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

To: batman10023 who wrote (1794)	7/12/2012 10:46:43 PM
From: bankbuyer	Respond to of 1876

Re SWY and the rest . " Supermarkets' share of U.S. grocery sales fell to 51% in 2011, down from 66% in 2000, according to UBS. One major cause: Big-box discounters including Wal-Mart Stores Inc. and Target Corp. are using food to reel shoppers into their stores, where they hope to tempt customers to buy more profitable housewares and clothing."

To: batman10023 who wrote (1794)	7/13/2012 7:00:06 AM
From: KyrosL	Read Replies (1) \| Respond to of 1876

SWY doesn't have that much less debt relative to revenue than SVU. Don't know about their union and pension issues. In terms of p/e, at yesterday's price SVU was selling at half SWY's, projecting SVU's 0.19 for the whole year. SWY dedicates one third of its free cash flow to its dividend, so one could argue that it has less financial flexibility than SVU, at least in the short term. SVU is a trade for me, as are all my turnarounds. I think any rumors or hints that SVU may be able to sell some of its pieces will make the trade work.