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SUPERVALU Inc. Message Board

  • sellthenewsbuytherumor sellthenewsbuytherumor Jun 16, 2010 11:24 AM Flag

    VOLATILE

    this one has been all over the map today form up over 1% to down 2% representing a 300 basis point swing form the high to the low.

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    • Jan. 4, 2011, 10:00 a.m. EST
      Supervalu (SVU) shares hammered by downgrades. “Morgan Stanley cut Supervalu to "underweight."”. Supervalu down – 9.56 % this morning (SVU 8.69, -0.81, -9.56%). Grocery Stocks Tumble on Downgrade. Borders, Safeway and Supervalu defy sector gains.
      Wow down from $50 in last five years, down from $17.89 in last year. SVU stock can leap up or plummet 10% in one day.
      topic: Re: VOLATILE 16-Jun-10 howsueczit
      “Supervalu SVU vs SHLD , SVU vs WMT , SVU vs TGT , SVU vs KR , SVU vs SWY , SVU vs COST , SVU vs Aldi
      As I said before, I now consider Supervalu SVU a speculative stock, so I see the stock bouncing around based on rumors of: selling of the corporation, bankruptcy, banner sales, lawsuits, and other elements. SVU stock is Great for day traders, but bad for a long-term investment.
      But Supervalu is clearly heading downward over the long term. SVU stock has dropped over 30% over the last 2 months”
      Topic: Re: No value left in Supervalu 1-Dec-10 10:11 am …
      “.Supervalu is now just a speculative stock, day trader stock, penny stock. Lots of money to be made for day traders with SVU extreme volatility. SVU is high risk high reward. SVU makes big jumps and has big dips based on rumors. But for long term investors this SVU stock looks like trouble. Remember recently the stock jumped to $17.89 based on rumors and quickly dropped to $8.62 (near 25 year low) when the rumors proved to be false. If a buyout does not happen in the next few days, the stock will drop. No one will believe the false buyout rumors anymore. And when Supervalu reports more bad results next quarter, SVU will drop like a rock to historic lows. Wal-Mart & Target had a great Thanksgiving week, while Supervalu SVU had a disastrous Thanksgiving week.”
      Topic: Re: Sales Declines Bankruptcy 4-Jan-11 cohsgrad
      “So a combination of reduced product selection and higher prices when compared to peers. Now reversing practice of higher prices.
      At least it will get same store sales growing again. Will have to see if it kills gross profit. If margins decline they will have debt covenant problems, if they hold up shareholders will be happy.
      Not a bet I'm willing to make. “
      Topic: Bankruptcy 4-Jan-11 09:44 am cohsgrad
      “Just to remind everyone, if margins continue to decline they will violate debt covenants and bankruptcy could follow.
      I have no idea if that will happen but it is important to recognize that bottom line profits have been holding up as a result of significant cuts to SG&A. They cannot cut forever and bankruptcy is possible.
      If you can accept the possibility of losing your investment feel free to buy shares. If you are positive it won't happen you don't know what you are talking about and shouldn't buy. “

    • That’s How Sue Cz It
      IMHO

      No One will buy Supervalu SVU now

      Supervalu will never be bought out as a whole.
      They will have to sell the business piece by piece. This will be great for the employees, and the customers. The banners will be better with good management.
      Supervalu’s stock price was $9 in November of 2008 and no body would touch it, due to all the issues Supervalu has. Since then, more major issues have arisen and no one wants to buy a company in this bad of shape. No one wants to take on Supervalu’s $8 billion debt, or its wholesale buisness. With the Wal-Mart and Target price war in grocery, the overcapacity of Grocery stores, and the overcapacity of retail real estate, no one wants Supervalu as a whole.
      Most people have already caught on to Supervalu’s “One-Time-Cost” that seem to occur every year. Many would see these costs as an ongoing cost of business.
      Supervalu SVU racketeering, anti-trust, and fraud charges in a lawsuit in federal court in Chicago. Looks like a Government investigation of Supervalu SVU could be coming soon. As Supervalue management has been making themselves rich while the company sinks, you know the Press will be all over it. Add a Governor, U.S. Senator, and Religious groups calling Supervalu unethical, this could be a major National story. No one wants to buy a company with these troubles.

