Albertsons was our least favorite name among the conventional grocers, and we see this decision by the company as an admission that the business isn't performing particularly well. |
At a minimum, we don't believe this quarter represents the consistently better-than-expected results that have supported Hershey's valuation in the recent past. |
We see these developments as tremendously useful in defeating the remaining lights class actions scattered around the country. |
We think the company is facing a challenging environment in which both of its major competitors -- Kroger and Safeway -- have made substantial improvements in price and quality. Albertson's must proceed with asset sales and use the proceeds to improve its store base and/or balance sheet. |