What Happened When Alex Kenjeev Paid His Student Loan in Cash
Behind the Spritz: What Really Goes Into a Bottle of $100 Perfume
Safeway (SWY) finished Thursday's session down almost 2% to $21.62 after reporting fourth-quarter financial results. Trading volume was just under triple the 30-day average.
Safeway's bottom line came in at 62 cents per share, a number that was five pennies better than the overall projection, according to Reuters. We'll applaud that performance, but here's something that won't garner any accolades: same-store sales, without the effect of fuel transactions, went down 0.8%.
Speaking of fuel, the Reuters piece discusses the negative impact that lofty gasoline prices might have on the business. When that aspect is coupled with the decline in the same-store stat, concern for the thesis is the arguable result.
The 52-week low for the shares is $18.73 while the 52-week high is $27.04. The one-year chart plotting the narrow range is to some degree boring, although I'm sure many traders out there were able to make something exciting out of at least a few of the pullbacks and run-ups.
Safeway isn't cheap enough yet to be a buy, in my opinion. The company could have a difficult time in the current environment. Things could change, of course, but for now, I believe the risks outweigh the potential rewards. A trip back to the 52-week low would cause me to take another look at the stock.
Disclosure: I don't own any company mentioned; positions can change without notice.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
