Image source: Getty Images.
Shares of grocer Supervalu Inc. (NYSE: SVU) fell 14% in October, according to data provided by
Supervalu announced the sale of Save-A-Lot for $1.365 billion in cash to Onex Corporation. The money will be used to repay at least $750 million in debt on a term loan.
Quarterly results didn't leave much for investors to be excited about either. Sales from continuing operations fell 4.8% to $3.87 billion, and net income was just $31 million, or $0.11 per share.
Everything from wholesale to retail sales was down in the quarter as Supervalu's business continues to deteriorate. And that deterioration puts a lot of focus on the $2.2 billion in debt on the balance sheet at the end of last quarter, leaving a lot of risk even after a debt reduction from the Save-A-Lot sale. I just don't see any reason to be bullish on the stock today considering the debt and a decline in operations as a whole.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them,