I think the merchandise sales number is very good. It is a clear sign positive things are happening. The gas gallons per store increase is looking very steady yet the profit per gallon still is suspect. Hopefully these good sales numbers will translate into upward moving profits.
Bill, Thanks for the information. The numbers are quite extraordinary. With all the other top ten convenience stores owned by big oil companies, and the recent strong movement towards consolidation in the oil producing industry, I believe that the temptation to rapidly improve market share may make Southland an irresistable target---if the japanese owners are willing to sell. Bob
Bob, I like your speculation on SLCM being a possible target for an oil company. The only question I have is at what price do the Japanese owners part with Southland? They have invested alot of time and money to make this company sustain a profitable future. However, with all the economic troubles in Japan this might entice them to divest Southland at the right price. What would your guess be as to who might be interested in SLCM? I think somebody like an EXXON would pay a premium for the top store in the conveniece industry.
In response to Labrador (earlier posting). It is true that there is serious competition from gas station stores, but in my area, Northern California, most 7/11 are stand alone (no gas). All of the expansions I have seen are in high foot traffic areas, or near large apartment and condo projects where these is little competition. That is why they closed 2500 underperforming stores, to weed out those with too much competition. Also, my business has taken me to Hong Kong, Spain, and other international locations. I was surprised to find 7/11 stores packed in these countries, and from what I have read, they are bringing the concept of U.S. retail to more countries. In Spain, where most grocery stores close from 2-5 and close again at 8pm, 7/11 stores were the only game in town during those hours. I like the international expansion.
All things are looking positive, insider buying, investment articles have been written, and the company is really working on a turnaround. Let's face it, you see one of these stores without trying to hard to find.
I plan to make my first purchuse tomorrow, couldn't agree with you more. I just think it is time for this stock to make its come back in the market. I have been tracking it for some time. It has paid a long and heavy price for its early history, and policies. My only concern is just all the good news as of late and the insider buying. What does it really mean?