my opinion: Sell SVU Avoid SVU prepare for the Death Spiral lower
Lorraine, the reason I don't post anymore is that I sold. Jumped ship to avoid what I believe will be the ultimate fate of Supervalu and that is Bankruptcy. And you will probably start to see the old dreaded stock price death spiral beginning the following week after the conference call.
I think Wayne Sales is way over his head. And I hear all levels of management have been jumping ship. Bottom line, the disastrous Albertsons purchase has finally done them in.
I see the next trading levels of $1.25 to $1.50 as they try to pacify shareholders and keep from saying the "B" (Bankruptcy) word.
One of my most admired business analyst told me that "Supervalu just doesn't have any resources really to turn its operations around."
The fact remains that shareholders are left in the dark and that it is well known in tight circles that the declines Supervalu is now facing are so steep that shareholders won't be hit with the truth until they hit the cliff and go over it. Then the fact that they will probably have to file for bankruptcy will get shareholders attention again.
I don't think we will be reading an obituary on Supervalu, but I think that a Bankruptcy filing will restructure the business in such a way as we will not recognize what is spun out of it.
And of course, current shareholders will be left holding the worthless stock bag.
“Supervalu was a great wholesaler that always wanted to be a retailer, and they went on this whole thing with acquisitions—Albertson’s, Jewel, Acme and all these other markets—and I don’t think they ever had the expertise necessary to run retail centers,” Hence, they destroyed shareholder value with that one massive retail purchase. Now shareholders are left wondering why Wayne Sales is in charge!
Expect a pretty bleak overall picture next Thursday.
You sold all of your shares and for whatever reason, you post a huge thread about this and that. In all of my years of trading, never once have I posted anything about a stock that I was no longer invested in.. I move on to the next and continue to do my research.