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SWY, WINN, WFMI, SVU, SPTN, QKLS, Retail Supermarkets Stocks 10.49% undervalued

^{Published on 2011-01-26 12:00:59 - 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. SAFEWAY INC (NYSE:SWY), WINN-DIXIE STORES INC (NASDAQ:WINN), WHOLE FOODS MARKET INC (NASDAQ:WFMI), SUPERVALU INC (NYSE:SVU), SPARTAN STORES INC (NASDAQ:SPTN), QKL STORES INC (NASDAQ:QKLS) 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               
     SWY        SAFEWAY INC                         20.98          23.44          10.49% undervalued          Retail Supermarkets    
     WINN       WINN-DIXIE STORES INC               6.36           9.41           32.41% undervalued          Retail Supermarkets    
     WFMI       WHOLE FOODS MARKET INC              52.48          55.64          5.68% undervalued           Retail Supermarkets    
     SVU        SUPERVALU INC                       7.25           13.32          45.58% undervalued          Retail Supermarkets    
     SPTN       SPARTAN STORES INC                  14.81          18.45          19.72% undervalued          Retail Supermarkets    
     QKLS       QKL STORES INC                      3.25           4.05           19.81% undervalued          Retail Supermarkets    

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.

SAFEWAY INC (NYSE:SWY) - Safeway Inc., together with its subsidiaries, operates as a food and drug retailer in North America. The company operates stores that provide an array of grocery items, food, and general merchandise, as well as features specialty departments, such as bakery, delicatessen, floral, and pharmacy, as well as coffee shops and fuel centers. It also offers SELECT line of products that include baked goods, sparkling ciders and lemonades, salsas, whole bean coffees, frozen pizzas and entrees, and fresh and dry pastas and sauces, as well as an array of ice creams, hors d'oeuvres, and desserts; O ORGANICS line, which comprises milk, chicken, salads, juices, and entrees; Lucerne line of dairy products; Eating Right line of better-for-you products; Bright Green line of home care products; Total Pet Care line of pet foods and pet care products; and Value Red line of value-priced paper goods. As of December 31, 2009, Safeway operated approximately 1,725 stores in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area, and the Mid-Atlantic region, as well as British Columbia, Alberta and Manitoba/Saskatchewan. In addition, the company owns and operates GroceryWorks.com Operating Company, LLC, an online grocery channel, doing business under the names Safeway.com, Vons.com, and Genuardis.com; and Blackhawk Network Holdings, Inc., which provides third-party gift cards, prepaid cards, telecom cards, and sports and entertainment cards to North American retailers for sale to retail customers. Additionally, it engages in gift card businesses in the United Kingdom, France, Mexico, and Australia. Further, the company, through a 49% ownership interest in Casa Ley, S.A. de C.V. operates 156 food and general merchandise stores in Western Mexico. The company was formerly known as Safeway Stores, Incorporated and changed its name to Safeway Inc. in February 1990. Safeway was founded in 1915 and is based in Pleasanton, California.

WINN-DIXIE STORES INC (NASDAQ:WINN) - Winn-Dixie Stores, Inc. operates as a food retailer primarily under the Winn-Dixie banner in the southeastern United States. The companys stores offer grocery, meat, seafood, produce, deli, bakery, floral, health and beauty, and other general merchandise items. Its stores also provide pharmacy, liquor, and fuel products. The company offers national brands, as well as its own private-label products in its stores. As of June 24, 2009, it operated 515 stores in 5 states in the southeastern United States; and 401 pharmacies, 74 liquor stores, and 5 fuel centers at its stores. The company was founded in 1925 and is headquartered in Jacksonville, Florida.

WHOLE FOODS MARKET INC (NASDAQ:WFMI) - Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also offers specialty products, such as beer, wine, and cheese; and body care and educational products, such as books, as well as floral, pet, and household products. As of September 27, 2009, the company operated 284 stores comprising 273 stores in 38 U.S. states and the District of Columbia; 6 stores in Canada; and 5 stores in the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.

SUPERVALU INC (NYSE:SVU) - SUPERVALU INC., together with its subsidiaries, operates retail food stores in the United States. The companys stores offer general merchandise, health and beauty care, pharmacy, and fuel products under the under the Acme, Albertsons, Bristol Farms, Cub Foods, Farm Fresh, Hornbachers, Jewel-Osco, Lucky, Save-A-Lot, Shaws, Shop n Save, Shoppers Food & Pharmacy, and Star Market banners, as well as in-store pharmacies under the Osco and Sav-on banners. It operates 2,349 traditional and hard-discount retail food stores, including 855 licensed Save-A-Lot stores. The company also offers supply chain services, which include wholesale distribution of products to independent retailers, including single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military customers. In addition, it provides a suite of logistics services, including warehouse management, transportation, procurement, contract manufacturing, and logistics engineering and management services. The company was founded in 1871 and is based in Eden Prairie, Minnesota.

SPARTAN STORES INC (NASDAQ:SPTN) - Spartan Stores, Inc. operates as a grocery distributor and grocery retailer principally in Michigan and Indiana. The company operates in two segments, Distribution and Retail. The Distribution segment provides approximately 43,000 stock-keeping units, including dry groceries, produce, dairy products, meat, deli, bakery, frozen food, seafood, floral products, general merchandise, pharmacy, and health and beauty care items to approximately 375 independent grocery stores and 96 corporate-owned stores. It also offers approximately 3,200 private label grocery and general merchandise items, as well as provides value-added services, including site identification and market analyses, store planning and development, marketing, promotion, advertising, technology and information, accounting and tax preparation, human resource, coupon redemption, product reclamation, printing, category management, real estate, and construction management services. The Retail segment operates retail supermarkets under the banners comprising Glen's Markets, Family Fare Supermarkets, D&W Fresh Markets, Felpausch Food Centers, and VG's Food and Pharmacy. It operates approximately 96 retail supermarkets that offer dry groceries, produce, dairy products, meat, frozen food, seafood, floral products, general merchandise, beverages, tobacco products, health and beauty care products, delicatessen items, and bakery goods; and 66 supermarkets that offer pharmacy services. It also offers private label items, including its Spartan brand; Top Care, a health and beauty care brand label; Valu Time, a value brand; and Full Circle, a natural and organic brand. In addition, this segment operates 24 fuel centers under the banners of D&W Quick Stop, Family Fare Quick Stop, Glen's Quick Stop, Felpausch Quick Stop, and V.G.'s Quick Stop that offer refueling facilities, as well as a convenience store providing consumable products. The company was founded in 1917 and is based in Grand Rapids, Michigan.

QKL STORES INC (NASDAQ:QKLS) - QKL Stores Inc., through its subsidiaries, operates supermarkets in the Peoples Republic of China. The companys supermarkets offer grocery products, such as prepared or packaged foods, including instant foods, canned foods, packaged rice and wheat powder, and crackers and chips; rice and ground wheat; bottled water and beverages; cigarettes; and non-food items, which include cleaning products, cosmetics, and disposable razors. It also provides raw meat, cooked meat, seafood, noodles and pastas, milk, yogurt, eggs, packaged dumplings, breads, buns, and other self-prepared foods. In addition, the company offers clothing and shoes, books and stationery, bedding and home furnishings, office supplies, toys, and sporting goods, as well as electronics and household use items, such as irons, electric shavers, hair dryers, and massage machines. As of December 31, 2009, it operated 34 supermarkets and 2 department stores in the northeastern Peoples Republic of China and Inner Mongolia. The company is headquartered in Daqing, the Peoples Republic of China.

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