However, I'm just afraid that Whole Foods doesn't really have that much of a moat. What's stopping Wal-Mart or the main chain stores from having organic food?

Then you also have competitors like Sprouts and Trader Joes, and any local mom and pop shops around town. The big chain around here in Portland, Oregon and its pretty much the Oregon version of Whole Foods.

All that being said, everything has a price and due to the drubbing WFM has been taking lately, its looking cheaper. Is trading at around 25 times earnings, which isn't bad for a growing company.

I would like to watch it for a few quarters and see how its margins are affected once the competition starts piling on. Wal Mart has already fired the first salvo by securing the Wild Oats brand and using their economy of scale to lock down a ridiculously low price for their products.