Jan. 7 at 10:01 PM
$ACI I had this one my radar since the failed merger and pulled the trigger today. Added a rather monster position today - avg. 15.98 across a dozen buys and will buy again lower if given the chance. Forgetting ~6x EV/EBITDA and forward P/E of 7.3x they are sitting on
$14 billion in Real Estate (150% of current market cap) and could be looking at 600 million termination fee plus billions in damages from Kroger. Add to that the massive buyback (13% yield), potential take-private, cleaning up the non-performing stores and the growth in digital and the risk/reward is off the charts at
$16 and lower. Looking for
$24+ in 2026-27 plus the very well covered dividend. Downside is 14-15 at absolute worst.