Seeking Alpha

Safeway higher following P-E interest

  • Shares of Safeway soar following reports of P-E interest in the firm.
  • Deutsche Bank is more than a tad positive on the deal, saying with Cerberus in the mix and potential synergies in play that a $56 trading price for Safeway is possible.
  • SWY +7.3% premarket to $35.30.
Comments (6)
  • Mark Krieger
    , contributor
    Comments (4668) | Send Message
     
    what a beautiful thing
    23 Oct 2013, 10:01 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (4668) | Send Message
     
    why weren't they sniffing around SWY last year when it was trading at less than 1/2 its current price? you'd these guys would be smart enough to realize you are supposed buy low, not high.
    23 Oct 2013, 11:04 AM Reply Like
  • New Low Observer
    , contributor
    Comments (2268) | Send Message
     
    Hi Mark,

     

    Almost one year to the day after your recommendation to buy SWY.

     

    Regards.
    23 Oct 2013, 11:44 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (4668) | Send Message
     
    sometimes I get one right! thank you for noticing!
    23 Oct 2013, 11:57 AM Reply Like
  • PChan444
    , contributor
    Comments (514) | Send Message
     
    Cerberus are like the short bus kids of the PE world
    23 Oct 2013, 12:35 PM Reply Like
  • New Low Observer
    , contributor
    Comments (2268) | Send Message
     
    PChan,

     

    I would contrast the Cerberus interest in (SWY) with Warren Buffett's acquisition of Heinz (http://bit.ly/1gFmQHT). Buffett participated in the HNZ deal after the stock had increased +275% from the low.

     

    Cerberus would need SWY to go above $43 before they start to look less than worthy of their name. So far, Cerberus "appears" smart by comparison to Warren's recent deal.

     

    Regards.
    23 Oct 2013, 12:53 PM Reply Like
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