no thanks

12 mar 2021

this company is soon becoming garbage, their inventory sucked through the pandemic, promos are marked up to mark down, Walmart beats them on pricing every dam day, Albertsons has higher quality produce, Amazon Whole Foods will squeeze them out on product, client, business model & investments in the next few years. KR's POS tap-to-pay is cliche clubby & worthless going into the future. They're hard-nosed about their digital payment forms, and that's going to bite them in ass soon. They're outdated doing the bolt-on gas stations, will need to make big investments to add EV charging and then beg customers to stay in their club to get a lame rebate on fuel incentives few will rely on by 2025 on. They mark up their fuel to mark it down anyway, they're the biggest hustlers out there. No thanks, hombre. You can have this doomed K-Mart-like ghost town with a 2% dividend. You'll lose the divy once the street puts 2 & 2 together that people are sick of cooking at home and those who are cooking at home are buying bulk through Costco, Walmart.

KR is boxed in a corner forced to compete against Whole Foods & Albertsons - who also is at risk of get their valuations slashed as restaurants bounce back.

Could be forming a massive head & shoulders but I'm playing it like a weaker double-top in a regression channel. A lot of room to fall. Starting with cheap long dated puts Jan 2023 $30 strike