Winn Dixie's Buyout Could Be The Catalyst For A Supervalu Breakout

Tue, 12/20/2011 - 14:58 EDT - Seeking Alpha

By Bret Jensen:Winn Dixie’s (WINN) buyout the other day at a huge premium should encourage investors to look at other beaten down stocks in the supermarket space that could be next in line for a buyout at substantially higher prices. One stock I like in this area is Supervalu. 7 reasons why Supervalu (SVU) is undervalued at $7.50 a share: 1. Several insiders have been buying shares in the last few months. 2. Supervalu is selling at the bottom of its five year valuation range based on P/E and P/S. 3. The company has significantly beat consensus earnings estimates each of the last three quarters. 4. SVU hasComplete Story »

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Two Supermarket Operators Reach Maximum Pessimism
Mark Krieger submits:Winn Dixie (WINN) is at an all time low, SuperValu (SVU) is less than $2 from a 21 year low. Market sentiment is extremely negative. Consumers are becoming more price conscious, Wal-Mart (WMT) continues its quest for world domination and a pill has been invented that makes eating obsolete! You get my point, the hysteria is getting out of hand and creating the perfect buying opportunity to exploit. It could be an appropriate time to step up to the checkout line and load up on supermarket stocks.
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Winn Dixie's Buyout Could Be The Catalyst For A Supervalu Breakout

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