Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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?
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement