Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (15364)	8/29/2002 2:38:08 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78748

Wallace: Contrat's on your timely sale. KR's PR on the cancellations indicated reg FD concerns...not wanting to put out guidance or alter perceptions during 'blackout period' Agree it's strange and a bit concerning since no one else is cancelling. I suspect, though, that it will turn out to be just an ill-timed [Same day as Morgan downgrade] move. Regarding Morgan's take on increased competition: This is news? S&P put them on ** Avoid back in June citing competition; It's been cussed and discussed aplenty...the stock is trading at trough multiples...already reflecting well-known concerns 'bout the bad-boy from Benton. Merrill today reiterated Strong Buy - Excerpts: 2003E $1.77; 2004E $2.00 * While all of retail has been soft in August we believe Kroger’s quarter started well and should overall be able to show an improvement over 1Q’s +0.6% identical sale. Cost savings have similarly outperformed expectations. * The timing of this given the weak sales environment has led some to add one and one together and get a number way north of two. * We think the stock represents exceptional value especially at these prices and reiterate our Strong Buy recommendation. The risk to our $28 price target is that consumer spending decelerates further reducing SG&A leverage and necessitating further gross margins investment. * We are not reducing our forecasts at this stage. Ahold’s good U.S. food retail earnings today (up 22% at the operating level) shows that just because overall retail sales are weak, its possible to show good predictable earnings.