Is SUPERVALU INC. (SVU) Worthy of an Investment?

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Finally, the company decided to sell off some of its brands so that it can remain focused on its core operations. This might help it enhance its wholesale operations in a better manner. However, with poor strategies and inefficient cost control measures, it is difficult to be upbeat about the company yet.

The Bottom Line

Along with a lackluster performance, the grocer cancelled its dividends and withdrew its outlook for the year. These are indications enough for a weak and a drowning company. The company has not been able to adapt itself with the changing needs of customers leading to a loss in sales. Its mismanagement of costs has also been a matter of concern.

Additionally, it has been falling weak against competitors. I believe there are no hopes for the company even though it has been shrinking its size in order to become efficient. A prudent investor will always stay away from such a retailer.

The article Is This Stock Worthy of an Investment? originally appeared on Fool.com and is written by Himanshu Poddar.

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