Morrison (wm) Supermarkets Share Discussion Threads

[farrugia] 03/3/2021 15:45

sainsbury's has 5.4 billion of net debt and they don't own many of their supermarkets - how's that? Yet the market valuation of sainsburys is 4.95 billion while morrison's is 4.10 billion - which is the better buy?

[bend1pa] 03/3/2021 15:38

They've also got lots of net debt - like £2.8bn's worth. No wonder the market is being cagey.

[farrugia] 03/3/2021 09:00

so Morrisons own lots of their stores (they aren't leased) and have an agreement with Amazon yet the stock price is in the doldrums?? Directors have also topped up recently. I'm topping up.

[philanderer] 03/3/2021 00:45

MARKET REPORT: Morrisons set to fall out of the FTSE 100 for the first time in five years as it lags rivals during the pandemic

[essentialinvestor] 02/3/2021 18:21

mk, not disputing there is possibly value, however it's realising that

value is my point. It's unlikely to happen if MRW continues in it's current guise.

What it looks like to me is a nice gravy train for the top team who's interest

arguably is in continuity.

A bid is the best way to realise something closer to fair value.

[justiceforthemany] 02/3/2021 18:16

They should never have returned the business rates waiver as they spent all that money and more on hiring the thousands of frankly pointless 'Covid' staff. Was an easy justification for the CEO in not refunding this given the above but the idiot did so anyway.

[justiceforthemany] 02/3/2021 18:14

NAV/book price = 188p
If they can get rid of all the extra Covid staff (waste of money, usually stood around idly chatting) that has cost the company tens of millions we could see EPS return to around 14p which would leave the shares on a P/E around 12 which is low, with a solid balance sheet, share price below NAV, decent dividend and with M&A potential. I would be looking to buy en masse if this falls towards 160p/150p.

[m_kerr] 02/3/2021 16:06

EI - i'm merely pointing out that there is an insatiable appetite for the £5.8bn of property morrisons own (on the open market that may be worth much more as many stores will be fully depreciated). the past is the past, the longer the share price languishes, the more it's a likely an activist will come in and demand changes to get the price up. the asda takeover has highlighted how it is ideally suited to being bought out by a private equity company, and if they don't sort it out some of them may be out of a job soon.

[marine boy] 02/3/2021 12:58

Seems it wouldn't matter if their new trawler netted gold bars, there is play here to push this out of the ftse100. I have an average price of 177p but holding firm as I wait for the market games to play out.

[essentialinvestor] 02/3/2021 11:33

What price was Morrisons trading at when David was appointed,

what is the current share price? - value destruction not value creation imo.

[essentialinvestor] 02/3/2021 11:27

Value creation ?.


There is one means of value creation for existing shareholders- a successful bid.

The extraordinary loss of control over costs during the last 12 months
is utterly disgraceful, even allowing for the pandemic.

This is a PLC not a charity.

[m_kerr] 01/3/2021 17:26

what value can you put on their food manufacturing business? it's not as easy to value as supermarkets themselves, but offers yet more options for value creation.

[johnwise] 01/3/2021 16:39

Morrisons becomes first supermarket to own its own fishing boat after it acquires Falfish

Morrisons has today acquired Falfish in a move it says will allow the supermarket to offer a better range of fresh fish and seafood.

Following the deal over 80 per cent of Morrisons fish and shellfish - both in our 497 stores and in our online business - will come from Morrisons wholly owned seafood operations."

[m_kerr] 28/2/2021 13:40

buy well, i wouldnt be surprised to see this slide a bit if it drops out of the ftse 100, but it has no bearing on the intrinsic value of the company. i think the end of the space race for UK supermarkets, and significant deleveraging that's happened at morrisons in the last 5-6 years means that they are now going to distribute most of their free cash flow in dividends. upside, even from this relatively low valuation, is not sky high, but downside is limited IMO.

[buywell3] 28/2/2021 08:10

Chart not looking very healthy

Possible 150p coming imo

dyor

[philanderer] 28/2/2021 00:22

FTSE100 tracker funds will sell, FTSE250 tracker funds will buy.


Dr Martens poised to boot Morrisons out of FTSE 100

The Northamptonshire footwear brand is valued at £5bn after floating in London last month

[igoe104] 27/2/2021 19:11

If these drop out the ftse 100, will some funds be forced sellers ?

[m_kerr] 27/2/2021 18:33

anyone else thinking private equity will be having a very close look? it seems almost certain to me. either that or amazon who could use the near 500 stores as local distribution points for their main business, with free grocery delivery tagged on to their prime offering. morrisons have a freehold portfolio worth almost £5.8bn, and there is huge investor demand for those assets which has only increased during the pandemic, so it's quite possible that it could be worth higher than that on the open market. the freeholds back up 84% of the current enterprise value which includes all debt and future lease liabilities. and amazingly 140% of the current market cap.

even if there is no takeover, the shares are delivering a relatively secure 4% dividend. i consider this much less likely than a PE takeover, but they could also spin off some of those freeholds into a reit, targeting yield investors. either way there are plenty of options and potential catalysts to getting the share price to a significant premium to where it is now.

[wiganer] 24/2/2021 11:20

Well, if that happens I will fill my Doc Martens.

[diku] 24/2/2021 11:03

So this is hanging on the wire...and if it gets booted out selling kicks in?...

[scotches] 24/2/2021 11:01

The Russell Committee who deal with Index changes have highlighted Pennon for FTSE100 demotion and Weir Group for promotion. The actual decision takes place in early March.





MRW is clinging on in 110th place, just one slot above automatic demotion.

If MRW get the "boot" then the beneficiary could be "Dr. Martens" (DOCS) the recent IPO which has soared in value over the last month. Over on that board it is being remarked that the stock is "...the Tesla of the boot business" with many posters unconvinced by the surge.

[cwa1] 18/2/2021 14:14

Increased holding by Silchester announced:-

[scotches] 18/2/2021 10:33

Times article indicates that Iceland stores have refused to pay their rates bill and will retain the cash much of which was spent on buying out a foreign shareholder.

The article also confirms that the Co-op, Waitrose and M&S will not return the rates cash. (Neither did MRW partner McColls).

The boss of Iceland has claimed the frozen foods retailer cannot afford to pay back business rates relief after the heavy costs of making shops safe and buying out its foreign shareholder.

MRW did return the rates cash which will be reflected in next month's profit dive.




"Richard Walker, 40, managing director of Iceland and son of Malcolm Walker, 75, the supermarket’s founder, has defended the grocer’s decision to keep £40 million of taxpayer support by arguing that it helped meet the “very substantial direct costs” of making shops Covid-secure, hiring 6,000 new workers to expand its delivery service and giving staff sick pay.

The same argument was employed by rival supermarkets before they bowed to intense criticism that they were “lockdown winners”. Grocers including Tesco, Sainsbury’s, Asda, Morrisons, Lidl and Aldi have handed back £1.8 billion of business rates relief which the government made available last March to help the high street through the Covid-19 turmoil. Waitrose, Co-op and M&S have also refused to hand back rates relief. "