Added to SVU yesterday @$16.36. (Why do you and I keep following each other at the same time into into so many stocks? -g- )
Having post purchase dissonance with SVU the next day (today). Before the add, had believed I might make it a core (large) holding. Now, not so sure. So very much a competitive business with new entrants too. The county seems to have plenty of grocery stores (WMT and TGT expanding also.)
Have not sold any of my earlier purchases (I have some from the Albertson takeover too.) - Shoulda/coulda/dint, I guess. Have no intention of selling any now.
Agree with you that by the value numbers, this one looks cheaper than competitors KR and SWY. (I have a very small exploratory-few shares of SWY.)
Company has more debt than in past because of the Albertson deal. Maybe they can do something with the debt (like reduce it).
The thing with SVU for me is that the company doesn't have to grow greater than the market - just grow along with it. Or alternatively, if the market stays flat, just hold its own. That I believe the company will do.
SVU is one of Mergent's Dividend Achievers, and I hope the company will continue to try to increase dividends. Mr. Buffett buys brand-name food companies (e.g. Kraft) at 12 p/e.
I just don't see where SVU can't be held up as a value stock. I have to expect the stock to do better in a few years with SVU at its current 5-6 p/e and p/sales at lowly .08. For me, I'd rather take the 4.3% dividend yield and bet on the 192,000 employees to deliver earnings results, than I would buy treasury bills.
Once my nerves settle down (if they do), and if the stock keeps dropping on no adverse news, I may add more. |
