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Author: Intellekt05 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2753  
Subject: DEG - Delhaize America Date: 6/14/2008 10:54 PM
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One of my favorite stocks, my company.
I am employed by Food Lion, subsidiary of DEG.

I have shares of stock in DEG through my 401(k). After looking over DEG I red thumbed it. Ironic huh? However, it is a large cap, growth stock. DEG has been underperforming the S&P 500 for quite some time.

However, many people gave it an “outperform”. Their P/E is low than industry (a value), and their financial strength is fairly sound. They continue to open stores all around the globe.

However, the industry has been hit by the recession pretty badly. Food Lion seems to think it’s their manager’s fault – heh. Bad 2nd quarter.

My pitch:
There are major problems with this company concerning efficiency. Just walking into one of their grocery stores (Food Lion, Bloom, Harvey’s, and Bottom Dollar) will show how far behind the industry they are. They do nothing to advance sales, operations, etc.

Food Lion, their biggest subsidiary (from experience) refuses to address shrink issues because they refuse to believe that geographic location influences sales, customer preference, among other things – mostly theft. They have a lot of unsatisfied customers.

They have the money, and certainly the potential, but their upper level management is almost completely incompetent.

RDK (Harris Teeter) will far outperform them, though you can’t really consider them competition because they sell to a completely different customer base, and they are a small-cap value stock.

Any thoughts?
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