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$ACI undervalued. Bargain pricing currently.
$ACI We continue to generate strong free cash flow and are benefiting from better working capital trends. As a result, we finished the quarter with approximately $2.4 billion in cash and our net debt to adjusted EBITDA improved to 1.6 times on an LTM basis. During the second quarter, we also completed a refinancing at very attractive rates and paid off the 2020 Safeway notes with cash on hand. Together, those transactions will save the company approximately $52 million in annualized pre-tax interest expense.
Wowza. Hold for gold -> ‘Company to repurchase up to $300 million of the Company's common stock.’ $ACI
$ACI On October 14, 2020, the Company's Board of Directors authorized a new share repurchase program that allows the Company to repurchase up to $300 million of the Company's common stock. This program reflects the Company's continued confidence in its long-term outlook and approach to driving overall stockholder value. Purchases under the common stock repurchase program are anticipated to be made opportunistically at management's discretion
Very good #’s:
Second Quarter of Fiscal 2020 Highlights
Identical sales growth of 13.8%
Digital sales growth of 243%
Diluted net income per share of $0.49; Adjusted net income per share of $0.60
Net income of $284.5 million
Adjusted EBITDA of $948.4 million, an increase of 67% compared to the second quarter last year
Debt refinancing and paydown transactions to deliver approximately $52 million in annualized interest savings
$ACI
Decent beat on expected earnings.
Might be interesting should $15 hold.
It's fairly obvious that Albertsons Companies has gone mostly unnoticed since their IPO in June. As luck would have it EV mania was in full stride and if you weren't a tech company, or working on the next electric-powered anything then you were at best barely noticed. As Americas second largest grocery store chain, ACI has quietly sat in the shadows and has raked in cash, literally.
Not only have they done extremely well as their Q1 earnings prove they were recently awarded Grocery retailer of the year by Supermarket News on July 09 and again on October 16 by Store Brand Magazine.
In addition to their recent awards Albertsons bought an entire group of stores from a bankrupt east coast chain, and then declared a dividend. All within a week. Albertsons said its "strong and consistent levels of free cash flow" allows it to pay out the dividend. Albertsons 2020 has been adding consistent growth and investor value at a record breaking pace.
For those that haven't already done their Due Diligence on Albertsons Companies, they have increased same-store sales for 10 straight quarters. Yes, even before covid-19. If anything, they have only benefited from the national safety protocols that were put in place along with non-essential business closures, as they were seen as an essential business. Even work from home implementation by thousands of businesses has donated quite heavily to Albertsons Companies bottom line, and as of today it appears they will continue to do so well into 2021.
Forbes has recently stated that Coronavirus has permanently disrupted grocery retail, but in a positive way. The United States Census Bureau just released their Advanced Monthly Sales for Retail and Food Services report report which shows and verifies sales just continue to rise. FOR RELEASE AT 8:30 AM EDT, FRIDAY, OCTOBER 16, 2020
Not only are grocery store chains preparing for a 2nd wave of pandemic shopping now, but according to new data from Lendingtree American consumers’ average weekly grocery spending has increased by 17% since pre-pandemic times, up from $163 to $190.
Some Grocers report they're starting to see round two of panic shopping reported October 16.
“As of now what we are seeing is the start of the second wave of panic,” said Chris Mentzer, the director of operations for Rastelli Market Fresh in New Jersey. “Our customers keep telling me how they are looking for any type of freezer to purchase so they can start stocking up their homes now. Their main concern is meat." He explained that customers are mainly looking to buy and freeze beef and poultry — ground beef, steaks, roasts and all varieties of chicken.
"They're also starting to buy a lot of frozen meals and frozen pizzas," said Mentzer. "We are seeing anything that can be microwaved quickly or easily made in the oven for kids, fly off the shelves, as people are preparing for schools and colleges to be closed this winter — along with a run on dried goods and paper goods, as well.” Grocers are all too familiar with the increased sales of the upcoming holiday seasons, but when coupled with panic pandemic buying the demand on Grocers to keep adequate supply will be immense.
ACI seems to be prepared to benefit and prosper from the insane demands well into 2021. Remember, Albertsons 2020 is not the same company as they were in 2015 or even 2018. Under their new CEO debt has been reduced by Billions of dollars, that's with a (B), and by restructuring their long term debts while federal interest was at /near zero percent they have become a much leaner, and even more efficient company.
