I do not trust Roundy's one bit. I have personally seen how they operate. The last 10 years it has all been about GREED. So many good people let go. Kept a lot of the wrong ones, in my opinion. More to get crushed when this company tanks further. Darn shame. I have never met one person that brags about working for Roundy's. Going to be interesting to see the dance moves that Roundy's will be doing in the near future. Going public. Suckering investors with a huge dividend. Only to lead them to slaughter! Nice. Roundy's, I don't trust you as far as I could throw you.
It's not greed, they are going to war and needed to clear the dead wood. They also needed to remove the news leakers that have been tipping off the enemy. All that dead wood should of been cleared before going public but better late then never.
Look for them to announce a new IR person shortly.
As a candidate for the position myself, I felt rather materially misled by them. I wouldn't trust them, frankly, without going into detail. Suffice to say they said one thing while doing another.
But that does not make this a bad investment at current price.
McDs had a bad 3Q and similarly bad experience with their Monopoly game. In SE Wisconsin, Wal-Mart is moving in big time, and is eating their lunch.
The Mariano's concept works in Chicago, but the scale necessary to be a major contributor to net income is going to take years. Still, if those stores do North of $50m sales annually, that's a sustainable business model given the overall franchise is profitable.
Investors are going to have to get used to the idea that Pick-N-Saves are looking at -1 to -3 percent same store sales, but can still remain profitable for a decade.
Profitable companies are rare in this economy, and the 10+ percent dividend is now sustainable. Downside is mitigated by the lack of interest and demand in the stock despite co being profitable and cash generative.
Not at all......... Pump and dump on this P.O.S. stock. You let me know, you will have plenty of time to think about it when you are stuck in traffic as you drive down to your new office in Gurnee. Wait till Bob tells you what that parking is going to cost. Don't forget to set your alarm clock back a couple of hours.