Winn-Dixie improves its fortunes in Q4

The press release indicates that management is betting on a remodel strategy to drive future growth. Remodels can act as catalysts in retail. Consumers sometimes respond positively to a fresh experience. Winn-Dixie also knows the value of higher-margin private-label goods. I like how the company seems to find that aspect of its operations particularly important. In the current economy, corporate brands should be leveraged to the fullest extent possible.

Shares of Winn-Dixie were met with buying interest during yesterday's after-hours session, and I can see why. The company has further work to do in terms of increasing sales, but for the most part, the business appears to be on the right track (for now, at least).

I'd wait for a pullback to try a trade with this one. As The Wall Street Journal points out, the stock went a penny beyond its 52-week high at one point after the report came out. Although not always the case, hitting a 52-week high might mean that the stock has a lot of technical strength. Momentum players may want to watch Winn-Dixie.

Disclosure: I don't own any company mentioned; positions can change without notice.