      This is all Supervalu management fault. The condition that the SVU is in: $8 bil. Debt., “$5.2 Bil of intangibles and goodwill on the balance sheet”, rapidly dropping revenue, dropping profits, dropping same store sales, dropping customer visits, market share destroyed, store brands ruined, Supervalu had a Same Store Sales loss of 7% last quarter (in comparison to a very weak previous year’s qtr.) , they cannot afford to lose any more customers or market share, Wal-Mart & Target destroying SVU retail with a price war (Wal-Mart smells blood and will not stop until they destroy Supervalu, and SVU management is doing their best to make sure Wal-Mart destroys Supervalu), SVU Wholesale customers leaving, Target become more self distributing and leaving SVU Wholesale, low employee morale, terrible management..

      I could go on and on with all the reasons no one will buy Supervalu as a whole. And there are great risks to shareholders if Supervalu goes into bankruptcy.

      And That’s How Sue Cz It
      Supervalu SVU vs SHLD , SVU vs WMT , SVU vs TGT , SVU vs KR , SVU vs SWY , SVU vs COST , SVU vs Aldi

    • That’s How Sue Cz It
      IMHO

      High Expectations now set for Supervalu SVU. Supervalu stock went up over 6% today on the good results reported from Kroger, which sent all Supermarkets stocks up. Clearly, investors are thinking all Grocers should be having good results in this environment.

      Supervalu now has to report a big increase in Same Store Sales next quarter. Which should be easy since they are comparing to a very bad quarter last year.
      Also they need to report a big increase in overall sales.
      And the need to report a very profitable quarter.

      Kroger's Strong Earnings Feed A Rally For Grocers
      Carl Gutierrez, 06.17.10, 10:15 AM EDT Forbes
      “Sector moves up after solid report, but competition with Wal-Mart lurks as a concern.. Sales during the grocery chain's first quarter rose 8.7% to $24.8 billion, from $22.8 billion. Excluding revenue from fuel, sales grew 3.1%, while same-store sales, excluding fuel, increased by 2.4%”
      “Kroger maintained its same-store sales growth outlook, excluding fuel, of 2% to 3% for the year”

      LOS ANGELES (Reuters) 6/17/2010 – “Kroger Co (NYSE:KR - News) posted higher-than-expected quarterly earnings on Thursday, suggesting it was holding its own amid heated competition from Wal-Mart Stores Inc (NYSE:WMT - News) and other grocery stores.”

      As I said before, I now consider Supervalu SVU a speculative stock, so I see the stock bouncing around based on rumors of: selling of the corporation, bankruptcy, banner sales, lawsuits, and other elements. Supervalue SVU stock is Great for day traders, but bad for a long-term investment.
      Any ideas of how Supervalu’s next quarter results will look? How high will SVU stock rise or drop after next quarters results? Will it rise, or have a dramatic drop like the 30% drop after last quarter’s results?

      And That’s How Sue Cz It

      Supervalu SVU vs SHLD , SVU vs WMT , SVU vs TGT , SVU vs KR , SVU vs SWY , SVU vs COST , SVU vs Aldi

    • That’s How Sue Cz It
      IMHO

      Great comments from: Storewanderer3

      “Re: Target joining Wal- Mart in war with Supervalu SVU Storewanderer3
      “If you've been in any of the SVU Stores you would know they are in no price war with the discounters. Hardly. Their prices are higher than anyone. They may be in a price war with convenience stores but nobody else.
      All those Equaline items from China (stuff that should be 1.00) selling at 2.00 and 3.00 is also an interesting strategy. Same high price as the old items made in the USA were (comparable to the identical private labels at KR, SWY, CVS, WAG, RAD) yet a much lower cost due to being made in China. Way to run the once strong Albertsons Drug Program into the ground. Hand sanitizer from China? Really? “
      Another post by Storewanderer3 “This stock got pushed down pretty heavily. They need to run things better and get a more clear, realistic strategy going. Lots of good assets here, just ongoing issues with performance due to poor strategy.””

