Sainsbury (j) Share Discussion Threads

[loganair] 11/9/2019 10:52

Freehold property is a strong positive for any balance sheet. Compared to Morrison, both Sainsdbury's and Tesco have so few freeholds, most are sale and lease backs which leaves huge long term liabilities on their balance sheets.

[cjohn] 11/9/2019 10:27

Stockopedia article ridiculous.

The principle reason Sainsbury's liquid assets are a relatively small proportion of overall assets is because of the large amount of freehold property on the balance sheet.

All that freehold property is obviously a severe balance sheet weakness.

[dexdringle] 11/9/2019 08:08

I've never read such a load of old boll*cks as that Stokopedia article above.

I think Sainsburys should just wind itself up and return the £3.20 net tangible asset per share figure to the shareholders......

[ny boy] 10/9/2019 17:03

I did call the bottom 22 August, the technical signs were there.
Onwards & upwards

[neilyb675] 05/9/2019 12:18

201.50 - 201.60 (GBX) at 12:17:13
on Market (LSE)

[neilyb675] 30/8/2019 09:10

198.85 - 199.00 (GBX) at 09:09:33
on Market (LSE)

[alphorn] 22/8/2019 15:04

That is not true loganair. The Trust sold down its stake in GW and at one point even sold off almost £2bn worth.

[loganair] 22/8/2019 14:44

Also the Wellcome Trust didn't sell out, they got shares in Glaxo and use the Glaxo dividends to carry-on with their work.

The Wellcome Trust wouldn't have sold out to Private Equity only to another pharmaceutical company.

[alphorn] 22/8/2019 14:40

Depends upon what other investment possibilities that they may have. Something rather than nothing is always tempting.
(How much did Buffett lose on Tesco?)

[loganair] 22/8/2019 14:29

Bid difference was the price QIA paid for their shares, 600p and therefore will not wish to take a huge loss on their investment.

If a potential bidder came in lets say 300p, I would accept as I only paid an average of 262p for my shares, however would the QIA be wilingl to accept having paid 600p for their shares?

[alphorn] 22/8/2019 14:26

loganair - can also be a positive as Glaxo found out with the Wellcome Trust holding in Wellcome.

[loganair] 22/8/2019 14:06

What will stop any foreign from bidding is the over 20% that QIA hold. As they paid 600p per Sainsbury's share I doubt very much the would want to sell for much less.

I do not think QIA will bid as they usually only take significant holdings in the companies they invest rather then take companies over.

[imperial3] 22/8/2019 11:17

Good to see these pushing up hopefully leaving forecasts of 150p far behind.

[neilyb675] 22/8/2019 09:12

198.00 - 198.20 (GBX) at 09:11:18
on Market (LSE)

[ny boy] 22/8/2019 09:02

Bottom was in from the other day, strong buying, let’s hope a foreign bidder is gearing up for a move whilst the £ is so low against most global currencies

Onwards & upwards

[imperial3] 21/8/2019 11:27

Nice to see this climbing leaving 150p way behind.

[loganair] 20/8/2019 14:41

In my local Sainsbury's much of the time the in house Argos has more staff then customers.

Before the Argos closed, being in town people could easily walk to it especially from the two large council estates, now most people can only reach the in house Argos by driving to it.

The problem I've often found with Argos, the staff are unable to explain the technical details of the electronics they sell, even that the same size soft computer case does not fit the lap top because the computer case has very rounded corners and the case is measured from one side to the other not taking into account how the rounded corners mean the lap top doesn't actually fit in the soft case.

[poikka] 20/8/2019 14:14

I'm struggling with your 357, Loganair.

Here's a part of Priority 2 from the Finals. The full article can, of course, be read.

"We have 281 Argos stores in Sainsbury's supermarkets, achieving our 2018/19 year-end target of 280. These stores now account for around 20 per cent of Argos store sales.

Sales in Argos stores in Sainsbury's supermarkets that have been trading for more than three years are 43 per cent higher than in their first year and sales in stores trading for more than two years are 31 per cent higher than their first year of trading.

We continue to see an uplift in grocery sales in supermarkets that have an Argos store. We opened our first Argos in a Sainsbury's convenience store in Ascot, Berkshire, as we trial new ways to bring our broader Food and General Merchandise offer to more customers."

[loganair] 20/8/2019 13:55

What I'm hearing is for a retailer to be successful it needs to understand what is relevant today and must be authentic about it.

The No: 1. Less processed foods.

[loganair] 20/8/2019 11:08

That is the point - supermarkets are useless at making the best of footfall.

Also, Argos was closed in town and put into my local Sainsburys - this move has not increased the number of shoppers in the store.

One could walk to the Argos when it was in town, one needs a car to drive to the now in Sainsbury's store Argos.

[poikka] 20/8/2019 10:50

"at what cost" is true, but Supermarkets are good at making the best of footfall.

Time will tell.

[loganair] 20/8/2019 10:21

Discounter Drive:

The discounters, Aldi and Lidl, were among the strongest performers according to the latest data, seeing a 6.2% and 7.7% increase respectively. Aldi now holds 8.1% market share, while Lidl is on 5.9%.

"Lidl’s raft of new store openings has helped it attract 489,000 additional shoppers this period," said McKevitt. "Its campaign to encourage people to do their main weekly shop at Lidl is making an impact and the average basket spend is now nearly £19, 3% higher than last year, though still significantly lower than the £22.65 average spend at the big four."

Elsewhere, Aldi benefited from the fact that "nearly half of all households shopped in an Aldi during the past 12 weeks, showing the extent to which the discounter has established itself in our retail landscape," he added.