Village Super Market, Inc. (NASDAQ:VLGEA)

CAPS Rating: 5 out of 5

The Company operates a chain of 23 ShopRite supermarkets in New Jersey and eastern Pennsylvania. The Company is a member of Wakefern Food Corporation, the retailer-owned food cooperative in the United States.

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Player Avatar xPhr0z3n (97.03) Submitted: 1/29/2009 1:59:52 PM : Outperform Start Price: $22.17 VLGEA Score: -135.14

Have recently found a new way to generate income. For a while I was a vendor for Pepperidge Farm cookies and when I was leaving they put it a new policy. For every error made by a vendor (Honest mistakes, miscounts, misrepresentation of item, ANYTHING) they would fine the company $50.

Say I walked in delivering $100 worth of cookies, and the my bill didn't exactly match what was on their bill (It's common this happens), Pepperidge farm just lost $50. It turns out over the past year one receiver for one of the ShopRites made nearly $300,000 for ShopRite due to these fines. Now ShopRite is looking for all their receivers to match close to that number so there will no longer be any breaks. This is %100 profit and is only going to increase from here.

This may not seem like much but look at the balance sheet. For a company netting a little over $300 million annually, a 5-10 million profit increase in solely fines for mistakes is a nice chunk of change.

ShopRites are also doing remarkably well, and VLGEA is doing EVERYTHING they can do to not let this recession hurt there numbers.

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