      Storewanderer3 you are totally right. Unfortunately, the top Executives at Supervalu corporate do not get it. They started a price war with Wal-Mart a couple of years ago, thinking if they could cut enough employees and expenses that they would be competitive. But being the idiots that they are, they did not realize that every time they would drop their prices to get close to Wal-Mart, Wal-Mart would lower their prices in response. Now their prices at their retail banners are significantly higher than most everyone. But the top management at Supervalu has still not caught on to the reality of the situation. Although they had a 7% Same Store Sales decrease last quarter, they thought their strategy was working. They based this on their so-called excellent analysis, and their consumer satisfaction stores that they said showed Supervalu customers thought they had the best prices, best service, and best quality goods. Executive management’s disconnect with reality borders on the insane.
      To make matters worse they now have a strategy of making more cuts, and having promotions and advertising saying they cut the prices on thousands of items. The promotions and advertising may bring a customer to the store, but once they see that Supervalu’s prices on their special promotions are much higher than everyday prices at other stores, the customers never come back.
      This management is so bad they even killed Save-A-Lot. Wal-Mart stores can now can wipe out any Sav-A-Lot store within miles. Sad to see Save-A-Lot, which formerly killed Wal-Mart, now being destroyed by Wal-Mart, Target, and Aldi. At the same time, Aldi is thriving.

      And That’s How Sue Cz It

      Supervalu SVU vs SHLD , SVU vs WMT , SVU vs TGT , SVU vs KR , SVU vs SWY , SVU vs COST , SVU vs Aldi

    • Target joining Wal- Mart in war with Supervalu SVU

      That’s How Sue Cz It
      IMHO

      Target joining Wal- Mart in the war with Supervalu. Both are adding Groceries and using Food as a loss leader, to get customers to buy their higher margin items. When Supervalu’s profit generator (Groceries), is Wal-Mart and Target loss leaders, Supervalu is doomed.
      Target has been adding Groceries in their Minneapolis / St. Paul, Minnesota stores for the last couple of years and destroying Supervalu’s Cub stores. As this market is the Corporate home of both Supervalu and Target, this war will not end until Target wipes out Supervalu.
      It is all very sad. It is all Supervalu management fault. A few years ago, Supervalu management came up Suicidal strategy of starting a price war with Wal-Mart. Then a couple of years ago, they made sure everyone knew that they were in a price war with
      Wal-Mart.
      All Supervalu’s management know how to do is cut cut cut, cut employees, cut expenses, cut everything. They thought if they cut enough they could compete with Wal-Mart on price. Now they have ruined all their Retail store banners, and all the banners branding. Supervalu has no positive differentiation in groceries from Wal-Mart. And customers have no reason to shop Supervalu’s stores.
      The employees of Supervalu know how to run the company profitably, but SVU management will not listen.
      With all this cutting, Supervalu management somehow has money to give themselves (the executives only) tens of millions of dollars in bonuses, while customers, employees, and stockholders suffer.
      No Supervalu in Supervalu.

