Grocery store chain Winn Dixie Stores Inc. (NASDAQ: WINN) is emerging from bankruptcy with remodeled stores, better shopping conditions and product mix, improved customer service, and strict attention to cost management. Same store sales for 1Q 2008 are essentially flat, but the company posted a huge reduction in net loss, $800,000, down from $24.6 million net loss one year ago, a $23.8 million improvement. Net income for 1Q 2008 was $1.6 billion, up $11 million. Gross profits increased $22 million to $446.4 million, and the 30 remodeled stores have registered increased foot traffic. Winn Dixie plans to remodel a total of 75 stores in 2008.

Winn Dixie is also focusing on cost control as it emerges from Chapter 11. Administrative and promotional expenses have been slashed, as have costs at the company's distribution facilities. Winn Dixie still faces significant capital expenditures for store remodeling, at least $140 million. Legal costs to emerge from bankruptcy will run in the $5 million to $7 million range.

Even in the midst of a difficult and complex multi-year turnaround, Winn Dixie has acted to gain the goodwill of consumers and investors. Winn Dixie remodeled and reopened one of the first full-service grocery stores in lower east side New Orleans to help the city rebuild. The company is on the front lines in the fight against breast cancer, providing educational materials in its stores and sponsoring free mammograms for women without access to health care services.

The stock currently trades around $19. Given the success of the company's turnaround thus far, this is a stock for bargain hunters to investigate.

Winn Dixie (WINN) emerging from bankruptcy originally appeared on BloggingStocks on Tue, 20 Nov 2007 15:50:00 EST. Please see our terms for use of feeds.

Continue reading Time Inc. to honor the Big Easy

Time Inc. to honor the Big Easy originally appeared on BloggingStocks on Mon, 20 Aug 2007 17:33:00 EST. Please see our terms for use of feeds.

Miles of New Orleans remain pretty much the way Katrina left it two years ago -- with 123,000 owner-occupied homes and 80,000 rental units damaged or destroyed. And as one of the poorest regions of the U.S., it should come as no surprise that subprime mortgages have deeply penetrated its mortgage market.

How bad are subprime woes in New Orleans? According to Bloomberg News, about 21% of Louisiana's 60,000 subprime mortgages were at least 30 days past due in last year's fourth quarter, up from 15% in 2004, the year before Katrina. Only Mississippi and Michigan had higher subprime delinquency rates.

And the subprime woes are a great example of the widening income disparity in the U.S.. That's because subprime mortgage originators are transferring these bad mortgages at a deep discount to hedge funds -- whose wealthiest owner, James Simons, took home $1.7 billion last year. For example, H&R Block, Inc. (NYSE: HRB) agreed April 20 to sell its subprime mortgage lender, Option One, to Cerberus Capital Management LP, a New York private-equity and hedge-fund manager.

Continue reading New Orleans ravaged anew by subprime mortgage woes

New Orleans ravaged anew by subprime mortgage woes originally appeared on BloggingStocks on Fri, 11 May 2007 10:55:00 EST. Please see our terms for use of feeds.

Is the French Quarter ready for Starbucks? originally appeared on BloggingStocks on Tue, 08 May 2007 16:00:00 EST. Please see our terms for use of feeds.

While residential real estate languishes, commercial real estate has been particularly strong. In fact, there have been a variety of major deals lately, such as Blackstone's $36 billion purchase of Equity Office Properties (NYSE:EOP).

But, as prices rise, investors are looking for value plays. So, why not New Orleans?

That's the thinking of Equastone. Actually, this real estate firm specializes in tough situations and calls its approach "value-add" commercial real estate.

Its latest deal is for the Pan-American Life building, which is based in downtown and is 28 stories. The price tag is rumored to be about $50 million. The building is at 75% capacity and did not suffer much damage from Katrina.

The deal is certainly a positive sign for New Orleans. Actually, this may alert other funds to the opportunities in the city.

Interestingly enough, Equastone is not finished. The fund is in the process of buying another property in New Orleans.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.

Investors testing the waters in New Orleans originally appeared on BloggingStocks on Thu, 28 Dec 2006 09:56:00 EST. Please see our terms for use of feeds.