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Sainsbury Share Price (SBRY)
|Share Name||Share Symbol||Market||Type||Share ISIN||Share Description|
|Sainsbury||LSE:SBRY||London||Ordinary Share||GB00B019KW72||ORD 28 4/7P|
|Price Change||% Change||Share Price||Bid Price||Offer Price||High Price||Low Price||Open Price||Shares Traded||Last Trade|
|Industry Sector||Turnover (m)||Profit (m)||EPS - Basic||PE Ratio||Market Cap (m)||RN||NRN|
|Food & Drug Retailers||23,775.0||-72.0||-8.7||-||4,826.77|
Sainsbury (SBRY) Latest News
|05/2/2016||16:19||UKREG||Brandes Investment Partners L.P. Form 8.3 - SAINSBURY (J) PLC|
|05/2/2016||15:26||UKREG||Morgan Stanley Capital Services LLC Form 8.5 (EPT/RI)Replacement J..|
|05/2/2016||15:24||UKREG||Morgan Stanley & Co. Int'l plc Form 8.5 (EPT/RI)Replacement J Sainsbury Plc|
|05/2/2016||15:24||UKREG||AllianzGI-Global Equity Business Form 8.3 - J Sainsbury Plc|
|05/2/2016||15:23||UKREG||Morgan Stanley Capital Services LLC Form 8.5 (EPT/RI)Replacement Home..|
|05/2/2016||15:20||UKREG||Morgan Stanley & Co. Int'l plc Form 8.5 (EPT/RI)Replacement Home Retail..|
|05/2/2016||15:11||UKREG||JPMorgan Asset Management Form 8.3 - J Sainsbury Plc|
|05/2/2016||15:07||UKREG||Morgan Stanley Capital Services LLC Form 8.5 (EPT/RI)Replacement J..|
|05/2/2016||15:07||UKREG||Morgan Stanley Capital Services LLC Form 8.5 (EPT/RI)Replacement Home..|
|05/2/2016||15:05||UKREG||Morgan Stanley & Co. Int'l plc Form 8.5 (EPT/RI)Replacement J Sainsbury Plc|
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Sainsbury (SBRY) Discussions and Chat
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|05/2/2016||12:45||***** J Sainsbury plc *****||16,735|
|13/1/2016||18:21||Stop ‘investing’ in lower prices– just reduce them||1|
|03/6/2015||11:12||***** ON BID ALERT *****||2,681|
|16/3/2015||10:54||Brent crude now $94..i think sainsburys should cut at least 10p off price petrol||5|
|14/11/2014||14:07||Sainsbury's 50 day MA still supporting||-|
Sainsbury (SBRY) Top Chat Posts
|edmundshaw: Deal is worth over 160p even if you assume Sainsburys share price was fair at 240p. What? So Coupe accepts 240p as the new normal for SBRY share price? While accepting that 100p was a vastly depressed share price for HOME? Seems that "We will not overpay" is director code for "we are prepared to overpay substantially and screw out own shareholders". Must remember that for future reference :-(|
|loganair: Time to go shopping for Sainsbury’s? By Robert Sutherland Smith: Sainsbury at 253p after the interim results. The traditional quoted food retail sector is still undergoing a big change on an undetermined time scale. On that basis, Sainsbury shares may not look an obvious buy. However, I argue that the shares are attractive when the financial fundamentals are recognised. The shares, after the results of the first half of the current year, are priced at 253p and look pretty bombed out on those fundamentals. Our home grown food retailers (who of course sell more than food) have been in the grip of an insurmountable problem: losing market share to outside competitors who have been increasing their market share. Nothing can be more debilitating for a big business than the loss of scale and economic and financial benefits that come with scale of operations, whilst the competitive interlopers (in this case Lidl and Aldi, the Hengist and Horsa of UK retailing) are increasing and improving theirs. That is a bit like their fighting with one arm tied behind their back. The big question is how long it will take before the now more competitive sector settles down into a new equilibrium. No one knows and it is difficult to guess. Moreover, there are other threats to the current sector players – including the invaders. As our legacy retailers of staple products spot ‘on line’ shopping as a lower cost opportunity, internet operators like Amazon spot ‘on line’ sales of food stuff as a new market opportunity. We are clearly only part way through some pretty momentous changes in this sector; none of which are susceptible to clear visibility and easy prediction and certainly not credible forecasting. However, as always, there is the usual solution of some future consolidation amongst the retreating traditional players like Sainsbury, Tesco, Morrison and Waitrose etc. I suspect that will become a genuine prospect in due course, particularly if Amazon come into the food retailing business – taking even more British Exchequer tax revenue to other taxation jurisdictions no doubt. So, is there a case for buying UK food retailers and Sainsbury in particular? The elementary factors guiding us in answering such a question, include the following: that all companies in their activities are subject to degrees of uncertainty; share prices over time move to discount evolving news, facts and prospects; long term investors