3 Stocks That Should Move Significantly Higher Soon

Fairway Group Holdings Corp. (FWM). Fairway Group Holdings Corp., together with its subsidiaries, operates as a food retailer. The company provides perishable products, including fresh produce, such as fruits and vegetables; natural and organic foods; cheese; cut meat and chicken products, and a whole raft of other various foods.

In September of 2014, the company named Jack Murphy as its new Chief Executive Officer (CEO) Mr. Murphy was a co-founder of natural foods grocer Fresh Fields, Inc. before it was sold to Whole Foods (WFM), Inc., and most recently he served as Chief Executive Officer of Earth Fare, Inc., an organics and natural food chain with locations in the Southeast and Midwest.

One of our sources contacted us about this company after hearing some buzz that Whole Foods may be interested in acquiring the company. Murphy has a strong history as a turn-around CEO that cleans up, leans down, and then sells companies. Fairway has 14 stores in The New York City area, but Whole foods only has 3. For Whole Foods to go out and actually lease and/or buy property to gain a presence in such a large market would not be cost effective.

Fairway’s current market cap is around $170M, so for a modest and fair premium, Whole foods can acquire Fairway’s outlets to gain a presence in the huge NYC market for a cost that is much more company friendly then what we mention above. Considering Murphy’s relations with Whole Foods and the obvious synergy here, we feel strongly that the rumors we are hearing will turn out to be true, and Whole Foods will acquire Fairway sometime this year for around $300M.

Additionally, Fairway has a large short interest from its past hardships before it hired Murphy as the new CEO. We strongly feel this one could see a big short squeeze as traders and investors do some deeper due diligence on this one.

Identiv (INVE). We have extensively covered Identiv over the last few months and know its story very well, but the overall market has not yet caught on to this one. Up until just about 2 weeks ago, the company was handling investor relations (IR) internally due the fact that the new management team had to ‘lean down’ the company and save it from insolvency back in late 2013. The company now has hired SVC, a well-known and top IR firm.

1 2 3 4
View single page >> |

Disclosure: Long INVE, SGYP. Considering a position in FWM.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.