You 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

MOST NOTEWORTHY: Some of today's notable downgrades were National City Corp (NCC), Aeroflex Inc (ARXX) and Compass Minerals International (CMP):

• Morgan Stanley cut National City Corp (NYSE: NCC) to Underweight from Equal-Weight with and $35 target to reflect increased losses on the company's remaining subprime loans and slower growth in the Midwest.

• AG Edwards downgraded Aeroflex Inc (NASDAQ: ARXX) to Sell from Buy to reflect the company's acquisition agreement.

• Matrix USA cut Compass Minerals Int'l (NYSE: CMP) to Strong Sell from Buy to reflect weak demand for deicing products.

OTHER DOWNGRADES:

• CIBC downgraded Pathmark Stores Inc (NASDAQ: PTMK) to Sector Perform from Outperformer based on the Great Atlantic & Pacific Tea Co (NYSE: GAP) acquisition.

• UBS cut Apria Healthcare Group Inc (NYSE: AHG) to Reduce from Neutral on valuation.

• Goldman Sachs downgraded Progressive Gaming International Corp (NASDAQ: PGIC) and Strategic Hotels & Resorts Inc (NYSE: BEE) to Sell from Neutral.

• Brean Murray cut Youbet.com (NASDAQ: UBET) to Hold from Buy based on increased competition concerns.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).