SUPERVALU Shares Popped: What You Need to Know

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: SUPERVALU (NYSE: SVU  ) shares popped 10% in intraday trading earlier, but it's not clear why; there doesn't appear to be any new news to justify bullishness on SUPERVALU today.

So What: The grocery company reported a hairy quarterly net loss and plunging sales last week, and also lowered its earnings guidance for 2011. This company's much-needed turnaround is going nowhere fast, and there's no news today to give investors a more bullish outlook.

Now What: Investors should steer clear of SUPERVALU. It competes with scores of formidable rivals including Safeway (NYSE: SWY  ) , Kroger (NYSE: KR  ) , Wal-Mart (NYSE: WMT  ) , and Target (NYSE: TGT  ) , not to mention plenty of privately held grocers like Wegman's; it's also got a massive debt load that investors shouldn't take lightly. There's no compelling reason to bag up shares of this grocery stock today.

Interested in more info on SUPERVALU? Add it to your watchlist.

Wal-Mart is a Motley Fool Inside Value pick. The Fool owns shares of Wal-Mart. Try any of our Foolish newsletter services free for 30 days.

Alyce Lomax does not own shares of any of the companies mentioned. The Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.


Read/Post Comments (5) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On October 28, 2010, at 5:09 PM, RHinCT wrote:

    "... shares popped 10% in intraday trading earlier..."

    So when was "earlier"? Not on Thursday 28 Oct, the day this was published. At least not according to Yahoo, Google, Fidelity or Morningstar. Nor yesterday (Wednesday). Nor the two days combined. When and where did you see this event?

  • Report this Comment On October 29, 2010, at 1:22 AM, tpok wrote:

    I heard that Super Valu sold off the struggling Bristol Farms.

  • Report this Comment On October 29, 2010, at 7:17 AM, Nrmn wrote:

    Hmmm... almost sounds like a desperate attempt to keep the share prices down. Are you short this stock and how many short shares do you hold? Get your head out of the dark places and verify your information before you attempt to act the FOOL. (Laughing at ya with the rest of the FOOLS.)

  • Report this Comment On October 29, 2010, at 7:58 PM, tpok wrote:

    It was confirmed today. Sorry my head was never in the dark place.

    Supermarket operator Supervalu Inc. said Friday it has sold its Bristol Farms chain to that division's management team in partnership with investment firm Endeavour Capital.

  • Report this Comment On November 05, 2010, at 2:35 PM, TMFLomax wrote:

    RHinCT

    Thanks for the comment - sometimes there are some data discrepancies, but at the time of writing this, we did see the pop in the data we were looking at.

    tpok, thanks for the info on the Brisol Farms sale, I will have to look into that. I didn't see that in my searches that day, so thanks for bringing that to light. (Still, I think this is a risky stock.)

    Nrmn, I am not short this stock, nor long (as stated in the disclosure).

    Cheers!

    Alyce

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8/29/2014 4:05 PM
KR $50.98 Down -0.02 -0.04%
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Supervalu CAPS Rating: ***
SWY $34.78 Up +0.01 +0.03%
Safeway, Inc. CAPS Rating: **
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Target CAPS Rating: ***
WMT $75.50 Down -0.40 -0.53%
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