Yucaipa Companies

Considered them defensive actions, since when the scenario in the economy raises pessimistic, this sector is not as hard hit as the rest, and when a scenario in sight of growth and optimism in the economy, these actions do not participate equally in hikes. But those who operate markets know that this is not an exact science, there are no absolute truths, and when conditions change, what one yesterday was still as a rule should be left aside to follow the market rather than the rule. The S & P500 lost 60 percent in the past year lowering and rises 55% from the floor in March, GAP fell 90 percent in the latest decline in market and comes up 145% since March. GAP does not respond to the guidelines of market for the sector, and is having an interesting area of accumulation since the end of last year, with strong purchases of shares by insiders (executives). Operations of insiders for the past 12 months have been all purchases, for a total of 1.691.593 shares, both of its CEO, other executives and the company’s shareholders. There has been a strong buildup in July this year at around $4.30 per share. If the owner of the supermarket buys your product, I will be tempted to do it also. The liquidity of the company increased thanks to injections of cash by notes that the company issues maturing in 2015 for a value of $260 million to 97,385% of nominal value, with a yield of 12% and also by the issuance of USD 175 million shares favorite to 8% convertible to its subsidiaries Yucaipa Companies and its largest shareholderTengelmann.

This will cancel part of their credit debts, in addition to using it for General needs of the company. Tengelmann happens to have 38.6% and Yucaipa 27.6 per cent of the company. From the point of view of technical analysis, your graph is starting an upward trend, confirming oscillators divergence, positive relative force, its volume is indicating accumulation, its moving average 50 period, on the rise. Unless there is a strong decline in the market, I think that this company will have an interesting tour Bull, and we can sell it in a short time to more than 50% of its current value, we said to early in August, when it was trading at $5.62. GAP is currently worth $7.35, 31% of suba. GAP is one of our companies chosen for the portfolio of Global value, the report’s recommendation of actions of Wall Street that we launched two months ago.

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