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Sally Jones
Sally Jones
Articles (580) 

SEC-Embattled SAC’s Steven Cohen's Huge Increase - SVU

April 02, 2013 | About:

As of March 28, 2013, one of the most successful, intuitive traders in the world, SAC Capital Advisors Steve Cohen increased his Supervalu Inc. (NYSE:SVU) position by 42,893.23%, putting his current shares at 10,791,300. The current price is $4.88, with a change from average down 3%. SUPERVALU Inc. is changing its core retail business to include wholesale activities, and the company believes it can generate $17 billion annually by doing so. To that end, last week the company announced plans to reduce its national workforce by an estimated 1,100 positions.

“The decision to reduce our workforce, although difficult because of the impacts to our people, is the necessary next step in the rebuilding of our business,” said Sam Duncan, president and CEO of SUPERVALU Inc.

The workforce reduction announcement follows SUPERVALU’s decision to downsize and refocus as a retailer-wholesaler, with the recent sale of Albertsons, Jewel-Osco, Acme, and Shaw’s and Star Market stores, as well as its pharmacies.

The buyer is AB Acquisition LLC, an affiliate of an investor consortium led by Cerberus Capital Management. The stock deal, completed on March 21, 2013, is valued at $3.3 billion, including $100 million in cash and $3.2 billion in debt assumption. In a seamless transfer, the new SUPERVALU is already doing business. The restructured company expects to generate more than $17 billion in revenues annually.

SUPERVALU President and CEO Sam Duncan stated, “The successful completion of this transaction marks a significant milestone for SUPERVALU and our shareholders, customers and employees. As we move forward, SUPERVALU will continue as one of the largest wholesale grocery providers in America serving nearly 2,000 independent retailers in 43 states; we plan to continue growing our hard discount Save-A-Lot format that includes over 1,300 stores nationwide; and we will operate five, strong regional retail banners. I am pleased to be leading SUPERVALU during this time of change and strongly believe there is an exciting future ahead for us.”

Dedicated to operating a more focused, efficient grocery business, SUPERVALU Inc. is currently one of the largest companies in the U.S. grocery channel. With SVU up 95% year to date, SUPERVALU Inc. has a market cap of $1.04 billion, a P/E of 38.2 and a P/S of 0.0298.

Steven Cohen’s Holding History

With a reputation for embracing chaos, Guru Stevie Cohen is considered highly intuitive as a hedge fund investor. Of his currently SEC-embattled SAC Capital Advisors, he neither denies nor admits to allegations about his traders. He himself has been accused of no wrongdoing.

As of April 1, 2013, SAC Capital’s portfolio shows 1,585 stocks at a total value of $20.3 billion, and a quarter-over-quarter turnover of 42%.

Steven Cohen’s top buys, sells and holdings:

Other Gurus have significantly reduced or sold out SVU since quarter ending Dec. 31, 2012.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.6/5 (5 votes)


Mocheng premium member - 4 years ago
Nice read.

Hard to believe a company with $34 billion dollars in Revenue with only $1 billion dollar in marketcap. This stock is risky, but the pay off is huge if you have the cash to take the risk.

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