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KR, DEG, CBD, AHONY, CEDC, STZ, Retail Supermarkets Stocks 8.68% undervalued

^{Published on 2011-01-26 12:01:14 - WOPRAI}
 

January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Retail Supermarkets sector and these stocks are the most undervalued as of today. KROGER CO (NYSE:KR), DELHAIZE GROUP - SPONS ADR (NYSE:DEG), CIA BRASILEIRA-SP ADR PREF A (NYSE:CBD), KONINKLIJKE AHOLD-SP ADR (OTC:AHONY), CENTRAL EURO DISTRIBUTION CP (NASDAQ:CEDC), CONSTELLATION BRANDS INC-A (NYSE:STZ) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     KR         KROGER CO                           21.65          23.71          8.68% undervalued           Retail Supermarkets    
     DEG        DELHAIZE GROUP - SPONS ADR          79.05          85.17          7.18% undervalued           Retail Supermarkets    
     CBD        CIA BRASILEIRA-SP ADR PREF A        40.65          41.56          2.20% undervalued           Retail Supermarkets    
     AHONY      KONINKLIJKE AHOLD-SP ADR            13.41          28.05          52.19% undervalued          Retail Supermarkets    
     CEDC       CENTRAL EURO DISTRIBUTION CP        24.86          32.27          22.96% undervalued          Beverages - Alcoholic  
     STZ        CONSTELLATION BRANDS INC-A          18.92          19.56          3.25% undervalued           Beverages - Alcoholic  

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

KROGER CO (NYSE:KR) - The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets. It operates supermarkets in various formats. The companys combination food and drug stores (combo stores) that operate as food stores consist of natural food and organic sections, pharmacies, general merchandise, pet centers, and perishables, such as fresh seafood and organic produce. The Kroger Co.s multi-department stores sell general merchandise items comprising apparel, home fashion and furnishings, electronics, automotive products, toys, and fine jewelry. The companys marketplace stores offer full-service grocery and pharmacy departments, as well as general merchandise area that includes outdoor living products, electronics, home goods, and toys. Its price impact warehouse stores offer grocery, health, and beauty care items. These stores also offer meat, dairy, baked goods, and fresh produce items. In addition, the company operates fuel centers; and convenience stores that offer limited assortment of staple food items and general merchandise, as well as sell gasoline. As of March 9, 2010, it operated 2,468 supermarket and multi-department stores under two dozen banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith's, Fry's, Fry's Marketplace, Dillons, QFC, and City Market, of which 893 had fuel centers, as well as operated 777 convenience stores and 374 fine jewelry stores. The Kroger Co. has a strategic alliance with U.S. Bank to offer a suite of payment products. The company was founded in 1883 and is headquartered in Cincinnati, Ohio.

DELHAIZE GROUP - SPONS ADR (NYSE:DEG) - Delhaize Group SA, together with its subsidiaries, operates food supermarkets in North America, Europe, and southeast Asia. The company also engages in food wholesaling to affiliated stores in its sales network; and in retailing of non-food products, such as pet products. Its sales network also includes other store formats, such as proximity stores and specialty stores. At of December 31, 2008, the companys sales network consisted of 2,673 stores. Delhaize Group SA was founded in 1867 and is based in Brussels, Belgium.

CIA BRASILEIRA-SP ADR PREF A (NYSE:CBD) - Companhia Brasileira de Distribuicao, together with its subsidiaries, operates as a retailer and wholesaler of food products, bazaar articles, clothing, home appliances, and other products through its chain of hypermarkets, supermarkets, specialized and department stores, convenience stores, and the Internet in Brazil. The company operates its stores under the Pao de Acucar, CompreBem, Extra, Extra Eletro, Extra Perto, Extra Facil, Extra.com, Sendas, Assai, and Ponto Frio e PontoFrio.com names. As of December 31, 2009, it operated 1,080 stores. The company was founded in 1948 and is headquartered in Sao Paulo, Brazil.

KONINKLIJKE AHOLD-SP ADR (OTC:AHONY) - Koninklijke Ahold N.V., together with its subsidiaries, owns and operates supermarkets in the United States and Europe. It operates retail food stores, superstores, hypermarkets, supermarkets, home shopping, and convenience stores under the Stop & Shop/Giant-Landover, Giant-Carlisle, Albert Heijn, and Albert/Hypernova names. The company also engages in the operation of specialty stores, drugstores, and wine and liquor stores under the Etos and Gall & Gall names. In addition, it provides online grocery delivery services. Further, the company finances, develops, and manages store sites and shopping centers in support of its retail operations. As of December 28, 2008, it operated 2,897 retail locations, as well as 919 real estate properties. The company was founded in 1887 and is headquartered in Amsterdam, the Netherlands with additional offices in the United States and Switzerland.

CENTRAL EURO DISTRIBUTION CP (NASDAQ:CEDC) - Central European Distribution Corporation (CEDC) and its subsidiaries produce, distribute, import, and export alcoholic beverages primarily in Poland, Hungary, and the Russian Federation. The company produces vodka with a brand portfolio that includes Absolwent, Zubrwka, Bols, Palace, Soplica, Green Mark, Parliament, Zhuravli, and Royal brands. It distributes approximately 700 brands of alcoholic beverages consisting of various alcoholic products, including spirits, wines, and beers, as well as non-alcoholic beverages. The company distributes its products directly to off-trade establishments, such as small and medium-size retail outlets, petrol stations, duty free stores, supermarkets, and hypermarkets; and on-trade locations, including bars, nightclubs, hotels, and restaurants. As of December 31, 2009, CEDC operated 18 distribution centers and 124 satellite branches located throughout Poland. It imports spirits, wines, and beers of various brands, including Jim Beam Bourbon, Campari, Jagermeister, Remy Martin Cognac, Guinness, Corona, Budvar, E&J Gallo wines, Carlo Rossi wines, Sutter Home wines, Metaxa Brandy, Sierra Tequila, Teachers Whisky, Cinzano, Old Smuggler, Grants Whisky, and Concha y Toro wines. CEDC exports its products principally to the United States, Japan, the United Kingdom, and France. The company was founded in 1990 and is based Bala Cynwyd, Pennsylvania.

CONSTELLATION BRANDS INC-A (NYSE:STZ) - Constellation Brands, Inc., together with its subsidiaries, engages in the production and marketing of beverage alcohol brands in wine, spirits, and imported beer categories. The company operates through Constellation Wines and Crown Imports divisions. The Constellation Wines division produces table wines, sparkling wines, and dessert wines. It offers wine under the brand names of Robert Mondavi Brands, Franciscan Estate, Wild Horse, Simi, Toasted Head, Estancia, Clos du Bois, Blackstone, Ravenswood, Black Box, Vendange, Arbor Mist, Inniskillin, Kim Crawford, Ruffino, Nobilo, Jackson-Triggs, Alice White, Hardys, Banrock Station, Stowells, and Kumala, as well as provides brandy/cognac product under Paul Masson Grande Amber Brandy brand name. This division also produces spirits, wine kits, beverage alcohol refreshment drinks, and other related products and services, as well as distributes wine, distilled spirits, cider, beer, RTDs, and soft drinks. The Crown Imports division imports, markets, and sells Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, St. Pauli Girl, and Tsingtao imported beer brands in the United States. The company distributes its products through wholesale distributors, and state and provincial alcoholic beverage control agencies; and directly to off-premise accounts, such as retail chains and on-premise accounts, including pubs, clubs, hotels, restaurants, and wholesalers. It sells its products principally in the United States, Canada, the United Kingdom, Australia, and New Zealand. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

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