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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (41847)	3/19/2011 5:24:52 PM
From: E_K_S	Respond to of 78510

Time to Load Up the Cart - (SUPERVALU Inc. (SVU)) Barrons - SATURDAY, MARCH 19, 2011 online.barrons.com From the article"... Investors are overlooking several existing strengths in Supervalu's portfolio of operations that should prevent it from becoming another industry death star like A&P, which filed for bankruptcy last December. One is Supervalu's wholesale-grocery business—which supplies the company's 1,140 traditional grocery stores, 1,230 deep-discount Save-A-Lots and 1,900 small, independent stores. This steady-eddy concern, the largest grocery wholesaler in the U.S., will chip in about a third of Supervalu's operating earnings, or some $300 million a year, and is largely impervious to price competition from the discounters. Supervalu is investing heavily in the Save-A-Lot chain of small, no-frills discount stores that are increasingly set up in densely populated metropolitan areas largely beyond the reach of big discounters like Wal-Mart. Their competition is mainly from dollar stores and small, high-priced ma-and-pa establishments. "These stores keep prices down by offering lots of private-label goods and limited brand selection while at the same time providing low-income customers with an assortment of fresh items like produce, meat and dairy that the neighborhood establishments may not carry," an insider at Supervalu, now in its earnings quiet period, tells Barron's. "The chain caters to the fastest-growing cohort in the U.S. population—the households making $45,000 or less, and frequently on food stamps." ..." ------------------------------------------------------------------ Pretty much what we have already discussed on this thread. EKS FWIW - 112 cruse missiles launched on 20 different Libya targets at or about 11:00 AM EST 3-19-2011.