The Great Atlantic & Pacific Tea Company (GAP)

it is horibble and stupid

GAP (no not the clothing retailer) meets the key screening criteria of a wide range of earnings estimates. Analysts are predicting anywhere from -0.48 to -0.19 cents a share for the third quarter. Another screening criteria, history of unpredictable earnings, is also met. For the last four quarters Green Atlantic has suprised analysts to the tune of (-56.1%), (-38.5%), (460.4%), and (74.15) one year ago. I think it safe to say analysts don’t really know what to expect from this company.

More Good News (from my perspective)

Growth for the quarter is expected at -357% , and -120% for the next quarter. Analyts have been revising their estimates downward the last 90 days. The last 52 weeks Green Atlantic has fallen significantly more than the S&P -81% vs. -42%. Not a lot of good expectations for this stock. My favorite indicator of all is the recent insider transactions. Since July of this year insiders have been buying shares like crazy, see here.

Recomendation = Buy

www.tradeonearnings.com

very uneven history of profits, but heck the supermarkets will do just fine in the recession. doomsday is not near, so it's silly to see the company trading at these levels.
redemptions - institutional ownership was at 95%, now at 60something. Not the most sreaming buy out there, but still...
they are still coping with pathmark acquisition - that's a lot of leverage to digest, but even under depression of 1930s levels, this is a $11-12 stock.
$4-5 = complete capitulation.

locations,locations,locations,and new fresh markets

The Great Atlantic & Pacific Tea Company, A&P is a large old-line retail food store. The stock with slow growth is a "classic" consumer non-durable goods company to own in a BEAR Market.

KahunaCFA does not currently own shares of A&P, the Individual Retirement Account will buy some shares this week for a long-term, stable value investment.

Kahuna, CFA

in recession food sells, company is well managed, undersold, undervalued and management has bought big.

It has pretty much bottomed out and, if you play it right and watch it on a regular bases. It could yield me at least 15%. for the year. Where Kr yielded 45% in 2008

There are no TARP's for badly run supermarkets. GAP hasn't made a profit in years, has a ton of long term debt, and can't even shed more stores in this real estate environment. What's to like?

I think the new RED campaign will make a difference

on the bottom?

trend PS test

I think the reaction to earnings today was a bit overdone, and that makes this a prime time to take advantage of the panic and jump in. In the long-term people will get back to business as usual, when it comes to buying food at least, and GAP will still be there, ready to return to it's previous profitability.

Aquisition of Pathmark will come through to be a Plus for GAP.

The balance sheet requires a better job to lower the costs of sales on positive side we can see they are increase the market share. And they may perform well on future. People always like tea. Drinking tea market in US is extending

Do good over time.

The latest runup reports say may be the result of a short squeeze on news of a merger. Who is going to buy this company, though? With over a billion in debt and not turning a profit yet, and insiders are selling... Major corporations don't need this brand name and if they did I think around 4X the book is the limit. (Not to mention that half the equity here is relying on Goodwill of $460M and total equity currently stands at $203M) There's plenty of commercial space available and in any event this one going to be hard to give away. Especially, at this price. Short this.

This has to be the bottom.

thegreatsatan

A dominant player in its field with almost unlimited defensiveness