I’ve written about Supervalu, Inc (NYSE: SVU) many times, but I never get tired of reading news articles agreeing with my position (I’ve searched for contrasting views, it appears the SVU bears are less inclined to write publicly about their position). The latest to join the “SVU is ridiculously cheap” camp is John Jannarone in the Wall Street Journal:
Supervalu has assets investors may be ignoring. The company owns 38% of its store space, more than most rivals. Cedrik Lachance of Green Street Advisors says the value of strip-center property has surged 45% from its 2009 trough and is now just 10% below its 2007 peak. That could soon set the stage for Supervalu to unload weaker locations.
Supervalu’s shares are dirt cheap, with an enterprise value of 4.6 times Ebitda, roughly a point below stronger rivals Safeway (NYSE: SWY) and Kroger (NYSE: KR). For those with faith in management’s strategy, the shares look like a great value.
Read the full article here.
Author Disclosure: Long SVU
No related posts.
to follow a category