SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Suma who wrote (20860)3/11/2005 7:26:31 PM
From: E_K_S  Read Replies (2) of 78464
 
For an undervalue play with a company that has a lot of potential, I am buying ABS (Albertsons). They own the Sav-On and Osco Drug stores. They recently announced that their Shaw's division will implement the "Store w/in a Store" and build more Osco Drug stores in their Shaw's stores. The company is in a four year restructuring with a lot of potential but have had their problems (mainly with labor contracts which now have been resolved).

They pay a good dividend while you wait for them to get their stores profitable. They have a franchise in their drug stores which I believe they have not really structured to complement their grocery operation.

If you are looking for a value play with low risk, this is the company you want to speculate on. It may be another 24 months before earnings begin to grow. A lot depends how management differentiate their businesses with high end stores Vs specialty stores.

Management has a long term plan and have been quite successful in negotiating new labor contracts. It's not a slam dunk as Costco, Target and Walmart provide similar cost effective services.

ABS has a better Internet presence and if integrated with their local facilities (especially their pharmacy division), I think they can be very competitive. I like their plan to expand into the sunbelt states (Phoenix, Nevada etc.) where many of the baby boomers plan to retire and will need their drugs.

I have been wrong many times but have established a large position in this company at prices below $20. My target (if management can fully implement their changes) is $40/share in 36 to 48 months.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News