Recent Buy – Kroger (KR, $KR)

GA

 

What’s up everyone? I haven’t made any purchases lately as the stock market has skyrocketed to another new high. Yikes!

Well, for that it’s probably safer to stay out of the market and wait for a small 5-10% correction? Maybe.

In Short: KR drop from $30 to $20 between Wednesday and Friday (today). $10 off $30. Sure, why not?

**Yes, I don’t even like KR that much, I’m a walmart girl. LOL 🙂 But if it’s on a big sale, I’m going to find a reason to buy it. hahah

Anyhow, I got some money, and Kroger dropped 20% since yesterday and today, so I’m dropping $2xx.xx to buy 10 shares. Which is yeilding at 2%, so I’ll get $4.8/year in dividend.

All and all, Kroger has dropped 31.2% from 52-week high. And lost 50% from all time high of $40.97. Yikes!! and Yikes!

First, why KR dropped 18% yesterday, and another 15% today?

  • Amazon is buying Whole Food at $42/share. Nice! if you own some WFM
  • KR writing down the earning for the year (no growth or slow growth).

Those two reasons are good enough to drive WMT, TGT, KR and other food market retailers way down. As Amazon has a strong loytalty program from Prime Members.

But I don’t think KR deserves that much punishment. I went to shop at KR yesterday, and the store was packed. I don’t see myself singing up for Prime membership anytime. I don’t see myself, not going into a grocery store and pick up my own fruits. People don’t know how to pick out the best fruits. One trip to a grocery store a week is okay, time to bond with Mr.W. So I’m playing down Amazon threat here.

Versus, my experience at WFM last month was stale. Their fruit selection was stale. Don’t get me started on their organic lettuces. I bought organic and I left it in the fridge for 2 months because I forgot about it, and the leaves was still green and crunchy. Hihi, so when people find out about their organic fraud… yikes!! But it’s the same for all organic or non-organic, buy the leaves and you’ll know what I’m talking about. But organic does has it niche. So, KR is strengthening their organic selection to cater to more picky eaters.

If you want to see more charts and table. this guy has a very nice write up about Recent Buy KR and Here is another write up.

 

I’m too lazy. But here is KR dividend history. There is some growth in dividend as payout is at 20%. We’ll see if it continue to grow at least at a cheated scale like from 0.12 to 0.1200009 or something.. haha.

Ex/Eff Date Type Cash Amount Declaration Date Record Date Payment Date
5/11/2017 Cash 0.12 3/9/2017 5/15/2017 6/1/2017
2/13/2017 Cash 0.12 1/17/2017 2/15/2017 3/1/2017
11/10/2016 Cash 0.12 9/16/2016 11/15/2016 12/1/2016
8/11/2016 Cash 0.12 6/23/2016 8/15/2016 9/1/2016
5/11/2016 Cash 0.105 3/10/2016 5/13/2016 6/1/2016
2/10/2016 Cash 0.105 1/20/2016 2/12/2016 3/1/2016
11/10/2015 Cash 0.105 9/17/2015 11/13/2015 12/1/2015
8/12/2015 Cash 0.21 6/29/2015 8/14/2015 9/1/2015
5/13/2015 Cash 0.185 3/12/2015 5/15/2015 6/1/2015
2/11/2015 Cash 0.185 1/20/2015 2/16/2015 3/1/2015
11/12/2014 Cash 0.185 9/18/2014 11/14/2014 12/1/2014
8/13/2014 Cash 0.165 6/26/2014 8/15/2014 9/1/2014
5/13/2014 Cash 0.165 3/13/2014 5/15/2014 6/1/2014
2/12/2014 Cash 0.165 1/17/2014 2/15/2014 3/1/2014
11/13/2013 Cash 0.165 9/19/2013 11/15/2013 12/1/2013
8/13/2013 Cash 0.15 6/27/2013 8/15/2013 9/1/2013

 

So, what do you think? Do you want to catch this falling knife? 

GA

10 Comments

  1. I also think this drop is overblown. Most Wall St. reactions are always knee jerk pops or drops and over time KR should mount a comeback. You are getting a nice stock at a pretty good deal. Nice way to take advantage of the drop.

    • Knee-jerk, it was, as the share price recovered some by the end of the trading day.
      It appears the short sellers benefit the most with the price yoyoing.

  2. I added a few shares today too. I hope the stock stays low through next week so that I can add some more shares.

    Kroger is a leader in grocery stores in my area. Peter Lynch preached to buy what you know. So until I see something that truly affects their fundamentals, I will continue adding shares.

    Nice post. Thanks for sharing!

    • “Buy what you know” what a great investment advice! Thanks!

      I agree that the Kroger here are doing well. It’d probably would take at lease 2 years before Amazon can do some damage. But in the meanwhile, some grocery store might be able to figure out the logistic of delivering.

      The online business and grocery might not work out too well though.

  3. I initiated a position on Friday as well. I think the reaction to the Amazon deal is overblown for a company like KR, that operates in many cities and small towns where there was no competition from Whole Foods. The price drop and increase in yield was just too juicy for me to continue laying off, so I rolled the dice.

    Take care and congrats on the buy!

    Bert

    • Great minds think alike. I’m glad there are quite a few of us making the buy in Friday instead of Thursday at the first sell off.

  4. Same story here, we own Ahold (owner of “stop and shop”, amongst others). Same massive drop in value, also think it is overblown. Added some new share today too. Smart move!

  5. Yeah I agree, KR got hit too hard with this Amazon thing going on. But that is good news for investors. They are still a solid company at a good price. I am thinking of starting a small position with them as well while they are down but haven’t gotten around to pulling the trigger yet.

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