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Albertson’s CEO Defies Shorts: Claims Batflu Delirium Led to Craving For Finer Cuts of Beef (ACI)

Posted on August 15, 2021

We’re going grocery shopping today – at Albertson’s (NYSE:ACI).

Why?

Because it’s expensive… and dammit, we’re worth it.

A tad TOO expensive for our taste.

Follow along as we break it down.

To start, the company’s fundamentals are middling to poor –

  • She trades with a P/E of 24.45 (a grocery store, gang),
  • Offers a passable annual yield of 1.34%, but
  • Can barely walk due to that gluttonous Price to Book ratio of 8.18 (!).
  • Management is also apparently unfazed with the company’s current debt burden – Debt to Equity ratio is obese at 4.92, almost all of which is long term.
  • Quarter over Quarter sales fell by 6.5%,
  • Q/Q earnings fell by 22.50%,
  • Earnings for next year are expected to decline by 0.59%, while
  • The five year Earnings outlook sees a decline of 10.57%. according to analysts’ consensus.

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.

Have a look –

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!

!אין עוד מלבדו

With kind regards,

Hugh L. O’Haynew

 

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