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 been under a review for some time, but now the plot is thickening.
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
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
