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Naming names: The picture on Supervalu (SVU +30.6%) comes into focus with Debtwire reporting...

Naming names: The picture on Supervalu (SVU +30.6%) comes into focus with Debtwire reporting that Cerberus Capital Management wants to line up $4B-$5B in debt financing to take over the grocery store operator.
Comments (8)
  • pittsburgh jamie
    , contributor
    Comments (10) | Send Message
     
    Thank you Cerberus for not making this a total loss for me!
    22 Oct 2012, 04:37 PM Reply Like
  • BWare
    , contributor
    Comments (5) | Send Message
     
    Ditto, Jamie.

     

    This has been so bad that it does keep me awake and my upset stomach is coming back. What kills me is that SUV is a real player in the food business and is worth a great deal overall. Perhaps this is what everyone refers to be when one says they are all in.
    Tomorrow should be interesting.
    22 Oct 2012, 06:18 PM Reply Like
  • jimpayne1
    , contributor
    Comments (28) | Send Message
     
    Actually, today was very interesting, I wonder how much more upside you can expect from this right now. We'll be watching!
    22 Oct 2012, 06:21 PM Reply Like
  • pittsburgh jamie
    , contributor
    Comments (10) | Send Message
     
    Yeah, it's weird to think that a company with $8 Billion in Revenue can drop from billions of market cap to 400 mil. Even if there sales keep slipping, and they end up with 5-7 billion in sales, they should be able to have cash flow and profits. Hopefully the new CEO can create positive earnings. Or find a buyer that would like entry into a Chicago, West Coast, or other area markets. I mistakenly bought this at $4.50 and bought more at $2. This possible bid saved my kiester in this stock, though I think the company is worth even a bit more than $3 per share.
    23 Oct 2012, 12:12 PM Reply Like
  • Momintn
    , contributor
    Comments (4281) | Send Message
     
    EPS: -5.07

     

    Why would anyone be holding this stock?
    22 Oct 2012, 08:32 PM Reply Like
  • New Century
    , contributor
    Comments (130) | Send Message
     
    EBITDA, EV/EBITDA, etc...
    22 Oct 2012, 11:38 PM Reply Like
  • alphaswitch
    , contributor
    Comments (2) | Send Message
     
    Be careful to pay attention to how much one-time non-cash items are contributing to GAAP earnings. Certain companies, such as T, might look worse if you don't parse out the non-recurring.

     

    Had been my thesis on SVU for a while that GAAP earnings, which were largely driven by goodwill write-downs, were self-fulfilling in a way. The write-downs, driven by falling share price, lead to seemingly poor earnings, which then led to more falling share price, which then led to more write-downs, and so on. So the share price fell because, well, the share price fell?
    23 Oct 2012, 02:46 AM Reply Like
  • pittsburgh jamie
    , contributor
    Comments (10) | Send Message
     
    Well if you bought at $1.80 or so you'd look pretty smart.
    23 Oct 2012, 12:13 PM Reply Like
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