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: Grantcw who wrote (40732)	12/21/2010 1:11:38 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78958

Grant- re SVU - SVU (a. k.a. Albertsons in my neck of woods) is not for frugal folks, in fact it is one of the most overpriced grocery chains out side, worse than Safeway. We rarely shop there at all. The grocery business model is to draw traffic with promotions, in the hope that customers buy some overpriced other stuff. Well, maybe they don't any more but rather go to cost leaders like Walmart, Target, Trader Joes and Costco and buy only the promotions at the grocery store.

To: Grantcw who wrote (40732)	12/21/2010 11:24:22 AM
From: rllee	Read Replies (1) \| Respond to of 78958

Supervalu partnered with CVS Corp. and an investment group led by Cerberus Capital Management for the Albertson’s deal, taking on about $6 billion in debt as part of the transaction. Supervalu’s acquisition of its larger rival gave it more than 2,600 stores across the country. Besides its name sake, Albertson’s also operated Acme Markets, Bristol Farms, Star Markets and Jewel-Osco. But the financial crisis hit supermarkets hard, and a slow economy and intense price competition continue to plague grocery store chains. Supervalu has also been struggling with its debt load. Moody’s recently cut its rating on Supervalu further into junk territory. Wall Street has called for Supervalu to shed assets to pay down some of its debt. The grocery store chain has been selling off parts of the company throughout the year. In February, it sold 16 Shaw’s stores in Connecticut, but there are still more than 175 stores in New England. Some analysts have valued the chain’s assets at about $1 billion. And in October, Supervalu announced the sale of its Bristol Farms division to a company formed by Bristol Farms management and private-equity firm Endeavour Capital. Bristol Farms is a grocery store chain that markets itself as being “upscale”, with thirteen stores located mainly in the Southern California market. Last year, Supervalu said it was selling 36 Albertsons stores in Utah to Associated Food stores. With a market capitalization of $1.85 billion, a size that’s in the sweet spot for dealmakers, Supervalu itself has been the subject of takeover rumors. Question - Has takeover rumors done anything to SVU so far?