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Strategies & Market Trends : Value Investing

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From: E_K_S4/20/2006 3:37:01 PM
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Took a starter position at $29.00 in SUPERVALU Inc. (SVU). It's not an extreme value play but they are selling at 14 PE, pay a 2.2% dividend and have good positive free flow cash flow.

They are the beneficiary of the ABS (Albertson) asset sale and as a result will cherry pick the best properties to fold into their organization. I am also interested in adding a defensive stock to my portfolio and the grocery business works good during both good and bad times.

I am expecting slow growth and a steady dividend. Stock could be a double in 5-7 years if management can generate the additional revenue and earnings from their new asset purchase to better reflect their true value.

EKS
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