Most of your post is about the fundamental story behind the company, I don't think it's about being a "value stock". If an acquirer can make better use of a company's assets than the present company, that's great for the share price and it makes it an acquisition target, but that isn't really part of being a value stock or not value stock.
I think great value stock stories are (for example) where a company has lots of properties on its book at cost, but the properties have appreciated tremendously in value, and the shares don't reflect the actual value of the owned property. The investor can tell themself something like :"this company owns $25 per share in buidlings at current market prices", no debt, and the share price is only $15. That's a value stock. It may stay at $15, or it may get acquired by some entity that wants to sell all the valuable properties and become worth $30, but either way, before the "story" begins, it's a value stock.
To invest in a value stock it should also have a "story" that convinces you the share price will go up in the future, that's for sure. Or it had better be deep deep value, so nothing special can happen and one would think common sense would push the shares higher.
I don't quite understand what UNFI does, even though I own a bit of it. I sold most of mine in the low twenties, but hold a bit just to keep me paying attention. But I'm still not sure exactly what they do - something in food! |