with wealth to preserve and hopefully grow, need a spread of investments and risk. That includes food retail shares of course. Coming to Sainsbury specifically, the best argument for investing money in it in comparison with other retail shares is that the share price is now discounting the difficulties. The share price last seen was 253p after the last interim results. About two years ago, the share price was over 400p. What does an investor now get for his or her money? First, a lot of sales revenue; on the basis of last year’s sales annual revenue at £23.5 billion on an equity capitalisation of £4.8 billion; put another way a share price of 253p buying historic sales revenue of an estimated 1,237p per share. Second, a very low price to book valuation. In fact the share price last seen stands at a 13% discount to balance sheet net assets in March. The market capitalisation of Sainsbury equity, currently standing at a value of £4.8 billion, commands an enterprise value which is three and a half times larger. In the balance sheet of 14th March last, total assets were stated as £16.5 billion. Also note that last year’s EBITD (basically profits before interest, taxation and depreciation are charged) amounted to £770 million putting Sainsbury shares on an EBITDA ratio of only 6.2 times on the basis of last year’s figures. Despite the gearing, interest costs were reportedly covered 6 times on an annual basis and 7.4 times on an interim basis. The shares price also stands at only 3.7 times last year’s annual cash and near cash held. Such valuations are strikingly low. Turning to the latest interim results, the disappointing news include the facts that the interim dividend was cut 20%; that there was a loss of market share and thinner margins; that sales fell 2%; and that underlying profits fell by 18%. The company is responding, we are told, by improving its own branded ‘taste the difference’ products, which, against the 2% fall in sales, actually grew by a reported 2% in volume terms. However, the incoming new CEO Mike Coupe talks of cutting costs according to a programme that seems ahead of schedule. The company is also increasing its convenience stores (very much the fashion in the sector) where sales have risen by a reported 11%, on the back of a one fifth increase in the number of such stores. Moreover, the retailer is developing its new Tu clothing offer – sales up 10% over the first half – as well as building its Sainsbury banking operation which is for the moment absorbing transformation cost. At a given point the bank should obviously be making a contribution to net profits. The market is estimating a 17% fall in earnings this year to earnings per share about 22p, putting the shares on a forward estimated price to earnings ratio of just over 11 times. The consensus estimate, at this juncture, is for a further 2% decline in earnings the year after that. Interestingly, it forecasts top line sales revenue for this year as being static at £23.75 billion and pretty close to that again in the following year at an estimated sales revenue figure of £23.52 million. In essence then, the market seems to be calculating that Sainsbury will hold its sales, with a well understood fall in earnings this year but holding on to most of those earnings the following year. The market consensus also estimates that the annual dividend will be reduced twenty per cent in line with the cut in the interim dividend. At the 10.5p dividend payout estimated for this year and next year the estimated annual dividend yield for this year and next is 4.4% p.a. As I always say on such occasions, I am no more gifted in seeing the future than the rest of humanity. However, as a compensation for that lack of prophetic vision, I can identify value in the here and now. Sainsbury at this level shows quite a lot of what we call fundamental value, as indicated above. With the share price at a discount to balance sheet net assets, investors now are arguably being asked to pay nothing for earnings. It will be interesting to see whether at this stage and at these levels of valuation, the bears will be tempted to fold up their short positions together with their tents. Sainsbury is reported to have been one of the most shorted shares in the market. Technically, the shares have been moving sideways for over a year in a trading range of roughly between 220p and 290p. Arguably, the share price looks as though it might have broken out of the earlier downtrend that took it into that range. Have a look and see if that is your interpretation.|
|loganair: Why I Won't Be Buying Shares In J Sainsbury By John Kingham:
J Sainsbury along with the other major supermarkets, has been through the wars in recent years. Most people know the story by now, if only because of the more severe and highly publicised problems at Tesco.
