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Evaluation of the Price Proposed for SVU’s Shares: We believe that $6.00 per share would be a fair and reasonable offer by a private equity firm (pursuant to Barclays analyst Meredith Adler’s June research piece on SVU) for SUPERVALU’s (SVU) shares if a PE firm was to acquire SVU in whole. READ MORE

 SHORT: Exelon (EXC)

In our August 13th report evaluating Exelon’s Q2 2012 performance, we were amused at the alliterative alphabet soup of adjustments (EXC’s Q2 2012 adjustment letter footnotes” went up to “J”) in Exelon’s Q2 2012 results. Despite the fact that Natural Gas Prices have skyrocketed from $1.89/MCF in April to $3.70 as of November 1st, Exelon served up another steaming hot bowl of alphabet soup adjustment excuses to investors with regards to its financial performance. READ MORE

 FULL REPORT: Sprint Nextel (S)

We are reiterating our “Accumulate” rating on Sprint Nextel and increasing our Fair Value share price to $8.02, 43% above current levels. We expect to see Sprint generate EPS of $1.08 in 2016 and to increase EPS by at least 16% annually over the following three years. We are recommending Sprint Nextel to investors with an aggressive risk tolerance and interest in a well-known telecom firm that is making progress with its corporate turn-around. READ MORE

 International Business Machines Corporation (IBM)

Last year, self-proclaimed technophobe Warren Buffett announced that Berkshire Hathaway (BRK.B, BRK.A) had taken a position in International Business Machines Corporation (IBM). We can understand why if Berkshire was going to begin to allocate assets towards the technology sector, it would begin with IBM. As everyone knows, IBM was the once-great computer company that was revived in the 1990s by Lou Gerstner. While IBM may have lost the PC war, its reorientation toward the Internet and strategic IT Services and Solutions helped the company get its groove back. READ MORE


In August, we analyzed and evaluated SUPERVALU Inc (SVU) in the wake of its poor results. We concluded that although it had seen a regression in Q1 2013 versus its FY 2012 levels, it was a better retail turnaround candidate than RadioShack (RSH). We were disappointed in SVU’s stock performance in July due to its disappointing financial results. At the same time, we were pleased that we had avoided a larger loss if we had invested in RadioShack.  READ MORE

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