astral tsar: I looked at the Winn Dixie financial statements that I could find on Yahoo. The latest balance sheet I could find was June, 2004. Of course, a lot has happened since then. They reported losses and write-offs of about $550,000,000 since then. Isn't it amusing how the carried goodwill and intangibles of about $90,000,000 on their balance sheet right up to the date they filed for bankruptcy? I believe "goodwill" should represent the excess earning power of your business not how much you overpaid when you bought a business.
In addition, if Winn Dixie is forced to close more stores, they will probably have additional losses on leases, inventory severance etc. Then comes the hard part, they have to compete with an expanding WalMart.
Therefore, my guess is that Winn Dixie disappears sooner or later and I am not interested. It could come out of bankruptcy as a smaller company and then merge with somebody else.
I was interested that you brought up Winn Dixie because I have recently become somewhat interested in Albertsons. I have not bought any yet and may not. Most grocery chains pay very little in dividends if any. Most don't have much tangible book value. They face growing competition from WalMart and there are too many stores.
I think Albertsons is a cut above the others in terms of book value and dividends and I use and like their stores.
That said, the food business is very competitive and the stock market does not look good to me now. Nevertheless, ABS is making new lows and yielding about 4%. I intend to keep my eye on it.