They have lowered the bar on earnings so a upside of 6 or 7
cents is not out of reach....est. 24...good weather may have
increased traffic flow....any thoughts!
The dramatic SVU stock price down turn has me thinking that earnings may only be 24 or 25 cents. Which could cause a capitulation sell off. I'm going to hold my shares and double down if SVU trades down in the $4 range.
Trading action is saying something is coming down the pipeline and it doesn't look like it is good news. Funny how stocks like SVU trade like this with little or no news. Somebody on the street knows something.
The layoffs are suppose to save 35 million a year. I never did hear about any charges associated wit hthe layoffs. I am sure there had to be something. Earnings and forward guidance will be what everybody is watching.
If sales, earnings, and the outlook are decent I predict a HUGE SHORT SQUEEZE. I could see a 40-50% gain in one or two days, maybe more if all the cockroaches run for cover at once.
My only concern at this point would be a one time charge or liability of some kind. If sales disappoint management should be fired in my opinion. They have a tailwind of about 3.6% food inflation since the same QTR last year. Interest expense will be less than the comparable quarter as well to help earnings.
Sales were 8.66 billion Feb 11 QTR and the current average estimate is for 8.3 billion. Last year earnings were .44 and this year .36.
It is kind of odd that there are no insider purchases which is a possible red flag....but I'm trying not to read into this as I don't know when the black out period is.
We will know in a couple of weeks.
Beyond the operational side, they will again have a one time charge for the layoff of 600-800 employees. Wonder what that number will be and how management explains/spins it. Have felt they have not effectively explained the writedowns in the past and hope they do a better job this time.
Unemployment insurance should be provided....reduction in payroll expense should add to bottom line...never nice to
see people get laid off...that's technology for you...good
for business...bad for people.....
The quarter ended Feb 28, Christmas sales have more to do with the numbers than the weather in March. My advice is to know the basic calendar of events with your investments, it may lead to prudent choices.
Good points. I got in at $6.20 after I thought this was making a run into earnings. Ended up averaging down to $6 and am underwater already.
Lots of value here however. They are trading as if they are bankrupt, which they clearly are not.
Remember that given the enormous revenues, even a slight positive change in metrics can lead to a huge beat.
Last time I owed this it was from about $7 to $11, very quick move. I'm expecting something similar next week.