It's Pleasing

to see people other than myself read my blog.

On Thursday, grocery stocks were strong while the market was bearish. Not sure if that was a one day move (.ie shorts covering), but on Friday KR and SWY stayed up, though not on a percentage basis as the S&P, and WFMI, which was up over a dollar at one point on Thursday, was down about 20 cents.

One would think that people need to eat and eat cheap so these companies should stay solvent. They do have debt, but it was issued at a very low rate, and who can borrow now like they did in the past? This bodes well for their franchise as their markets bar new entrants; of course, I will be looking at their margins (haven't yet). And they had union problem which they seem to have settled. In conclusion what I'm saying is that the main issues they encountered and investors fret about are in the past. Of course, they need to keep their debt ratios in check due to lack of liquidity out there....

But the government and the new one coming to power are looking at several ways of pumping the economy with new, freshly minted, greenbacks. And a percentage of that always flows into the grocery stores, but will it be at a profit.

I'm a shareholder.