@VIC: Ken Shubin Stein on Winn Dixie

Fund manager Amit Chokshki attended this week's 3rd Annual New York Value Investing Congress on behalf of Seeking Alpha. Here are Amit's notes from the presentation of Ken Shubin Stein, Spencer Capital:

• Winn Dixie (WINN) – long idea; post bankruptcy turnaround; Spencer owns 6% of WINN - it is the firm's largest investment
• EBITDA margins are ~1% while the industry is around 6%; WINN is valued at 5.7x
• Stock has potential to double in next 3 years
• EV/EBITDA while the general industry trades for 6.3x EV/EBITDA
• WINN experienced difficulties from ’95-’05 due to internal problems as well as competition from Walmart and Publix
• Spencer Capital thinks WINN is a promising turnaround and can raise EBITDA margins closer to industry averages
• Hired Peter Lynch as CEO
  • Lynch was former COO of Albertsons and has experience in a variety of grocery-specific turnarounds
  • Debt renogotiated, $100m of overhead costs cut out
  • Lynch has hired his own team to help manage the turnaround
• Brand has been tarnished, but still has significant equity; remodeling, convenience will help
• WINN offers a margin of safety vs. current market cap of $1b through its strong balance sheet: $212m in cash, $250 in net working capital, $317m in undervalued leases, over $600m in NOLs
• WINN is an obvious acquisition target after 11/08; limited downside and over 2x upside.

Comments

[Unhapopy:]

I have Winn Dixie stock before it went to chapter 11. I would like to put the lose on my tax return for 2007. Could you tell me what Winn Dixie was trading in 1977 1978. I want the figure to figure my loss.I have 1204 shares. Any help you can give me would be appreciated. My e/mail is [e-mail]

2008 Jan 17 01:09 PM