Trade Update: The Kroger Co. & Supervalu
On May 22, Jeff Macke reiterated his bullishness on the grocers. He recommended buying Supervalu (SVU) and Kroger (KR) on the dip.
Now, after Wal-Mart (WMT) announced it would curb growth in the U.S., shares of the grocers surged. Jeff said Wal-Mart has always been a credible threat to the low-margin grocers especially, and for the world’s largest retailer to say it’s going to back off is great news for them.
And last Friday, Jeff also recommended Coldwater Creek (CWTR), saying “the excitement level is picking up” for the specialty retailer. He repeated his call on Tuesday, saying he thought CWTR would still going higher.
Sure enough, the stock exploded on earnings and is up 21% over the past seven days. With such an incredible run, Jeff now says it’s time to take some profits off the table. He still loves Coldwater long term and would continue to buy on the dips.
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Trader disclosure: On June 1, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Najarian Owns (MU), (BTU), (AAPL),(KR), (SWY) Macke Owns (SWY) Finerman Owns (AAPL), (CAT), (HOV) Finerman's Firm Owns (DJ), (TOL), (USG), (WMT), (BJ); S&P Puts, Finerman's Firm & Finerman Own (TYC), (HD), (FLS); CNBC Is A Service Of NBC Universal And Dow Jones