

accelerated revenue growth, Whole Foods has it.

Nice job, Mr. Robb!

Oh, and needless to say, stay away from the

Krogers

(KR) - Get Report

and the

Safeways

(SWY)

, Whole Foods is coming to town!

Random musings:

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before

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS by

clicking here. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

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