This was a complex call, but I'm Reiterating my Buy rating for Safeway Inc. (NYSE: SWY) first recommended on February 20, 2009 at a price of $20.90. Safeway is likely to continue to benefit from rising food demand for cheaper food, as the pronounced recession in California -- one of the states hardest hit by the housing downturn -- compels citizens to belt-tighten and seek less expensive food options. The FY2009/FY2010 EPS estimates for SWY are $2.11 to $2.29.
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