ABS - Albertsons.
I recently bought ABS. On the bottom, I hope. Some under $34, but most near $40. Damn. Can't pick bottoms.
quote.yahoo.com
We gotta have groceries. Steady and predictable revenue and EPS is why I've read that the grocery stores typically command a premium PE multiple. Well, that premium is gone. ABS is trading at growth rate.
Some are concerned that super stores will take over the grocery side of things. The Wal-Mart fear. Other see internet groceries taking a significant bite of the groceries. The AMZN fear.
Wall street journal 11-8 had feature on internet groceries. Noted that WBVN expects sales of $11.9 million this year -- about what Kroger or Safeway achieve on a busy afternoon, says the journal. WBVN Mkt cap is now around 1/3 of KR or SWY!!!! Truely Amazing, eh? Well ABS has internet effort underway -- see below.
WSJ said WBVN expects $518 million revenue in 2001. KR has $50,000 million now (50 billion), and ABS has $37,000 million now. Go figure.
Anyway, I've salted away my cheap ABS for the duration. It will withstand any downturn.
The recent drop in ABS is attributed to the fact that ABS acquired Lucky Stores and just changed the name of all the Luckys in calif to Albertsons. Figure it will confuse and alienate the customers. I'll take my chances.
LOS ANGELES, Nov. 10 (Reuters) - Supermarket giant Albertson's Inc. (NYSE:ABS - news) said on Wednesday it plans to move into the online grocery business, which has so far been dominated by smaller start-ups, with a Web site and special Albertsons.com store in the Seattle area...The 31,000-square-foot center, an aging supermarket that has been remodeled, is about half the size of most modern Albertson's stores. Yet the company has high hopes that it will revolutionize the grocery business as consumers, particularly women, continue to flock to their computers to shop online....
biz.yahoo.com |
