Retail Consolidation to Continue?

Guest blogger Lance Jungmeyer chiming in ...

Wall Street is all atwitter at the thought of another retail buyout.

This story from the Cincinnati Post shows that traders are expecting a buyout of The Kroger Co., perhaps from a private-equity firm.

The article states that "some traders Tuesday were signaling their expectations that Kroger shares are due a strong run-up in the coming few weeks, buying call options that allow them to pay $30 and $35 for the stock by late June."

Kroger shares, trading at about $30 on Tuesday, haven't been close to $35 since 1999 when they topped out at $34.91