With Target now with a complete grocery section and pricing equal with Walmart, Supervalue will not survive much longer. Rising commodity prices are also thinning out their margins. With only $200 million cash and over $7 Billion in debt it looks as though ch-11 will be the only way out. No way they can turn around this business.
YOU ARE FOOLING YOURSELF! Target is not a big contender in groceries. SVU may have hit its bottom and may turn around big time. Grocery companies are unbelievably resilient a keep reinventing themselves; they survive and grow.
i am not to smart, but i know SV and where it is headed. i worked there 30 years before they laid me off. they have no plan for sales, they have cut as far as they can, the customers are suffering and going elsewhere. there is no way to grow, even SOL will not meet goals. the retail side is down the wholesale side is down, managment is poor. the debt will keep buyers away so it is bankrupt the only way they can save the comp, and that looks weak
Everyone needs to calm down. Supervalu is a hated stock in a hated sector at the time. Nothing more, nothing less. All this talk of bankruptcy is just something shorts say to try to scare you. Just stay calm and use this sell off as a buying opportunity.
Am I missing something? Sure, SVU is no growth stock. It's just muddling along. But in the last fiscal year it had 1.85 in earnings and the dividend payout was 33% of earnings. For the next few fiscal years, it appears that there may be little or no growth in earnings. But even if it makes 1.50 in earnings and never raises the dividend, it's a far cry from being bankrupt.