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

To: Paul Senior who wrote (45051)	10/19/2011 9:59:27 PM
From: E_K_S	Read Replies (1) \| Respond to of 78666

I was lucky to get a sale on a few of my SVU shares at today's high when they announced their earnings this AM. My plan was to sell some of my high priced shares and book a loss. I think my previous buys around $6.50/share will stand as the low considering management is positive about the future and earnings are stable to higher and cash flows remain strong. As time passes, they are paying down their large debt too. I still see a lot of value in their logistics and distribution division. The wildcard would be for the company to either sell or spin this division into it's own operating company. There was some talk that Target or Sysco might be interested in that division. I believe Target was building their own warehouse and distribution network (specifically for boxed food, freezer/fridge items and produce) to service their Canadian and Midwest stores. Previously SVU was their exclusive distributor (in 2008/2009) but was cut back in 2010. Not sure where it stands now and if Target got their logistic system in or went back to SVU. Sysco was looking to expand their operations and the SVU logistics business was a good fit. Barron's (or Fortune) did a story on this several month ago but I have not heard much. My quick analysis had SVU's logistics and distribution worth $3.00/share. Not buying any more shares at current levels and not selling any more either. If we see $10.00/share I may Peel off a few shares. The value story on this one is still promising. Very satisfied w/ today's earnings. EKS