Supervalu's sales have been pressured by increased competition from dollar stores, drugstores and mass-market retailers such as Wal-Mart Stores Inc. ( Wal-Mart Stores, Inc.), which are expanding their grocery departments. The company also had warned it will invest this year in lower prices and improved fresh meat and produce departments, which may hurt margins.
I hope you are right.The reason I am bearish is the earnings have been terrible.If svu is such a great buy then someone would have bought them out for a very small premium to the stock price when it was trading around the $2.80 price.Caution to the longs at this price,because it rallied here only because of the $4 tender.
I have turned bearish on SVU. They GIVE money to failed leaders,can't stop downward trend in sales,no dividend and no buyers want them. I believe Cerberus stock purchase was a deal or no-deal offer by SVU. I also think Cerberus would like to sell the stock at break-even price and thus puts a cap on the stock at $4.00 for a very long time.
The stock market rallies leaving SVU behind.
Sentiment: Strong Sell
. It is a newly formed investment group "Symphony" and they will buy a maximum of 30% and a minimum of 19.9%
Could it be they never wanted to buy any shares ? Maybe SVU negotiated the purchase to complete the sale.SVU earnings are bad and getting worse. Who'd a thunk it ??
I think the purchase is to take place in March for the $4 stock purchase.They can purchase up to 30%. SVU wanted them to buy it all but was negotiated to 30% depending on price.If the price is over $4 they would purchase less. I am not sure if they are required to hold the stock for a set amount of time,or if they can sell the shares immediately.