WinnDixie Stores Inc.  (WINN) Trade Now »     Rate WINN  -  Discuss WINN  -  Add to Watch List        

Winn-Dixie (WINN) CEO Peter Lynch admitted that the promotional programs implemented to attract and retain more customers backfired and Wall Street whole heartedly agreed. The shares took a 20% drubbing and closed at $12.79, a new historical low after fourth quarter results failed to meet expectations. The 'bloodletting' was another overreaction, as sellers all seemed to hit the exits at the same time, creating a nice opportunity for those buyers with a 'contrarian mentality'.

Winn Dixie (WINN) emerged from Chapter 11 in November of 2006. The new company consists of 520 Grocery Stores in the Southeastern US with locations in Florida, Alabama, Louisiana and Mississippi. The CEO is Peter Lynch--kind of ironic that he shares the same name as the Fidelity Magellan guru.

Here is a recovering grocer play.  This company has emerged from bankruptcy and seems to be heading in the right direction.  They still have a lot to do - they are remodeling all stores and closing unproductive ones.  But the price is right and the management is good.  I say take a shot.