Economy in the pitts, unemployment up, time for the defense to take the field.
Any suggestions for interesting defensive plays?
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Here is an interesting small company (leaves plenty of room for growth) in
arguably the safest business in which to invest during a recession.
As one of the three safest-rated stocks tracked by TheStreet.com Ratings,
Village Super Market Inc. (VLGEA) would be an interesting choice if you
subscribing to the “L” (the recession will drag along for a painfully long
time), “U” (an extended trough in the economy and a slow recovery) or
“W” (a upward bounce and then another downturn before a real recovery
begins) views of the current downturn. Of more than 6,000 stocks on
TheStreet.com Ratings database, Village Super Market and only two other
companies can boast “overall” grades of A-plus on a scale that ranges from
A-plus to E-minus (stocks of companies in bankruptcy receive grades of F). As
for the supermarket stock’s safety, its “risk grade” of B-plus is the
highest possible, as TheStreet.com Ratings quantitative model is programmed to
assume that all equities have inherent degrees of risk and, therefore, no common
stock can receive a riskiness mark in the “A” range. But Village Super
Market’s three-year compound annual earnings per share growth of 42.6% helps
it earn the highest possible “reward grade” of A-plus. Investors jittery
about the economy’s future would be expected to gravitate to food retailers,
as that sector represents arguably the area least likely to be hurt by consumer
cutbacks. Trips to the supermarket can only be postponed for so long.
Village Super Market operates 25 ShopRite supermarkets in New Jersey and
Pennsylvania. It is part of a huge retailer-owned cooperate that, according to
Alexandra Biesada of the Hoover’s division of Dun
Ag commodities and ag stocks are starting to lift. I would pick up DBA here. DB
srs...its the best in my opinion,or the bgz
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