SUPERVALU Inc. (SVU)
Interesting to see that JP Morgan initiated coverage on Kroger, Whole Foods and Safeway with a "neutral" rating. Supervalu gets an overweight rating.
From their press release: "...Supervalu Inc's turnaround strategies, including more discount stores and marketing autonomy for its stores, should help the third largest U.S. grocery-store chain, J.P. Morhan Securities said, initiating the stock with an "overweight" rating. Major supermarket chains are struggling with failing sales volumes as all but the top-earning shoppers remain very cautious about spending. Supervalu. which owns the Jewel-Osco, Albertsons and Save-A-Lot chains, has vowed to get its everyday pricing as low as larger peers Kroger Co. and Safeway..."
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"...Supervalu, which reported better than expected profit early this month, had said it would build fewer Save-A-Lot discount stores than planned because licensees were having difficulty obtaining loans..."
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Several insiders have been buying shares in August at prices between $6.87/share and $6.87/share.. Also, Mutual Fund FMR upped their holdings to over 6.3% with purchases last quarter.
FMR filed on 8/15/11 that they purchased an additional 8,086,460 shares and now own 13,384,274 shares or 6.3% of SVU's outstanding shares.
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I didn't realize that there were licensees involved in their Save-A-Lot stores but rather they were all company owned. This is the first time I have heard anything about troubled getting financing especially in the sector.
EKS |
