SuperValu is tough to love over its segment, but this is a value stock with a turnaround to boot.  This stock be a $21.50 stock before its valuation gets too close to peers.

GameStop Corp. (NYSE: GME) is the hard buyout rumor to buy.  It has come up as a buyout name in the past but nothing every materialized.  A buyer wants to be able to buy a company on the cheap and GameStop is definitely on sale or at least at a significant discount.  But the company also has no real catalysts behind it.  The video game industry is no longer growing as it was and the launch of a new wave of game consoles is a notion that does not seem like a promise any time in the near future.

The GameStop rumors also look very short-lived.  The video game retailer hit a high of $19.84 early Friday morning but the stock closed down 0.7% at $19.12 on the day.  Not much conviction.  In the world of M&A we are never be surprised by anything.  But the Friday trading was not active enough to merit the bother of a rumor, and the sector news flow has pointed more toward a consolidation of game publishers more than a consolidation of the pure-play video game retail sales locations.  As far as all those downloadable games, that is a risk ahead for GameStop that a potential buyer might not be able to escape.  On GameStop, we noticed how more of the options trading seemed to be hedged trading rather than anything with conviction.

SuperValu saw 4-times normal trading volume in the stock and its stock options were among the largest standout trades and most active options.  Our only notion here is that the APR-2010 Calls are not factoring in much more than a $18.50 share price for a month out.

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JON C. OGG