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WINN - Winn-Dixie


beerbaron

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WINN just printed 6.35.  It's looking purty again.

 

We've been buying...it does look "purty" again!  Cheers!

 

9 months ago it was a good buy. Today it's an OK buy, there is so much great assets at a good price today that the turnaround story of WINN is not that compelling anymore.

 

BeerBaron

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5.92$ Friday, 200M in cash, FCF in 60-70M per year and decent numbers (400-500$/sq foot) are still happening in the complete remodels (ROI around 18%).

 

Parsad I'm sorry you were right, it's getting priced as if they are bankrupt. It's great to be in and out of stocks like this, the research time is considerably lower :)

 

BeerBaron

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Sure, I was simply referring to adjusting the balance sheet for the company's operating leases.  After adding their operating leases back onto their balance sheet, the company doesn't appear as attractive on relative valuation metrics (EV/EBITDA specifically) relative to peers KR, SVU, and SWY.  I agree that on an absolute basis, assuming mcx of $75mln for 2011, that the company appears attractive. 

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http://www2.tbo.com/news/business/2011/oct/06/2/winn-dixie-boldly-trying-to-change-perception-ar-262990/

 

 

Gonzalez acknowledges this is not the Winn-Dixie most people envision in their mind: A chain of dingy grocery stores, pushed by Publix and Walmart into bankruptcy.

 

Changing that impression means breaking out the checkbook. One of Florida's relatively small grocery chains, Winn-Dixie is spending more than $100 million on renovating stores into "Transformational" models to rival a Whole Foods or Fresh Market in terms of style and polish.

 

Plus, the company, now out of bankruptcy, is investing in new store technology and giving discount gas deals to frequent shoppers.

 

Investors say that project represents the best hope Winn-Dixie has for surviving in a hypercompetitive Southeastern market.

 

It's no idle question, either. Publix, Sweetbay and Walmart are all polishing their stores to more modern, luxurious style, and focusing more on higher-tier foods. Nearly every week, Winn-Dixie ranks as the most expensive store in the Tribune's Market Basket index of 30 common products, and Winn-Dixie stock has lost half its value since August to less than $6 per share.

 

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