Fleming Companies -- Deutsche Banc Alex. Brown's Jonathan Ziegler Initiates Research Coverage

Apr 20, 2001, 01:00 ET from Deutsche Banc Alex. Brown

    NEW YORK, April 20 /PRNewswire Interactive News Release/ -- Deutsche Banc
 Alex. Brown analyst Jonathan Ziegler yesterday initiated coverage on shares of
 Fleming Companies, Inc. (NYSE:   FLM)($28.65) with a BUY investment rating.
     Ziegler said, "In our view, the market does not fully comprehend the
 changing dynamics at the company and we believe that at current levels,
 Fleming's stock represents an opportunity for investors to reap substantial
 rewards."
 
     Ziegler's positive investment thesis is based on the following factors:
 
     *  The company has largely completed a strategic repositioning that lowers
        the cost of goods sold and the cost of distribution services,
        diversifies the customer base, and rationalizes the retail operations.
 
     *  The strategic alliance with Kmart makes Fleming the sole food supplier
        at all current and future Super Kmart and Kmart discount stores. This
        should enable Fleming to gain market share, leverage distribution
        facilities, and increase purchasing synergies.
 
     *  The company has focused its retail efforts on the rapidly growing
        price-impact format, where stores are less expensive to build and
        operate and generally are cash flow positive within a year.
 
     Zeigler believes the stock trades at a compelling valuation of 14.5x his
 2001 EPS estimate of $1.90.  His 12-month price target is $32.38.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada). Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With assets of about Euro 940 billion and
 more than 98,000 employees, Deutsche Bank offers its clients unparalleled
 financial services throughout the world in over 60 countries. It ranks among
 the leaders in asset management, capital markets, corporate finance, custody,
 cash management and private banking. Deutsche Bank is organised in two
 customer-oriented Groups: "Corporate and Investment Bank" (CIB) and "Private
 Clients and Asset Management" (PCAM). The keys to the Bank's success remain
 constant: customer focus, the spirit of innovation, a broad range of product
 skills combined with technological power and financial strength delivered by
 highly skilled professionals.
 
 Deutsche Banc Alex. Brown Inc. maintains a net primary market in the common
 stock of Fleming Companies, Inc.
 
     Within the past three years, Deutsche Banc Alex. Brown Inc. has managed or
 comanaged a public offering of Fleming Companies, Inc.
 
     There is a convertible issue outstanding on Fleming Companies, Inc.
 
     Within the past three years, Deutsche Banc Alex. Brown Inc. has
 participated in a private resale of securities made pursuant to Rule 144A
 under the Securities Act of 1933 for Fleming Companies, Inc.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgment and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
                     MAKE YOUR OPINION COUNT -- Click Here
 
                http://tbutton.prnewswire.com/prn/11690X14449085
 
 

SOURCE Deutsche Banc Alex. Brown
    NEW YORK, April 20 /PRNewswire Interactive News Release/ -- Deutsche Banc
 Alex. Brown analyst Jonathan Ziegler yesterday initiated coverage on shares of
 Fleming Companies, Inc. (NYSE:   FLM)($28.65) with a BUY investment rating.
     Ziegler said, "In our view, the market does not fully comprehend the
 changing dynamics at the company and we believe that at current levels,
 Fleming's stock represents an opportunity for investors to reap substantial
 rewards."
 
     Ziegler's positive investment thesis is based on the following factors:
 
     *  The company has largely completed a strategic repositioning that lowers
        the cost of goods sold and the cost of distribution services,
        diversifies the customer base, and rationalizes the retail operations.
 
     *  The strategic alliance with Kmart makes Fleming the sole food supplier
        at all current and future Super Kmart and Kmart discount stores. This
        should enable Fleming to gain market share, leverage distribution
        facilities, and increase purchasing synergies.
 
     *  The company has focused its retail efforts on the rapidly growing
        price-impact format, where stores are less expensive to build and
        operate and generally are cash flow positive within a year.
 
     Zeigler believes the stock trades at a compelling valuation of 14.5x his
 2001 EPS estimate of $1.90.  His 12-month price target is $32.38.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada). Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With assets of about Euro 940 billion and
 more than 98,000 employees, Deutsche Bank offers its clients unparalleled
 financial services throughout the world in over 60 countries. It ranks among
 the leaders in asset management, capital markets, corporate finance, custody,
 cash management and private banking. Deutsche Bank is organised in two
 customer-oriented Groups: "Corporate and Investment Bank" (CIB) and "Private
 Clients and Asset Management" (PCAM). The keys to the Bank's success remain
 constant: customer focus, the spirit of innovation, a broad range of product
 skills combined with technological power and financial strength delivered by
 highly skilled professionals.
 
 Deutsche Banc Alex. Brown Inc. maintains a net primary market in the common
 stock of Fleming Companies, Inc.
 
     Within the past three years, Deutsche Banc Alex. Brown Inc. has managed or
 comanaged a public offering of Fleming Companies, Inc.
 
     There is a convertible issue outstanding on Fleming Companies, Inc.
 
     Within the past three years, Deutsche Banc Alex. Brown Inc. has
 participated in a private resale of securities made pursuant to Rule 144A
 under the Securities Act of 1933 for Fleming Companies, Inc.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgment and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
                     MAKE YOUR OPINION COUNT -- Click Here
 
                http://tbutton.prnewswire.com/prn/11690X14449085
 
 SOURCE  Deutsche Banc Alex. Brown