J Sainsbury: It's a supermarket
Here's my extremely short version of the backstory for J Sainsbury. The big four UK supermarkets (Tesco, WM Morrison, J Sainsbury and, to a lesser extent, ASDA) had it fairly easy. As long as they did a half decent job, millions of shoppers would continue to shop with them.
But then along came the Financial Crisis and the Great Recession, and shoppers had far fewer pennies to spare and more time on their hands to shop around. The result was a change of shopping habits to more frequent and smaller shopping trips, at local stores that focus on price more than anything else. That played right into the hands of discounters Aldi and Lidl, who fitted this new shopping behaviour like a glove.
The initial response from the big supermarkets was to ignore the discounters, but that was a massive mistake and the big four have been losing market share and struggling to adapt quickly enough ever since.
A highly successful company, until recently:
things had been going very well. The company has a long and unbroken record of dividend payments and, in recent years, revenues, profits and dividends had all been going strongly.
Its statistics for the last 10 years look like this:
•Growth Rate (covering revenues, profits, dividends) of 6.4%, well ahead of the FTSE 100's anaemic 0.8%
•Growth Quality (frequency of revenue/profit/divid|
|spob: FT Alphaville today
Anyway, HOME a bit weak this morning.
|loganair: Sainsbury CEO Mike Coupe says its offer for Home Retail Group is about baking a bigger cake, one that neither British retailer could rustle up alone. Sainsbury is making sure it's getting the best slice - financially at least. On the face of it the supermarket chain's offer looks decent for shareholders in Home Retail, which owns the Argos general goods stores. At a price of 162.9 pence - thanks to a 2 percent rise in Sainsbury's share price on Tuesday morning - it’s a more than 60 percent premium to where Home Retail traded before the bid interest was made public. But the price includes 25 pence per share from selling Home Retail's Homebase shops to Australia's Wesfarmers, which Home Retail shareholders would probably have got anyway, as well as 2.8 pence in lieu of a final dividend. Take that off, and the premium falls to about a third, pretty standard for a takeover. Some Home Retail investors had hoped - unrealistically - for 200 pence, explaining why the shares barely moved on Tuesday morning. That's not to say that the deal makes sense for Sainsbury strategically. As Gadfly's noted before, it was doing pretty well on its own. Sainsbury needs to fill excess space in its big supermarkets and the Argos concessions already operating in its stores are trading well, indicating there might be some mileage in putting the brands together. Sainsbury will become the biggest non-food UK retailer and hopes the Argos delivery network will help it compete with Amazon. The combination is risky, though. Sainsbury estimates more than half of Argos's 800 or so stores have less than five years to run on their leases. But closing and relocating shops is a delicate business, and Sainsbury is banking on sales migrating from those high street stores to its supermarkets. Sainsbury has enough to contend with without a tricky integration. Supermarket rivals Tesco and Wm Morrison are steadying, while German price-cutters Aldi and Lidl are expanding apace. It’s a good thing, then, that Coupe has at least shown discipline on price. Still, Sainsbury needs the 120 million pounds of promised yearly synergies to make the deal pay. They're by no means guaranteed, and will cost a hefty 140 million pounds to implement. Plus there's another 140 million pounds needed to put Argos concessions into Sainsbury supermarkets. Sainsbury will get its hands on about 250 million pounds of Argos cash. Then there's its 600 million-pound customer loan book. So out of the 1.1 billion-pound element of the deal that Sainsbury is funding, it reckons it's getting Argos for 250 million pounds. Coupe's right not to overpay. Home Retail had a difficult Christmas, while Sainsbury shareholders must take it on trust that it'll do better in a combined group.|
|toffeeman: I think the recovery in the SBRY price since the announcement is indicative that the market thinks Sbry won't buy HOME - I certainly hope they don't!|
