BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Great Atlantic & Pacific Tea Company eating itself alive]]>http://www.bloggingstocks.com/2007/10/24/great-atlantic-and-pacific-tea-company-eating-itself-alive/http://www.bloggingstocks.com/2007/10/24/great-atlantic-and-pacific-tea-company-eating-itself-alive/http://www.bloggingstocks.com/2007/10/24/great-atlantic-and-pacific-tea-company-eating-itself-alive/#commentsYou might also know the Great Atlantic & Pacific Tea Company (NYSE: GAP) as A&P grocery stores. The company also owns Food Basic, Food Emporium, and Super Fresh stores, and is in the process of acquiring Pathmark Stores. Founded in 1859, A& P is the nations oldest supermarket chain. But it may not live to see its 150th birthday in 2009. The company's operating losses continue to widen to $5.3 million for the previous quarter, despite the fact that revenues are up slightly.

For the year to date, same store sales are up about 2%. But the company only managed to post net income of $58.5 million due to $78.4 million in sales of Metro Inc. shares. Otherwise the company would be looking at much bigger losses. In an attempt to stop the money outflow, the company is in the process of discontinuing operations in the Midwest and the South, and will concentrate solely on its Northeast region. In order to build the brand in that market, A&P hopes to complete the acquisition of Pathmark Stores by the end of the year.

Oddly enough, investors may be buying A&P's "transformation strategy," which appears to be a fancy way of saying "we need to show a profit now." The stock closed recently at $30.48, up $0.71

Great Atlantic & Pacific Tea Company eating itself alive originally appeared on BloggingStocks on Wed, 24 Oct 2007 17:39:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>GAPpathmarkThe Great Atlantic and Pacific Tea CompanyTheGreatAtlanticAndPacificTeaCompanyWed, 24 Oct 2007 17:39:00 EST