      And That’s How Sue Cz It


      smartmoney.com
      Published June 17, 2010
      “More bad news for the local grocer: Target is going the way of Wal-Mart by stuffing supermarkets into more than 300 of its stores. That follows a test of the program in Philadelphia that analysts say must have been plenty successful to convince the company to quickly renovate nearly one-fifth of its chain. Supermarkets aren't terribly profitable; the average chain turned just three cents of each sales dollar into operating profit over the past year, versus seven cents for Target. Then again, Target's approach involves using space it already pays for, so incremental sales could be plenty profitable. Analysts over the past three months have raised their earnings forecasts for Target's fiscal year ending January 2012 from $4.24 a share to $4.43 a share. “

      Supervalu SVU vs SHLD , SVU vs WMT , SVU vs TGT , SVU vs KR , SVU vs SWY , SVU vs COST , SVU vs Aldi

    • That’s How Sue Cz It
      IMHO

      Supervalu SVU stock is down over 2% at close today. While the Dow, S&P and NASDAQ basically stay unchanged today.

      And this a day after SVU was upgraded to five stars (out of five) on Motley Fool.

      This shows you how the investment community feels about Supervalu stock. Supervalu is no Supervalue. Down over 30% in 2 months. Ouch.

      Supervalu SVU is now a speculative stock, great for day traders, but bad for everyone else.
      Supervalu is now Very volatile, with up and downs based on rumors and speculation
      A very sad situation for a company that previously was a value stock, and a value company for over 100 years.

      As seen on this message board, the employees of Supervalu are hoping they go bankrupt, so new management can be brought in to make SVU competitive again. Or employees hope their retail banners are sold to a company with good management, which will make them competitive again.

      And That’s How Sue Cz It

      Supervalu SVU vs SHLD , SVU vs WMT , SVU vs TGT , SVU vs KR , SVU vs SWY , SVU vs COST , SVU vs Aldi

    • That’s How Sue Cz It
      IMHO

      Supervalu SVU vs SHLD , SVU vs WMT , SVU vs TGT , SVU vs KR , SVU vs SWY , SVU vs COST , SVU vs Aldi

      As I said before, I now consider Supervalu SVU a speculative stock, so I see the stock bouncing around based on rumors of: selling of the corporation, bankruptcy, banner sales, lawsuits, and other elements. SVU stock is Great for day traders, but bad for a long-term investment.
      But Supervalu is clearly heading downward over the long term. SVU stock has dropped over 30% over the last 2 months.

      This is all Supervalu management fault. The employees know how to turn the company around but the executives will not listen to them. They just cut, cut, cut, and lose more and more customers. While that may help the net profit percentage look better for a quarter or two, (while actual net profit dollars will be dropping), in the long run the financials are going to be a disaster. A company with $8 billion dollars of debt cannot survive going down this road. And we are all becoming aware of the “One time cost”, write-offs, and other tricks to make the company look better than it really is.
      No one will buy Supervalu now. The condition that the SVU is in: $8 bil. Debt., “$5.2 Bil of intangibles and goodwill on the balance sheet”, rapidly dropping revenue, dropping profits, dropping same store sales, dropping customer visits, market share destroyed, store brands ruined, Supervalu had a Same Store Sales loss of 7% last quarter (in comparison to a very weak previous year’s qtr.) , they cannot afford to lose any more customers or market share, Wal-Mart & Target destroying SVU retail with a price war (Wal-Mart smells blood and will not stop until they destroy Supervalu, and SVU management is doing their best to make sure Wal-Mart destroys Supervalu), SVU Wholesale customers leaving, Target become more self distributing and leaving SVU Wholesale, low employee morale, terrible management.

      Nothing I have seen that talks about bankruptcy had a timetable. It takes a long time for a company of this size to go bankrupt. Supervalu has been heading down this road for a long time with its current management and their suicidal strategies. However, when most companies finally do declare bankruptcy, they do so very quickly, so it makes it hard to predict exactly when a company will go bankrupt.

      No Supervalue at SVU. No one will buy Supervalu in the condition that it is in now, and no bank will give them money for a LBO. Supervalu has ruined their store banners with all their cuts, which greatly decreases their value.

      Supervalu SVU is now a speculative stock, great for day traders, but bad for everyone else.

      And That’s How Sue Cz It

 
SVU
11.37+0.15(+1.34%)Mar 27 4:02 PMEDT