SUPERVALU M&A Chatter Picks Up
SUPERVALU Inc. (NYSE: SVU) is down and out, and the question is whether it is so down that it is out of time. Shares closed at $2.12 on Thursday against a 52-week range of $1.68 to $8.75. The company has…
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There are multiple reports that SUPERVALU is trying to find bids for the entire company, at a time when most of the interest has so far been on a piecemeal basis.
SUPERVALU has been the subject of multiple rumors over recent months. First it was a turnaround, then it was a failed turnaround. Then there was hope of a merger, but then the warning was just atrocious from the company and the shares tanked.
With a $2.12 stock, you have to wonder how the Thomson Reuters consensus EPS estimates of $0.73 for fiscal February 2013 and $0.69 for fiscal February 2014 can be anywhere close to true. Obviously these estimates are out of whack with reality.
The company has only $64 million in shareholder equity as of its last balance sheet, but on a net tangible assets basis the company is listed as being -$1.577 billion.
Shares are indicated higher on Friday morning, but this is a company where the future is under question if no bidder shows up.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
