Thursday, August 25, 2011
30- and 60-Minute Charts Suggest SVU Pop is Imminent
SSIA. Finally had Silverlight installed. Ran the numbers prior to that... I suspect it could be a private equity takeout candidate. Debt load is no worse than Kroger's, with more cash per share (a whopping dime) than either Kroger or Safeway. SVU trading at approx 0.75x EBIDTA vs. peers trading at 2.5-3.5x EBIDTA. If someone can work out the margins they shoud realize a hefty profit in relatively short order. Just a guess.
Tuesday, August 09, 2011
SuperValu pops back above key level
When I started accumulating SVU prior to the latest collapse, I was prepared to watch it test the bottom again at $7.06. I admit I was disheartened to see it drop like a rock through that level. However, it bottomed at $6.68 both yesterday and today before rocketing back up through the $7.06 level to close at $7.14 today. Now it only yields 4.9% as a $1.5B company generating $37B in revenues. And if I remember correctly, it had $3.5B in inventory to end the latest quarter. Not obsolete microchips mind you, but food stuffs. I contend that in an economy like this, their business means much more to a lot more folks than gold itself.
Opportunity in PAY, OPEN
A quick glance at a long term chart for either shows this pullback could be a great entry for a couple of high fliers.. LULU looks similar but more iffy. Continue to be intrigued by UL.
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