Winn-Dixie Stores, Inc. (WINN)

Company's market is dominated by Publix on the upscale side and WalMart on the economy side. While they are improving it's just too little too late

Grocery stores are where the money is at!

Suffering from big debt load, discounters and WMT. Avoid.

This is an insane valuation. The com[any has over 500 stores and zero debt, The company's gross margin expanded 140 basis points durung its second quarter to 28.1%. EBITDA for 2009 is expected to be between $110-$125 million and guidance was kept the same. At a $492 million market cap, this is a steal for any suitor that wishes to expand its footprint in the southeast region of the US. FTN Midwest just upgraded the shares today. Look for the shorts to start covering to book some profits and an ensuing dead cat bounce at the very least.

Publix is going to eat its breakfast.

Reloading. Even strong grocery stores are being squeezed right now - their costs are higher and their customers have less money to spend. WINN is a legacy grocer with older stores in less prime locations, with weaker management and a damaged brand. The CEO previously ran Albertson's and Cub Foods into the ground before taking his current misleadership role. Kroger, Wal-Mart, Publix, Royal Ahold, Sam's Club, etc. are all in better situations and will eat Winn-Dixie alive in the current economic climate.

Aren't grocery stores supposed to be "defensive" stocks?

I think this turn-around situation is going as planned.

Winn-Dixie is a grocery chain operating 521 stores in the southeastern United States. The company declared bankruptcy in 2006 and recently re-emerged with half the store count, a new management team, new business plan, and a clean balance sheet.

Why I like it:

• If Winn-Dixie can just be an average grocer (even below-average), it could be an outstanding investment (multi-bagger)

• New management team led by Peter Lynch (not the investing legend!) is smart, experienced, and aligned with shareholders (Lynch was the former COO at Albertson's; he owns nearly 1 million shares of Winn-Dixie, half-of-which vests if certain performance benchmarks are reached)

• Company is aggressively remodeling its stores (store-in-store concepts, nicer bathrooms, expanded bakery and deli sections, better displays); should have 50% of stores remodeled by 2010; so far, remodeled stores are showing 10% same-store sales comparisons

• Real estate locations would be valuable to an acquiring chain

• Limited downside, huge upside potential

stores still have personnel problems ,lack of positive attitude and management

awww its only money, you cant take it all with ya

This is a reasonable turn around situation. In the last quarter management beat earnings estimates and was able to increase guidance going forward.

Everyone has to eat and this southeast company just came out of bankrupty. They need to get a handle on some of the service aspects of their stores, but their prices are right.

winn dixie stocks and is trying their best

Grocery Store Chain that operates 521 stores in South East. Strong 4th quarter earnings reported, however, also reported that it expected loss in earnings in coming year due its turnaround plan (including remodeling of stores) after emerging from bankruptcy last november. Lost $6

Debt-free amidst a bullish industry.

Leaner, more efficient, trusted name in the South.

went too far too quck

Chapter 22 candidate.