Village Super Market, Inc. (NASDAQ:VLGEA)

good fundamentals, cheap on EBIT and Book value basis, good profitability

Everyone wants to shop at shoprite.

Reasonable valuation, low debt.

growth and a recovering economy

motley value with growth

This account tracks the less exciting stocks from my watch list - companies that are easy to understand with clean balance sheets and good track records in relatively straight-forward industries.

Low debt/equity ratio, well management, consistent growth in earnings.

Yummy recession-proof food stuffs.

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.

Strong NJ Company

like Walmart did back in the day till now, Wakefern Food corp is going to be the next blow up! a must watch for future picks

This market will certainly see an increase. VLGEA is positioned to move due to their business model. Also, I feel their management style is solid during these unsteady times.

Co-op's are on the rise again, paying dividends to its members

4% increace most in 11 years. People need to eatone stop shopping for cheap food and such

Dependable NJ grocer should continue to grow.

Using a DCF @15%, g=5%, the future cash flows are worth $212M. Add that to the company's equity of $150M, and the company is worth $362M. This only leaves a 15% margin of safety over today's value. This is definitely not the best buy for a value investor right now, but for CAPS it is pretty good.

Conservative management/insider ownership, excellent P/E, steady growth.

A small cap value stock that pays dividends, with strong fundamentals, and largely unnoticed by Wall Street.

5 Star/Small cap/Pays dividend