Opinions
The Panic-Proof Portfolio (Stockchase Research)
Village Super Market Inc
VLGEA-Q
PAST TOP PICK
Sep 06, 2022
(A Top Pick Mar 24/22, Down 10.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with VLGEA has triggered its stop at $22. To remain disciplined, we recommend covering the position at this time. This results in a net investment gain loss of 8%, when combined with the previous buy recommendations.
$21.890
Stock price when the opinion was issued
food stores
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TOP PICK
Stockchase Research Editor: Michael O'Reilly One of the sectors that has benefitted from the pandemic is that of grocers. VLGEA is a under-the-radar grocer that provides a solid divided, backed up by a safe payout ratio. The company just reported a 20% increase in revenues over the year and EPS was up 34%. Its 15.8 PE is half of the sector average and it trades at 1.1 times book. They recently acquired the Fairway Market assets, which included four stores in the NYC area and a distribution centre. We would trade this with a $20 stop-loss and look for upside towards $30 -- 22% potential. Yield 4.11% (Analysts’ price target is $26.90)
food stores
TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate VLGEA as a TOP PICK. A recent acquisition via bankruptcy auction of a rival competitor has boosted its presence on the east coast. It trades at 17x earnings compared to peers at 21x and pays a very good dividend, backed by a payout ratio under 75% of cash flow and continues to grow cash reserves. We would buy this with a stop loss at $20, looking to achieve $30 --upside potential over 30%. Yield 4.42%
food stores
TOP PICK
Stockchase Research Editor: Michael O’Reilly With the success of its recent acquisition being accretive to earnings, we again reiterate VLGEA as a TOP PICK. It trades at 12x earnings compared to peers at 16x and pays a very good dividend, backed by a payout ratio under 50% of cash flow and continues to grow cash reserves, while paying down debt and buying back shares. We recommend trailing up the stop (from $20) to $22, looking to achieve $30 --upside potential over 20%. Yield 4.1% (Analysts’ price target is $29.50)
food stores