rockvuecap
Long

Investing in Boring Businesses

NASDAQ:VLGEA   VILLAGE SUPER MARKET INC
VLGEA             is a boring business. It operates a chain of ShopRite groceries stores across PA, NJ             , and MD             . The company averages a modest 6% sales growth CAGR and has paid a dividend every year since its inception in 1965. I like investing in boring businesses. Stable, consistent returns on shareholder capital can have tremendous compounding effects.

VLGEA             sits on a ton of cash, has stable, consistent free cash flows with an unlevered FCF             10Y CAGR of 29%. Although the company faces stiff competition in an industry that already deals with narrow margins, they have flexibility and potential to get to their intrinsic business value of around $31 - $36/share.

I wrote a blog piece about them where I go into more detail, give it a read here: https://rockvuecapital.wordpress.com/2018/02/07/a-super-market-flushed-with-cash/

From a technical standpoint, if the stock can hold at this current support level of 22.50 - 23, I would venture to initiate a starter position with a stop loss right below that support. Any price acceleration from the bottom I would add on to my position.

Please let me know if I missed anything, or if I have any blind spots in my analysis, it really helps!

Thanks,
Brandon
I couldn't agree any more.
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rockvuecap IllusionsCatcher
@IllusionsCatcher, Thank you!
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@rockvuecap, You're welcome. Thank you for posting. May the roses in our gardens never fade. May our accounts grow obscenely fat.
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