Mark Krieger

Kroger: Earnings Debacle Creates Buying Opportunity

you are right...sorry about the incorrect data on the dividend--it is an annual payouy of 35 cents. The stock is still a steal at these levels though!!


On Dec 20 10:54 PM icandoitdon wrote:

> got to get the facts straight boys.
>
> super value's dividend is 8 3/4 cents quarterly, giving a yield under
> 3%.

Kroger: Earnings Debacle Creates Buying Opportunity

SVU does not own the " food for less" chain, KR does--SVU owns the Sav-alot concept


On Dec 11 10:16 AM Bottom Up Investments wrote:

> I think grocery store deflation will be here for some time. Now that
> Target is emulating Walmart's strategy, there is going to be double
> the chances of a lower cost store being close enough to skip going
> to the local Safeway or Kroger or what have you. This is only going
> to keep pressure on prices. I think its telling that SVU is focusing
> almost all of their investment Capex on Food 4 Less stores, which
> cater to families with an average income of $40K per year.
>
> If you believe that commodity cost inflation will resume pressuring
> input costs and that consumer frugality is here to stay (out of neccessity),
> then its hard to imagine a scenario where grocery stores and its
> suppliers are able expand profit margin. Probably the only way grocers
> can and will is to increase private label penetration. My thought
> would be to go long SVU because of it has the lowest private label
> penetration and valuation and possibly hedge my risk by shorting
> a SWY or KR.
>
> On Dec 11 09:28 AM Mark Krieger wrote:

Kroger: Earnings Debacle Creates Buying Opportunity

I made a mistake. I said KR was the only Grocer in the space that had investment grade debt-that is incoreect, because SWY also has its debt rated at investment grade. Today's news that SWY is doubling its stock repurchase committment from $1 billion to $2 billion is what Wall Street wanted to hear.SWY shares are soaring in the premarket due to the news.WILL KR follow with the same action?

Kroger: Earnings Debacle Creates Buying Opportunity

sorry, but I am right...the dividend yield before they cut it in half was 9.5% ( they reduced the annual payout 6 weeks ago from $1.40 to .70), and now the yield is about 4.8%


On Dec 11 08:58 AM Howard Foster wrote:

> Dividend yield you quoted on SVU is not correct. That was before
> the dividend cut

Kroger Supermarket Disappoints and Lowers Guidance

Today's drop is classic buying opportunity. KR's PE is much lower than the S&P 500 index average. The whole sector is inviting.