I mentioned SpartanNash (NASDAQ:SPTN) back in January here as a sound play on rising food inflation. Although many Wall Street analysts have been quick to yell sell on the nation’s grocery retailers
A Bargain Hard To Ignore: SpartanNash
Summary
- The company is undervalued by 30-40% relative to its past metrics and present S&P 500 ratios of operating fundamentals.
- A sustainable and rising 4% dividend yield is available for new investment.
- A new partnership deal with Amazon in 2020 could expand sales, cash flow, and earnings faster than most are anticipating.
- Short interest levels are high, expecting a downturn in the business as COVID-19 recedes, which may not occur if the Delta variant spreads fast.
- Healthy technical indicators argue for an upturn in price and eventual breakout from a long-term price downtrend.
Nationally ranked stock picker for 30 years. Victory Formation and Bottom Fishing Club quant-sort pioneer.....Paul Franke is a private investor and speculator with 38 years of trading experience. Mr. Franke was Editor and Publisher of the Maverick Investor® newsletter during the 1990s, widely quoted by CNBC®, Barron’s®, the Washington Post® and Investor’s Business Daily®. Paul was consistently ranked among top investment advisors nationally for stock market and commodity macro views by Timer Digest® during the 1990s. Mr. Franke was ranked #1 in the Motley Fool® CAPS stock picking contest during parts of 2008 and 2009, out of 60,000+ portfolios. Mr. Franke was Director of Research at Quantemonics Investing® from 2010-13, running several model portfolios on the Covestor.com mirror platform (including the least volatile, lowest beta, fully-invested equity portfolio on the site). As of September 2024, he was ranked in the Top 3% of bloggers by TipRanks® for 12-month stock picking performance on suggestions made over the last decade.A contrarian stock selection style, along with daily algorithm analysis of fundamental and technical data have been developed into a system for finding stocks, named the “Victory Formation.” Supply/demand imbalances signaled by specific stock price and volume movements are a critical part of this formula for success. Mr. Franke suggests investors use 10% or 20% stop-loss levels on individual choices and a diversified approach of owning at least 50 well positioned favorites to achieve regular stock market outperformance. "Bottom Fishing Club" articles focus on deep-value candidates or stocks experiencing a major reversal in technical momentum to the upside. "Volume Breakout Report" articles discuss positive trend changes backed by strong price and volume trading action.
Analyst’s Disclosure: I am/we are long SPTN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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