Winn-Dixie Stores, Inc. (NASDAQ:WINN)

CAPS Rating: 2 out of 5

The Company is a food retailer operating in southeastern United States.

Recs

2
Player Avatar tenmiles (99.70) Submitted: 8/23/2010 6:56:43 PM : Outperform Start Price: $7.85 WINN Score: -66.34

Nothing super about supermarkets lately. This pick may cost me my existing score leader position, but after stock's recent dismal performance believe current price represents a highly attractive time to re-enter a long on Winn Dixie with real money for those with three year horizon. Deep value play (which may get even a bit deeper after earnings next week), but on a valuation basis, the recent selloff appears overdone to me. Net cash is around $150 million, or over one third of total market capitalization. Cost cutting efforts are real, if not spectacular. Unless EBITDA completely falls out of bed (sub $140 million), expect that the stock will start to stabilize in this area - buyer in the upper 7's.

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