J.P. Morgan analysts came up with the crazy idea that Wal-Mart (WMT) would bid for Whole Foods Market (WFM) in an attempt to steal the organic grocer from Amazon (AMZN). Whole Foods agreed to a $42 offer from Amazon so Wal-Mart would need to offer a compelling sweetner to make Whole Foods move. The stock currently trades up at $43 as the market expects somebody else to bid with the more likely bidder being Kroger (KR). Either way, the deal doesn't make sense. For those that thought Amazon didn't fit with Whole Foods, Wal-Mart is an even bigger stretch. The more logical move is to purchase Sprouts Farmers Market (SFM) that is only worth $3 billion and fits more with the concept of low prices. The concept could fit in with the Neighborhood Market stores. Sprouts got hit by the Whole Foods deal, but the company seems even more valuable now that other grocery concepts need to compete with Amazon. The stock recently traded at $25 and likely makes another run to those levels from the current $21.50 level. Disclosure: No position