Tuna, possibly, but everybody gets nervous when a CEO or CFO leaves. In this case there may be a reason. I found this --- (of course at some point it will bounce). Somebody should buy them out, that's the best answer as the article says.
"Pathmark, Husson noted, is not geographically diversified with its stores located within a 100-mile radius of the company's New Jersey headquarters. "All (its) eggs (are) in one unstable basket," he said.
The New York/New Jersey area, Husson indicated, is uniquely vulnerable to sustained price wars because the region is one of the most fragmented in the U.S. and no single retailer is able to exert leadership and discipline in pricing. "It's hard to see how this pricing environment can improve now that everyone appears to have joined in the skirmish," Husson said.
Given the grim outlook, he also lowered his earnings estimates to 66 cents from 70 cents for 2002 and to 82 cents from 91 cents for 2003.
Still, Husson says he's not moving to a "sell" on the stock because of the company's status as a potential takeover target, indicating hopes that management might "become depressed enough" to entertain a bid in the current environment.
"We believe Pathmark would fit nicely into a grand northeastern strategy for one of the national players," he said. "When that would actually take place is hard to say and we would not want to be short the stock when the bid came in." |
