Winn Dixie (WINN) Up on Upgrade

Posted July 15, 2008

“WINN is finally recovering, and barring any new infectious bacterial outbreaks… the company’s stock should be pushing above $20 any day now.” — Stephanie Grimmett

by Stephanie Grimmett

Baltimore – (TFN): Roller coaster, perhaps? No, if a coaster had curves this sharp, its cars would crush one another as they upturned. Heart monitor print-out? Possibly, if the patient is going into seizures every few moments. Maybe the best illustration would be a downtown Baltimore street. But I’m not sure that image will communicate to those of you outside the Eastern U.S. exactly the amount of potholes, ripples and bottomless pits in this company’s stock chart.

Winn-Dixie (WINN:Nasdaq) has been bouncing all over the place. The stock peaked at $32 about a year ago, but it soon guttered to almost $15 four months later, after which it hit a moderate high before falling even farther. But it has been on an uptrend of late. That is, it was on one before “The Great Tomato Scare of 2008.” Winn-Dixie stores removed tomatoes and about 12% of the stock’s share price at the same time in June.

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But now WINN is finally recovering, and barring any new infectious bacterial outbreaks, which can’t really be predicted, but neither can tornadoes… Wait we do try to predict those. So I guess that analogy is rather pointless. But barring those pesky salmonella, the company’s stock should be pushing above $20 any day now.

WINN is up more than 14% just today, on news that the stock was upgraded by Friedman, Billings, Ramsey & Co. And the store has begun offering bioplastic water bottles (biodegradable plastic made from corn starch or other vegetable products). The move will help Winn Dixie in a bid to upgrade its image and appeal to the green-conscious consumer. Now let’s sit back and watch that stock dance.

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Posted by Stephanie Grimmett · Filed Under US Stocks and Markets