|loganair: Home Retail shares dive as Sainsbury's bid appears to stall: J Sainsbury Plc’s plan to acquire Home Retail Group Plc is in limbo as the U.K. retailers struggle to reach an agreement over price, according to four people familiar with the matter. Argos owner’s shares fall 10% but Sainsbury’s rise as reports claim takeover talks have failed to reach agreement on company’s valuation. in Argos owner Home Retail Group have dived nearly 10%, making itthe biggest faller in the FTSE 250, after a report that takeover talks with Sainsbury’s had stalled. Just days before the 2 February deadline for Sainsbury’s to decide on whether to make a bid, the two sides are reportedly struggling to agree a price. Sainsbury’s is unwilling to pay more than 150p a share for Home Retail, valuing the company at £1.22bn, according to a report in the Financial Times, while the Argos owner is holding out for 170p a share. Home Retail’s share price was down nearly 10% just before midday on Friday, at about 129p. The report comes after it emerged that major Home Retail shareholder Toscafund Asset Management, had sold 10m shares in the company at 152p each, reducing its stake to 7.25% from more than 8%. Retail analyst David Jeary at Cannacord Genuity also released a note on Thursday saying that any bid for Home Retail, after its sale of the Homebase DIY chain to Australian firm Wesfarmers, would be at a premium if it was more than 135p a share. “As long-term observers of Home Retail, we remain less convinced of the strategic logic and rationale of such a deal. However, just as beauty is in the eye of the beholder, value is in the eye of the bidder,” he wrote. Sainsbury’s shares rose 2.7% on Friday on reports that talks had stalled.|
|spob: Sainsbury in approach to buy Home Retail FT 5 January, 2016 Nathalie Thomas, Arash Massoudi, and Peter Campbell J Sainsbury has sought to pre-empt an assault by Amazon on the UK grocery sector by making an approach to buy Home Retail Group, the owner of Argos and Homebase. The UK’s second biggest grocer by market share said on Tuesday it made a cash and shares approach to Home Retail in November — shortly after the latter issued a profit warning — but was rebuffed last month. Sainsbury is now considering its position. The disclosure sent shares in Home Retail surging by almost 35 per cent by early afternoon, valuing the company at £1bn. Sainsbury shares were down 3 per cent at 246.8p. People familiar with the situation said Sainsbury was forced to issue a statement by the UK Takeover Panel following a sharp spike in Home Retail’s share price during lunchtime trading in London. The acquisition of Home Retail would allow Sainsbury to diversify into other parts of the high street. The supermarket group used to own the DIY chain Homebase, selling it in 2000, but suggested that its main interest was in Argos. Though famous for its glossy catalogues, Home Retail’s management, led by John Walden, has been trying to transform Argos into a digital business to beat off creeping competition from online retailers such as Amazon. Amazon is also starting to encroach on the supermarket chains’ turf, launching a grocery delivery service in the UK at the end of last year. “Amazon Pantry” delivers non-perishable food items to customers of its Prime service, who pay an annual subscription. But analysts believe it is only a matter of time before Amazon expands into fresh food, adding to existing pressures on UK grocers, which have been battling to overcome sales declines as they wage a fierce price war against the German discount chains Aldi and Lidl. Analysts at Olivetree Securities said Sainsbury’s move on Home Retail was an attempt to “fend off the inevitable pressures from players like Amazon which are likely to enter its core market”. The analysts added that a deal for Home Retail would also help the grocer address competition from other online food retailers such as Ocado. Sainsbury and Home Retail, which also owns furniture and homewares brand Habitat, have been experimenting over the past year with 10 Argos concessions in Sainsbury stores, offering customers the opportunity to pick up items they have ordered online while doing their grocery shopping. The supermarket chain said one of the advantages of a tie-up would be an “attractively located” network of stores across the UK with a “strong presence across food and grocery, clothing, homewares, toys, stationery, electricals, furniture and other general merchandise”. Sainsbury also pointed out that Home Retail had developed a “fast, flexible and reliable” home delivery service. Argos in October became the first UK high-street brand to launch a same-day home delivery service to defend against competition from the likes of Amazon. But several analysts questioned Sainsbury’s reasons for wanting to take on Argos. Clive Black, head of research at Shore Capital, said Argos had been a “really troubled business for some time” and Sainsbury would therefore be “buying problems that would have to be solved”. Analysts at Haitong Research said Sainsbury’s claims over the benefits of a tie-up appeared to have “flowed from the pen of an investment banker who has not been in Argos for a while/ever”. Home Retail in October warned that its full-year profits would be lower than previous market expectations following a tough first half for Argos, during