The current PEG ratio that is very popular and most referred to when measuring a company's growth tells a story of huge potential for ACI 2020 investors. With a PEG at 0.40 it's clear that the unnoticed stock is extremely undervalued. For perspective sake, if a company's PEG ratio is 1.0 that would indicate that the price of the stock accurately reflects its growth. So a PEG of 0.50 would indicate an extreme undervalue on share price. Yet, as stated above, ACI has a PEG of 0.40. It's well known that ACI shares are hugely discounted and it's even been reported that Albertsons is called an undervalued sleeper by BofA.
Couple all the recent positive catalysts with the fact that Albertsons Companies has seen sales rise over 20% in Q1 and a 275% jump in digital sales since Covid-19 and one can only assume that their earnings report scheduled for October 20, 2020 will be positive. Many investors have either completely overlooked ACI in their chase for the next EV stock to pop or have not done any due diligence on Albertsons Companies of 2020. However, Attentive Investors and Insiders seem to be certain that the path upwards for ACI is coming fast and the potential for $20 plus share price is not only obvious but long overdue.
Reports are indicating that there were more than several insider trading activities at ACI including Sankaran Vivek, who purchased 25,000 shares at the price of $14.74 back on Aug 14 two weeks after the Q1 results on July 27. He seems to be very confident in the fact that shares are still heavily undervalued and will move upwards to a fair value soon. Sankaran Vivek now owns 1,961,782 shares of Albertsons Companies Inc.
The consensus price target by 18 Analysts is $19.38. The high price target is $26.00. From today's entry price of $14.26 a share, this could be a very lucrative opportunity for the increasingly attentive investors that have done their homework on the Albertsons of 2020.
$ACI Albertsons Companies Announces First Common Stock Dividend
https://markets.businessinsider.com/news/stocks/albertsons-companies-announces-first-common-stock-dividend-1029681094
$ACI Credit Suisse Stick to Their Buy Rating for Albertsons Companies ACI
Credit Suisse (SIX:CSGN) analyst Judah Frommer maintained a Buy rating on Albertsons Companies on Monday, setting a price target of $18, which is approximately 11.73% above the present share price of $16.11.
Frommer expects Albertsons Companies to post earnings per share (EPS) of $0.14 for the third quarter of 2020.
The current consensus among 16 TipRanks analysts is for a Strong Buy rating of shares in Albertsons Companies, with an average price target of $19.64.
The analysts price targets range from a high of $26 to a low of $15.
In its latest earnings report, released on 02/29/2020, the company reported a quarterly revenue of $15.44 billion and a net profit of $324.5 million. The company's market cap is $7.3 billion.
According to TipRanks.com, Credit Suisse analyst Judah Frommer is currently ranked with 4 stars on a 0-5 stars ranking scale, with an average return of 10.3% and a 68.25% success rate.
Albertsons Companies Inc is a Delaware corporation that was incorporated on June 23, 2015. The Company is a food and drug retailer in the United States, with local presence and national scale. It operates approximately 2,205 stores across 33 states under 18 banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market and Carrs. It provides its customers with a service-oriented shopping experience, including convenient and value-added services through 1,698 pharmacies and 378 adjacent fuel centers. Its stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services. Various agricultural commodities constitute the principal raw materials used by the company in the manufacture of its food products.
https://www.investing.com/news/credit-suisse-stick-to-their-buy-rating-for-albertsons-companies-2243850
Albertsons Companies is set to rocket upwards on earnings scheduled for 10-20-2020
ACI is a BUY. Here's why, ACI trades at a discount to virtually every company in the grocery business.
1. Same store sales have increased for 10 straight quarters (meaning they were gaining market share even BEFORE Covid)
2. Many people cite debt as a concern, yet fail to mention that under the new CEO (2018) debt has been cut by BILLIONS (with a 'B). It also helps that federal interest rates are at/near 0% and $ACI just restructured some of their remaining long term debt to take advantage of it.
3. The popular PEG ratio used to measure a companies growth vs their earnings multiple currently sits at 0.40. To put that into perspective, a PEG ratio of 1.0 indicates that the price of the stock accurately reflects it's growth rate. 0.5 is considered VERY undervalued.
5. Digital sales for $ACI jumped 274% during the pandemic. ($KR for comparison only jumped 92%)
6. Top executives bought up shares is mid-August around $14.74. Insiders don't buy stock to LOSE money.
7. The current entry price for ACI is $14.26 and this stock could easily jump to $22 on earnings October 20,2020.
Get Jim Cramers take on ACI here ACI Earnings Incoming
Agreed and I never give up
If at first you don’t succeed- try again $ACI
Worth $20 probably. Sold 1/2 my $12.50 calls that expire next Friday. Let’s see how it goes.
Yes it is my Friend
$ACI for the win $$$
Very concerned. This simply can not gain any traction despite appearing to be a great stock.
If anyone has any thoughts, please continue to comment.....
