What's Behind SUPERVALU's Upward Spike This Week?


SUPERVALU is a stock long looked upon with pessimism. So far, the grocery chain is down 70% for the year, though this week, the stock came up 16% on the news that a private equity firm may buy a couple of its largest chains before the year's end. Is this the sign of a company on the mend? In this video, Motley Fool analyst John Reeves tells us why the company's huge amount of debt, among other things, means he isn't changing his view on this company one bit.

While the story of SUPERVALU may not have a happy ending, many have been leery of grocery chains, in general, due to the industry's chronically low margins; but one brand is proving grocer bears wrong. It's hard to believe that a grocery store could book investors more than 30 times their initial investment, but that's just what Whole Foods has done for those who saw the organic trend coming some 20 years ago. However, it may not be too late to participate in the long-term growth of this organic foods powerhouse. In this brand-new premium report on the company, we walk through the key must-know items for every Whole Foods investor, including the main opportunities and threats facing the company. We're also providing a full year of regular analyst updates to go with it, so make sure to claim your copy today by clicking here.

The article What's Behind SUPERVALU's Upward Spike This Week? originally appeared on Fool.com.

John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Supervalu. Motley Fool newsletter services recommend Supervalu. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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