Posted on August 15, 2021
We’re going grocery shopping today – at Albertson’s (NYSE:ACI).
Because it’s expensive… and dammit, we’re worth it.
A tad TOO expensive for our taste.
To start, the company’s fundamentals are middling to poor –
So whence the optimism?
As the charts below will show, Albertson’s caught a price goose three weeks ago, directly after they reported earnings AND announced the purchase of Sharon McCollam as the company’s new President and CFO – the selfsame McCollam who turned Best Buy’s struggling e-commerce business around.
Now that’s all fine and dandy, say we, who’ve known Sharon from her college days (and nights) in the pubs of County Cork.
A great lover of fish & chips and the pint, she is, and a great lass, all round.
But is she worth a 50% rise in the stock price in just three weeks?!
Or will this all pass like a damp and misty Irish morning hangover.
Our breakeven on the trade arrives at $29.30 (just $0.55 below the current $29.85 level).
That’s our story, and we’re sticking to it.
The G-d of Israel is good to all who recognize Him.
Give praise and thanks to the Al-mighty!
With kind regards,
Hugh L. O’Haynew