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

To: Paul Senior who wrote (61534)	12/11/2018 2:41:10 PM
From: E_K_S	Read Replies (2) \| Respond to of 78708

Re: UFNI . vs . Kroger I actually like the Whole Foods relationship and ties w/ Amazon now. It could be a hidden Gem in the end game. Doing more research on their business last few days/weeks, has me a bit more positive on assets they own, their future cash flows and maybe interest from Amazon for the company after the SVU integration is completed. An analyst lowered their price target today to $14.00/share based on their Whole Foods contract that ends 2025. They cited worst case if that does not get renewed and/or renegoatiated. I actually see it as a net positive. There is a lot management can do to bring more efficiencies into the business especially if they work with Amazon. Lot's of warehouse/distribution systems possible and direct delivery from warehouse to end customer. FWIW, been following Kroger too for a possible value Buy. Kroger picks location for first automated warehouse Nov. 19, 2018 2:43 PM ET Kroger ( KR +1.2%) says it will invest $55M to build its first automated warehouse in Cincinnati suburb Monroe as part of a partnership with Ocado. The automated warehouse equipped with digital and robotic capabilities is expected to be sized at 335K square feet. Kroger is expected to build around 20 of the robotically operated warehouses around the U.S. "Kroger is joining with the best partners in the world to co-innovate and leverage technology to redefine the customer experience," says Kroger CEO Rodney McMullen. --------------------------------------------------------------- I think a UNFI/Amazon has a better chance of success than a KR/Ocado partnership. Kroger partners with e-commerce company to build new fulfillment centers I have KR on my watch list. PE is 12.96 so may also start a position if I can buy w/ a 3% yield (KR price would need to be below $20/share). UNFI 40% of the PE of KR. More food for thought. EKS