Stockchase Opinions

Paul Harris, CFA Ahold (Amsterdam Exchange) AH-AEX TOP PICK Feb 25, 2005

Had some accounting issues in the past. All new management. The food services business is a good business. Have lots of operating leverage. Feels they will be able to increase their net margins from 1% to 3% which would double their earnings. Have cleared out a lot of non-core assets.
$9.170

Stock price when the opinion was issued

food stores
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TOP PICK
A Dutch company. European business does very well. US has been lagging. Generates a lot of free cash flow. Trades at about 8.5 X free cash flow yield. Continuing to bring down their debt level. Expecting they will move from junk bond status to investment-grade. There are a lot of catalysts for this company.
TOP PICK
Throws off lots of free cash. Aggressively paying down their debt. Have been junk bond status but should be investment-grade bonds by the end of this year.
TOP PICK
(A Top Pick Aug 15/06. Up 13.5%.) Good balance sheet and throwing off lots of cash. Feels their debt will move into triple B category.
PAST TOP PICK
(A Top Pick Aug 15/06. Up 8.7%.) Had a lot of trouble over accounting scandals during an acquisition. New management is re-structuring. Generates free cash in excess of 9%. Still likes. Cheap.
PAST TOP PICK
(A Top Pick Aug 22/06. Up 9.2%.) This was a restructuring story. Expect they will have a lot more cash in the next little while.
TOP PICK
A food services company. Almost went bankrupt several years ago over some accounting issues. Has been restructured with new management. Thinks it will do well over the next little while.
PAST TOP PICK
(A Top Pick Oct 406. Up 11.2%.) Throws off lots of free cash flow. Is going to be upgraded to investment-grade in the next little while. Expect it will be taken over.
BUY
Doing a 5 for 4 reverse stock split as well as issuing a special dividend. A seriously good company.
COMMENT
Have a pretty good grip on their US business and are looking to grow it. Have some cash now. Expect there will be some acquisitions. Prefers Tesco, a UK company.
COMMENT
(Amsterdam exchange.) Food stores. Very good company. Own a large franchise in the US and a good franchise in Europe. Margins are getting better. Better to look at things in Canada where you don't have the currency risk.