NEW YORK, March 20 (Reuters) - Grocery store chain Supervalu may be on the cusp of a corporate turnaround and could be a good buy for investors, Barron's financial newspaper reported on Sunday.
Shares of the third-largest U.S. supermarket chain have fallen to a recent $7.79 per share from $49.67 per share in 2007, and the company's relatively new management team has struggled to keep same-store sales from falling, Barron's reported.
But Supervalu is generating positive cash flow, as its management team has sold off some units and cut costs.
The paper also argued that investors 'are overlooking several existing strengths in Supervalu's portfolio of operations,' including its wholesale grocery business.
'Both shoppers and investors may want to start loading up the carts,' Barron's concluded.
(Reporting by Maria Aspan; Editing by Diane Craft) Keywords: SUPERVALUE/BARRONS (maria.aspan@thomsonreuters.com; +1 646 223 6394) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Shares of the third-largest U.S. supermarket chain have fallen to a recent $7.79 per share from $49.67 per share in 2007, and the company's relatively new management team has struggled to keep same-store sales from falling, Barron's reported.
But Supervalu is generating positive cash flow, as its management team has sold off some units and cut costs.
The paper also argued that investors 'are overlooking several existing strengths in Supervalu's portfolio of operations,' including its wholesale grocery business.
'Both shoppers and investors may want to start loading up the carts,' Barron's concluded.
(Reporting by Maria Aspan; Editing by Diane Craft) Keywords: SUPERVALUE/BARRONS (maria.aspan@thomsonreuters.com; +1 646 223 6394) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.