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Nash-Finch ┼×irketi Message Board

  • geeno12 geeno12 Apr 1, 1999 6:45 AM Flag

    Unions and Groceries

    Unions are losing their presence in the Grocery
    Look at what Kroger is doing: Central proccessing
    their meats,
    Turning transportation over to outside
    third parties that use nonunion labor, and their
    warehouses over to management groups.

    Wal-Mart is
    fast becoming the number one grocery seller in the

    All companies that compete with the Chains and Mega
    Retailers must become leaner to survive.
    The wholesale
    delivery system adds COSTS to product at the retail level.
    Storing, moving, accounting and financing of inventory are
    prime targets for cuts and reductions, they always have
    Just look around at what the Industry is doing to cut
    costs and the idea that Nash is Anti-Union may be
    wrong, they are just trying to survive the
    nightrider- I agree with some of your thoughts, but I must
    point out the one phrase that overshadows your others,

    "perhaps they should go out of business"!
    statement shows that you are more loyal to your trade union
    than your company and this attitude is the very reason
    that companies fight unions!

    I live in a strong
    union area, I am a past member of the UMWA, and worked
    in and managed a union shop. I think the stucture
    that unions bring to the work force can be beneficial
    for companies and employees, but this industry is no
    longer able to financially support increasing labor
    costs, without productivity increases. If you or your
    union can provide productivity gains, then you stand a
    chance to make it in the ultra-competitive future, if
    not, then your trade union card has an expiration date
    on it.

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      Yes I used to post as storewanderer.

    • that Walmart would purchase Nash but a merger
      with another larger company is always likely. And
      remember the positives which is the stock is still above 2
      ( so why the complaining?) so we are very much
      still in the game and a bad quarter or 2 can happen to
      any company. And new programs and new management we
      can find the wayout!

    • food4who,

      Wise musings you are
      With the Kmart deal done with fleming, the logical
      course of action would be a merger.

      operations would be a fit together to compete against
      However, could walMart be watching all of this with
      Would little ol' nash Finch fit the WalMart master plan
      for the Midwest?

      Stay tuned for more!

    • SWY bought Randalls in TX - They are a MAJOR
      RETAILER not wholesaler! Comparing NAFC to Randalls is
      like comparing apples to elephants.
      Did anyone look
      closely at 2nd quarter numbers? I heard they contained
      some one time gains in excess of $1 million, so things
      really were worse than they appear. Can anyone verify

    • this past week of the food wholesaler in Texas
      went out at approximately 0.8X sales. That was how the
      deal was valued. I am speculating but it seems likely
      that NAFC as a regional player would make sense as an
      acquisition for any larger player that wants to dominate the
      upper midwest and can achieve the efficiencies that
      would come from such a merger. I don't know what
      special factors drove the pricing of the Safeway
      purchase, but if you use the 0.8X sales multiple as a model
      for the possible pricing of a NAFC purchase you come
      up with a winning position given the stock is now in
      the 9.5 range.

      It is unlikely that the math
      will work out that well given almost $4 Billion in
      sales and a market cap that is about $110 million. It
      is plausible that as new management is able to
      report better numbers and put "the bad stuff" behind
      them, that NAFC will be scooped up. As for the person
      who was concerned about the bad Q2 numbers, not to
      worry. There is only one analyst following the stock.
      He/she was expecting $0.31/share and didn't get it but
      that isn't a big deal now. It is assumed that
      management is in a rebuilding phase. The Street gives some
      grace to such a time period. You can't report lousy
      numbers forever. Thus, it is often best to take a couple
      of quarters, make the tough decisions to restructure
      and get all of the "bad" news out that you can.

      As for the stock moving with the bad Q2 report, I
      think it unlikely. Anyone who has been inclined to sell
      the stock over the past year has already done so.
      With little selling pressure -the stock is likely to
      drift until the nubmers start to shape up and the
      market takes notice of that. The other factor that will
      up the price will be the expectation of industry
      consolidation and the fact that NAFC could be a prime
      acquisition target.

    • I am certain the decline is still reflecting loss
      of Grand Island business and several other wholesale
      closings where business was not transfered to an existing

      As predicted earlier, FLM and NAFC -- starting to
      look more and more like that puzzle fits.

      all told me how stupid I was when I brought that up
      when both stocks were around 7. It is still alive and
      is actually starting to make sense for both parties.

    • I don't think Ron ever worked at KM, but Art K
      did. Still, its too bad NAFC didn't get some of that
      huge KM pie, especially considering the MI
      I expect we will see some downward pressure on the
      stock price next week as the weak 2nd quarter results
      hits the trade press.
      Does anyone know why the 8-9%
      decline in wholesale sales?

    • Get REAL!! The Super Valu and Fleming pretty much spells
      doom for Nash's future. Your being squeezed out and you
      should be smart enough to figure that out! ODD MAN OUT!

    • When Ron said he was going to get the stock up to
      $40.00 a share in two years, you would think that he had
      a great plan to get it there. Like getting some
      real good new business, "K-Mart", since all of them
      had originaly worked there.

      They would have
      known that K-Mart would be looking for a grocery

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