This message string references concerns about what would happen to Supervalu if the TSA went away. I still maintain that in the long run, it would have no impact other than some minor deleveraging of certain assets and technology, but at any rate for you doubters ... check the SEC filings today from SVU. The TSA has been extended a year longer to September 2016.
It looks to me that SVU's cap x spending on Jewel stores in the Chicago grocery market is going to reward shareholders nicely in the coming quarters. Jewel stores have been beautifully reconfigured unlike Mariano's attempt with the aquired Dominick's stores from Safeway which has fallen way short with the Chicago consumer. Jewel is also keeping product quality very high and pricing below that of rival Mariano's. Customer service is excellent and your associates appear happy to be showing up at work unlike the situation Mariano's is now facing. These positive changes are resulting in shopping carts at the registers being full with check out lines even growing longer however not in an obnoxious way but that of Jewel stores showing healthy growth. This shows to me that the consumer is doing their weekly shopping at Jewel stores. I have been short (RNDY) Mariano's and will continue to keep my short position on as I see this transition taking place in the Chicago market. I will be taking a long position in SVU on any weakness. I realize the time to have done this was 7 points ago however I feel SVU has a long way to run over time. Great job SVU on your remarkable turn around. Tom
Good that long term debt appears to be being reduced, unfortunately the bulk of the sales come from independent retailers who have not seen any improvement in their costs of doing business with SVU. The retail services and innovation that differentiated SVU in the past no longer exist in today's business model.
Still long and need to see improvement.
agreed the turnaround merits promise, but the balance sheet still needs work. still upsidedown,
but improving the equity. the plant/equipment depreciation is killing the assets and where is the
addition for rainbow, maybe just inventory? Also, I'm surprised they haven't jumped on the
"refi the debt train" yet, they still have $1Bil. in 8% and 6.75% loans due 2016 and 2021.
Maybe some work at home before they reinvest more for new problems?
street recognizes turn on SVU with Mgt. focusing on opportunities to grow top line, bottom line and market share, especially now that reduced debt has improved cash flow to reinvest in new growth opportunites!
Sentiment: Strong Buy
Kind of sad to see Shop n Save's decline. At one time they were unique but no longer.
Not sure what the franchise SAL stores are looking like these days.
Selling Save A Lot makes the most sense if someone is able to wrap their head around the fact that they would only be able to buy 25% of the stores. Farm Fresh could be a good buy for someone. While selling CUB would make sense it would only make sense if there is a long term supply agreement since CUB represents a large portion of the Hopkins distribution center sales. Shop n Save in St Louis operates in a tough retail landscape.
Was purchase for a sound and a hat.
It's not a big return but, was a steal for super valu. The main food warehouse located 12 miles away makes good business sense.
It all adds up!!!
I am upping my 3 years stock price to $20
Sentiment: Strong Buy
So Save A Lot had EBITDA of around $66 million last quarter. Annualize that and multiply by 8 or 9 (maybe even 10 at outside) and what do you get? Maybe $2.5 billion? Sure a great deal more than what was talked about when the Albertson's deal took place but maybe it is possible. Is that crazy?
Sure sounds crazy to me but that is the kind of number I'm thinking is conceivable based on the possible Grocery Outlet transaction. Just baffling. Obviously very speculative back-of-the-envelope sort of calculation. Wonder what SAL is carried at?
Folks might want to take a look at the Wall Street Journal and look for the article about Grocery Outlet Inc. I'm flabbergasted by the premium private equity is willing to pay in that deal. My guess is that this is good for Save A Lot but I suppose it is also conceivably bad if they expand in a big way.
A billion dollars for 200 stores? No way that makes sense unless you plan to significantly expand it.
Wholesale has declined because of 2 things. A loss of some military business and the loss of some very underachieving independents signing with other distributors for their "sweetheart" deal.
The loss of most of those independents is the result of owners trying to save their businesses through rebate programs. Owners are able to run their business as normal and stuff their wallet at the end of the year with their fat rebate.Ends up being a solid retirement plan for those that see their lifelong business sliding away to the competition. Not all business is worth having if a customer is struggling mightily to pay their weekly statement.
Not sure why all positive comments here are met with a pumper designation but I for one have done extremely well here. GLTA
Another pumper not taking into consideration that the wholesale business which is over 50% of the sales continues to decline and has done so for numerous quarters in a row! then toss in the fact that the twin cities will have a new competitor enter the market along with the continual growth of Target, WalMart, Trader Joes and Whole Foods. This story is far from over.
Just forget those the comments you may read, the stock is going much higher in three years.
Short are trying to cover, after that they need to go long!!!
Sentiment: Strong Buy
A lot of large companies no longer allow purchase of their stock inside of company sponsored 401k's. Don't know if that is the case here or not.