which it suffered declining sales of electrical products. Shares in Home Retail dropped 23.7 per cent to 126p after the warning on October 21. But the stock had been regaining ground before Tuesday’s statement amid expectations that Home Retail would receive offers for Homebase. Nicholas Marshall, the former chief executive of the Garden Centre Group, told the Financial Times in November that his company, previously known as Wyevale, had been talking to private equity groups about a potential offer for Homebase. Sainsbury said there could be “no certainty” of a formal offer, but argued that a tie-up would be an “attractive proposition for the customers and shareholders of both companies”. “The combination is an opportunity to bring together two of the UK’s leading retail businesses, with complementary product offers, focused on delivering quality products and services at fair prices, through an integrated, multichannel proposition,” it said in a statement. Under UK takeover rules, Sainsbury has until 5pm on February 2 to make a formal approach or walk away. Comments definitively 2 minutes ago The click and collect on non-food could drive footfall for Sainsburys and a new, more affluent customer profile for Argos' refreshed 'digital store' proposition. It could be interesting. Also, instead of refurbishing all of those creaky Argos stores you could close a bunch and relocate to inside bigger sainsburys formats or their even to their car parks. It's risky, but 'it just might work'. ReportShare RecommendReply Prags 8 minutes ago Sainsbury taking over Argos - couldn't have come up with a stupider idea for the shareholders even if I had tried. It is one trouble business with limited future buyer another troubled business with no future. Only thing it does is distract the management and probably the shareholder focus on the poor and declining performance of the underlying businesses ReportShare RecommendReply Nguba 17 minutes ago The Argos property estate needs a lot of investment. When you step into many of their stores outside London it really does feel like you've stepped back in time. Many Argos stores have been barely touched since the early 1990s. Amazon may have many critics, but I don't think any physical UK retailer could match Amazon's real desire to innovate and the sheer speed at which Amazon operates.|
|loganair: Mike Coupe was convinced of the need to win control of Argos and more control of online shopping by his daughter’s preference to make purchass on her mobile. But the real test for him will be execution if the deal is eventually done.
Experience tells us that very few mergers create new value and the distraction for managers, especially those engaged in a market as competitive as grocery, can be damaging.
It looks to be riding out the no-frills challenge with a degree of aplomb. The company’s reputation for offering better quality than its biggest competitors, Tesco and Asda, and being not far off Waitrose, is serving it well.
Coupe noted that the leases on about 55 per cent of Argos’s 734 UK stores are due for renewal over the next five years.
A combined group would offer about 100,000 products and 2,000 locations for shoppers to buy their goods.
"The retail winners will be those that bring together a physical and online presence. Having a physical presence is an important part of our strategy through supporting high streets.”
Not everyone is convinced the move will be enough to become a viable rival for Amazon in the UK.
One big disadvantage for Sainsbury’s is that it pays the full whack of corporation tax and Amazon doesn’t.
And Sainsbury’s shareholders expect the company to turn in rising revenues, profits and a dividend whereas Amazon investors have learned to be patient.
"Argos isn't very far through its modernisation, so Sainsbury's shareholders would assume that risk," Tony Shiret, an analyst at Haitong Securities, said.
"Argos is an ugly duckling. It won't turn into a swan just because Sainsbury's kisses it."
And although the supermarket reckons it's a great deal, it's not completely relying on it.
There’s nothing like a takeover approach to concentrate minds. Home Retail Group, a week after Sainsbury’s announced it was on the prowl, is set to sell its Homebase chain to Wesfarmers of Australia. Discussions began last September, says Home Retail, but it looks as if both sides decided to hurry up the talks.
There’s no shame in that, especially as Sainsbury’s sole interest in Home Retail is Argos. It is the sale price for Homebase that matters more. On that score, the headline price of £340m looks decent, but it’s not quite as it seems. A mighty £75m is earmarked for “restructuring|
Sainsbury (SBRY) Latest Trade
Sainsbury Most Recent Trade
|Trade Type||Trade Size||Trade Price||Trade Date||Trade Time||Currency|
|288||245.10||05 Feb 2016||17:07:06||GBX|