BOL, looking to enter......
$ACI Albertsons buys back shares in opportunistic move and $.40 cents dividend is very attractive
NICE $ACI MONEY IS DA BAG !!!!! $ACI will be paying $.40 cents dividend confirmed https://www.barrons.com/articles/why-albertsons-is-a-buy-more-meals-at-home-and-the-stock-is-cheap-51600467478?st=qpzu4e3dougjbmc]
Sweet. Going up. time to make some money $ACI
Yes I am and still holding my Friend
Pete are you still in $ACI? My $15 calls expired last Friday out of the money but I bought $12.5 calls Friday @ $1 each. If things keep going like today I might make some money this time
Thank you for an article confirming the initiation of a $0.40 dividend.
BOL,
TOH
Why Albertsons Is a Buy: More Meals at Home and the Stock Is Cheap https://www.barrons.com/articles/why-albertsons-is-a-buy-more-meals-at-home-and-the-stock-is-cheap-51600467478?st=qpzu4e3dougjbmc
Huge buyback by ACI announced this morning. With the new CEO a highly talented exec from Pepsi, we have room to run. Working and consuming from home is the new norm.
$ACI Albertsons Companies partners with Phosphorus to offer at-home COVID-19 saliva test kits
No appointment, no line, no uncomfortable nasal swab
https://www.globenewswire.com/news-release/2020/09/09/2090841/0/en/Albertsons-Companies-partners-with-Phosphorus-to-offer-at-home-COVID-19-saliva-test-kits.html
Entered a position yesterday. Rrecognized seller exhaustion..
New 52 week lows each day over the last several days. Looks like a busted IPO? Should be doing better..
Albertsons Companies (ACI)
13.45 ? -0.09 (-0.66%)
Volume: 2,196,979 @09/04/20 7:35:59 PM EDT
Bid Ask Day's Range
- - 13.12 - 13.65
ACI Detailed Quote
you still in?
good repore'
re;
Today's 8k is refinancing over 1 billion in debt... Better interest rates and extending the terms by YEARS!! That should help the stock!
Today's 8k is refinancing over 1 billion in debt... Better interest rates and extending the terms by YEARS!! That should help the stock!
Thanks mick ... I sure do miss our Albertsons that we used to have.
Albertsons Companies (ACI)
14.99 ? 0.09 (0.60%)
Volume: 1,516,254 @08/14/20 7:50:44 PM EDT
Bid Ask Day's Range
- - 14.7 - 15.09
ACI Detailed Quote
Looks like there are Options available now too.
Anybody actually have an Albertsons? How do they rate?
DO YOUR OWN DD!!!!
$ACI earnings pps are good.P/E multiple of ~17x to our adjusted 2021 EPS estimate of $1.53."
re;
$ACI Albertsons initiated with an Outperform at Telsey Advisory Group; tgt $26
10:18 AM ET 7/21/20 | Briefing.com
Related Quotes
12:56 PM ET 7/21/20
Symbol Last % Chg
ACI
15.72 0.80%
Real time quote.
. Telsey Advisory Group initiates ACI with an Outperform and price target of $26.
Analyst Joseph Feldman said, "Albertsons is in the early stages of a transformation that should drive market share gains, earnings growth, and free cash flow for multiple years.
This, combined with the current attractive valuation, offers an opportunity for ACI shares to Outperform.
Albertsons should continue to benefit from the structural shift in consumer shopping behavior toward digital, increased at-home consumption, and ongoing consolidation.
Sustainable growth also should be driven by transformative initiatives, like enhanced merchandising,
renewed focus on loyalty, and new digital and omni-channel capabilities. The plan to leverage data analytics and alternative businesses should provide further upside.
These actions are likely to make Albertsons long-term targets-ID sales of 2.25%, EBITDA growth of 3%-5%, lower interest expense,
EPS growth of HSD, and total shareholder return (TSR) of double-digits-prove conservative.
Importantly, Albertsons has improved its balance sheet, with a reduced leverage ratio, and should generate solid free cash flow.
Albertsons, in our view, deserve a higher valuation, more like Kroger and other food retailers, given its transformation and stable outlook.
As such, our 12-month price target of $26 is based on applying an EV/EBITDA multiple of ~7x to our adjusted 2021 EBITDA of $3.2B.
This implies a P/E multiple of ~17x to our adjusted 2021 EPS estimate of $1.53."
I’m loaded up on calls that expire on the 21st. I’m excited to see how things play out with $ACI $$$
$ACI insiders bought lots of shares yesterday which is a good sign for us. I think she will pop hard next week
$ACI lots of insiders buying shares. I think she will pop next week
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