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SUPERVALU Inc. Message Board

  • cash_is_king_now cash_is_king_now Jan 23, 2013 10:54 AM Flag

    I listened to last CC again

    Although the company refuses to answer many questions but there were some positive points and encouraging in the CC. May be they wanted to keep long term investors instead of those who just want to ride the tender. When the deal is completed then they will release more info about new SVU.

    But, big boys are crunching numbers and see many value in new SVU.
    1- SVU is derisk with much better balance sheet.
    2- New experienced board and CEO will run the company.
    3- Besides $3.3 B price, $1.2B of pension will be removed from SVU liabilities.
    4- SVU will get tax benefit for many quarters from the losses after the deal.
    5- SVU refinces will better rates.
    6- (28%) Remaining banner stores are in much better shape.
    7- (25%) SAV-A_LOT stores can be expanded in other areas with much less money (Can compete with DLTR).
    8- (47%) Independant Business is high magin and very stable.
    9- SVU and Cerberus will be partner for new investments.
    10- $4 tender is just vote of confidence.l

    Sentiment: Strong Buy

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