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Albertsons: Uncertainty Is The Name Of The Game

Apr. 12, 2023 4:22 PM ETAlbertsons Companies, Inc. (ACI)KR6 Comments


  • Albertsons Companies has seen solid operating momentum since the pandemic.
  • The longevity of the strength surprises me somewhat, as the current investment thesis is overshadowed by The Kroger Co. deal.
  • This deal and an unusual upfront dividend make me cautious.
  • The current deal spread is huge, deal uncertainty will prevail for a while, as debt without a Kroger deal feels high.
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Top Grocery Retailer Kroger To Acquire Rival Albertsons For $24.6 Billion

Mario Tama

About a year ago, I concluded I would run for the cashier in the case of shares of Albertsons Companies, Inc. (NYSE:ACI). The grocery chain had prolonged the pandemic boom of 2020 into 2021, allowing it

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Comments (6)

TommyIrish profile picture
What is your point?
Carson7 profile picture
Trading at a forward PE of 6.73. And, in a slowing economy. Kroger is at a 14 PE. ACI is a really conservative investment, can’t lose really even if the deal falls through..:
Chancer profile picture
I hope the merger FAILS.
Whether Kroger increases stores in my area (doubtful that Feds will approve) or closes stores in my area (more likely), end result will be LESS competition.
@Chancer That's nilminded hogwash. I'll get you a box of tissues. 🤣
Carson7 profile picture
You described the details in a convoluted way. They have massively reduced the debt. CASHFLOW is solid even as we move from Covid. Inflation has changed peoples habits as they now eat more meals at home than before. They have REDUCED debt, yet you claim that it is an issue. Your negativity is not warranted in my opinion.
Dfvcultist profile picture
@Carson7 And isn't the CEO new? Haven't all margin improvements come because of the new CEO? I don't see anyone giving the credit to management here and over serendipity.

In my area, Albertsons has opened new stores more like a whole foods where people go to eat meals and hang out at the upscale bar. I know it's anecdotal but the new direction seems promising.
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