A company with USD30B in sales, 130,000 employees, with a quaterly profit, with 220 M USD operating cash flow has seen his market cap halved today. Why? Because it want to use cash to reduce its debt, insted of paying a dividend? As usual markets overreact, expect a bounce to USD 4 per share in the next few days.
In addition, RAD is a worse company and currently capitalizes twice as much as SVU. There is no way SVU is going to stay at these levels while still turning a profit and hundreds millions USD operating cash flow, in addition it is planning to reduce costs and improve performance. Finally the stock is massively oversold ftom a technical standpoint so it is going to rebound in the short term.