The Checkup
Last year in “Across the Street” (page 2), we spoke to Christopher Beck, Chief Investment Officer of Delaware Small Cap Value (DEVLX), who gave us two picks likely to benefit from a modestly growing economy. Here’s how they’ve fared since then.
Harris Teeter Supermarkets (NYSE: HTSI). With sales increasing every year for a decade, Harris Teeter could well secure the highest takeover price among grocers since the market downturn in 2007.
This past winter, the grocer hired JP Morgan to work on arranging its sale. Potential bidders include rival supermarket chains such as Publix (OTC: PUSH) and Dutch retailer Royal Ahold NV (NA: AH), which owns the Stop & Shop chain.
With some 208 stores mainly in the Carolinas and Virginia, Harris Teeter posted a 6 percent revenue gain in 2012 (to $4.5 billion) on a 9 percent jump in profits (to $100 million).
Shares of Harris Teeter are up 18 percent since recommendation.
Helix Energy Solutions Group (NYSE: HLX). As part of its exit from non-core businesses, Helix sold its US oil-and-gas subsidiary, Energy Resource Technology GOM, for $620 million in February. And it’s on the verge of selling both its pipe-laying ships, the Caesar and the Express, for $238 million.
Proceeds from the sales will be used to expand into higher-margin business, such as oil well-intervention and robotics. Earnings estimates average $1.03 per share for 2013, down from $1.08 in 2012, due mainly to write-offs related to the sales.
Helix Energy Solutions has returned 39 percent since last year.
Stock Talk
Add New Comments
You must be logged in to post to Stock Talk OR create an account