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

To: E_K_S who wrote (44158)	8/31/2011 11:22:50 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78632

re Groceries - i'll pass on SVU for the following reasons - tough sector that is suffering from what i think is permanent margin pressure - unionized grocers fight with one hand tied to the back - I am not impressed by the Albertson and Ralph's market close to me. I believe DEG or AHONY are worth a look. Much better balance sheet and lower EV/EBITDA valuation. At least DEG is not unionized as far as I can tell. TESCO is still an international growth story. If it falls below 18$, i'll buy a first lot. As for food companies, I am currently in China and really like how Nestle (NSRGY) is positioned here. They get a fair share of shelf space in supermarkets, their products are prices somewhat above local competitors but not excessively so (more like 10-20%). Since there are so many food scandals in China (newspaper are full of reports), i believe foreign brands can easily hold their own against local competitors because consumers will trust them more. I still own most of my NSRGY shares bought in 2009 and those in 2003. I think it is just a great LT growth story.