Hey guys thanks for joining me for an impromptu video as you know we’ve been talking about a. Lot of things has to do with the pandemic particularly companies that are working towards a vaccine and how that’s really affected our investment strategy and whether we. Should be investing in these companies today we’re in talk about something in some ways very different in that we’re not talking about vaccine companies. But it’s also directly related to the pandemic I believe and that is the fact that Albertsons companies is filing for an initial public offering to give you some details. On the IPO they’re looking to sell 65 point million shares somewhere in a range of 18 to 20 dollars per. Share you may not be familiar with Albertsons companies but I’m sure you’re probably familiar with the name Safeway in Safeway of course is a grocery store and Albertsons runs a variety of grocery.
Stores under different names safely probably being the most popular or most common name that you’ve heard of they also run a milk it company called plated and so when. You start thinking about investing in grocery stores you know historically grocery stores have had very low margins so that has always been a factor however what we. Do know is that the pandemic has changed in the short term which we’re guessing short term that people you know have shopped a lot more in grocery stores but will. That really hold and that’ll be the million-dollar question however what we do know is that there are some other things that these companies these grocery stores have done differently because.
Of the pandemic and how that might actually lead to increased people going. To the grocery store for instance you know things like curbside pickup have become a lot more popular in this time in you. We know that some one of the biggest drivers of profits and grocery stores has been in. The delis of the bakeries again where they’re making foods and what can now possibly done. Is you can order the food you can drive up to the curbside pick it up and it’s not that much different than going through a fast-food drive-through another thing is a lot of.
People are using milk it programs and so that the fact that Albertsons has plated this is another opportunity for growth I. Guess what’s also important too here and again you’ll always take this with a grain of salt is that the company has you know which I believe is probably accurate.
They are experiencing a lot of momentum and that they really believe that they’re gonna continue to deliver profitable growth going forward there’s no question that the. Pandemic has resulted in higher usage of grocery stores and there’s been a lot of demand for. Food so when you start thinking about all of the things. That grocery stores are doing to really improve the customer experience there is an opportunity that. Perhaps that long-term trends will change you know so it may be as simple that people that in the past we’re going out to.
Eat three or four times a week maybe are now only going out one or two times. A week because again they’re going to the grocery store to get most of their foods they find that it’s cheaper they find that the experience has been. Easier so there’s a lot of things to consider why investing. In a grocery store could be an option something we. Definitely want to keep an eye on I just wanted to share this with my community because they’re gonna know we’ve been focusing a lot in.
Investment when it comes to the pandemic and I’d really believe that grocery stores and in case. Of an IPO which always tends to bring a little extra buzz when you see are those three little letters that it would be something important to talk about and maybe.
Give you a little bit of information to start so that you could look into it a little bit more anyways I hope you. Like this video and if you did please hit that. Like button and if you haven’t subscribed definitely subscribe I would love to have you. Part of the community as always I hope that we can take little easy steps and making big improvements in our lives thank you again for watching and until next time. Have a great day.