Spartan Stores (SPTN)

Company

"As a progressive leader in the food distribution industry, Spartan Stores, based in Grand Rapids, Michigan, owns and operates 75 supermarkets and drugstores in Michigan and Ohio under the Family Fare Supermarkets, Glen’s Markets, and The Pharm banners. The company also supplies 40,000 private label and national brand products to over 330 independent grocery stores." (company website)

Buy

4-Mar-05. Spartan has been popping onto the radar screen ever since it broke the $5 level in December. The price has been rising steadily. Several times I've considered jumping in and thought better of it: Retail grocery — How thin are those margins? Upward trend — How long can it last? The moving average is practically a straight line, for crying out loud!

I finally bought in today when it looked like SPTN would push past $11. It's risky coming to the party so late; I hope I haven't arrived just in time for a correction.

26-Apr-05. Since I first bought SPTN it has spent its time consolidating between $10 and $11. But with yesterday's nice gain, buying pressure (+DI) crossed above selling pressure (-DI) again with nice volume (Whew!). I decided to add to my position today when SPTN broke through the upper Bollinger band, again on much higher-than-usual volume.

Sell

4-May-05. Spartan has been having a very hard time pushing above $11.50. When SPTN took a dip today after pushing at the barrier most of the morning I quickly closed my position.

Earnings are due out this afternoon after the market closes. If The Street's expectations are exceeded, SPTN will probably take off tomorrow and I'll be sorry I sold. On the other hand, if The Street is disappointed, SPTN will probably fall like a rock, and I'll be glad I sold today.

When I bought the additional shares of SPTN, the chart was actually one of those with all sorts of yellow flags waving. I'm probably lucky to have gotten a modest profit.