Wednesday, August 6, 2014

Hot Asian Companies To Invest In 2015

Hot Asian Companies To Invest In 2015: Spartan Stores Inc.(SPTN)

Spartan Stores, Inc. operates as a grocery distributor and 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, as well as offers approximately 3,600 private brand grocery and general merchandise items. It also 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 97 retail superma rkets in Michigan under the Glen?s Markets, Family Fare Supermarkets, D&W Fresh Markets, VG?s Food and Pharmacy, and Valu Land names; and 25 fuel centers/convenience stores that offers refueling facilities, as well as immediately consumable products under the Glen?s Quick Stop, Family Fare Quick Stop, D&W Fresh Markets Quick Stop, and VG?s Quick Stop names. Its retail supermarkets 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, as well as pharmacy services. This segment also provides private brand items, including its Spartan brand; Fresh Selections; Top Care, a health and beauty care brand; Valu Time, a value brand; Full Circle, a natural and organic brand; and Paws, a pet supplies brand. The company was founded in 1917 and is headquartered in Grand Rapids, Michigan.

Advisors' Opinion! :
  • [By GURUFOCUS]

    Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:

    1. Avg. High Yield Price
    2. 20-Year DCF Price
    3. Avg. P/E Price
    4. Graham Number

    SYY is trading at a premium to all four valuations above. The stock is trading at a 37.5% premium to its calculated fair value of $26.26. SYY did not earn any Stars in this section.

    Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:

    1. Free Cash Flow Payout
    2. Debt To Total Capital
    3. Key Metrics
    4. Dividend Growth Rate
    5. Years of Div. Growth
    6. Rolling 4-yr Div. > 15%

    SYY earned two Stars in this section for 2.) and 3.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. SYY earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1970 and has increased its dividend payments for 43 consecutive years.

    Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:

    1. NPV MMA Diff.
    2. Years to > MMA

    The NPV MMA Diff. of the $282 is below the $500 target I look for in a stock that has increased dividends as long as SYY has. If SYY grows its dividend at 3.6% per year, it will take 3 years to equal a MMA yielding an estimated 20-year average rate of 3.41%. SYY earned a check for the Key Metric 'Years to >MMA' since its 3 years is le!

  • [By Ben Levisohn]

    …we believe the conventional grocers in our universe namely, Safeway, Supervalu, and SpartanNash (SPTN)are most at risk from Amazon.com’s expansion. Kroger should fare better due to its very strong price positioning and weighted-average market share positions. In addition, we believe that Kroger may actually end up as a net beneficiary of Amazon.com’s expansion, as grocers with lower market share positions (outside the top 5) are likely to exit/close, leaving more share to top players such as Kroger. The natural/organic specialty players are also better positioned to absorb Amazon.com’s expansion, with Whole Food Markets least at-risk due to its product mix (e.g. prepared foods), differentiated format, strong EBIT margins, and very strong balance sheet.

    source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/hot-asian-companies-to-invest-in-2015.html

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