Vjawarrior
Kurra Bewarse Username: Vjawarrior
Post Number: 1494 Registered: 05-2017 Posted From: 192.251.84.7
Rating: N/A Votes: 0 | Posted on Tuesday, May 29, 2018 - 4:28 pm: | |
Kubang: In comparison… Kroger (NYSE: KR), the country’s largest retail grocery chain, currently trades at 3.1-times book value. And Whole Foods Market was trading for nearly four-times book value when it was acquired by Amazon. As I said, as a potential take-over target, Supervalu’s stock may be worth more “dead” than “alive.” If a prominent grocery chain, like Kroger, was willing to acquire Supervalu for a 25% premium to today’s stock price – roughly the premium that Amazon paid for Whole Foods’ stock – shares of Supervalu could go for more than $22.50. If an acquirer was willing to pay 2-times book value – still a steal, I think – shares of Supervalu could go for almost $27. And at Whole Foods’ four-times-book valuation, shares of Supervalu could be worth as much as $50! Of course, there’s no way to know if a deal like this will go through any time in the near future. But with Blackwells already turning up the heat on Supervalu’s board, heading into the company’s summer shareholder meeting, now’s a good time to take a shot at an M&A-driven “windfall” profit. Even if no one steps in to acquire Supervalu at an attractive multiple, the stock still stands to make good gains as investors’ sentiment improves.
makes sense...I dont think kroger will buy these guys at a higher multiple...but lets see.. I thought amazon would buy Kroger....but they didnt... |