Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Great Atlantic & Pacific Tea Co.
So What: The company, which owns the A&P supermarket chain, reported a big loss this quarter, roughly double its loss a year ago, as sales continue to decline. Despite the gloom, investors were cheered by the company's progress with its turnaround.
Now What: Great Atlantic & Pacific Tea continues to lay off workers and shutter stores as part of its turnaround, and has brought in a new executive team. In addition, the company is working with lenders and advisors to figure out how to manage its $1.5 billion debt. Since common stock owners represent a sliver of the company's capital structure, they will benefit disproportionately from any upside a successful turnaround yields.
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