Sainsbury (j) Share Discussion Threads

[loganair] 19/5/2019 18:32

If Sainsbury's had not bought out Home Retail / Argos in the next quaterly review they would be going down to the FTSE 250.

[loganair] 19/5/2019 12:51

carlsgan1 - You mean you're Investor rather then a Trader.

DeGiro seems to me a good execution only broker.

I've heard many negative things said about the Halifax share dealing service.

[carlsagan1] 19/5/2019 12:06

Interactive Investor have decided to increase fees AGAIN!

If anybody can recommend a cheaper broker let me know.

I am considering going to iweb-sharedealing(Halifax) for a fixed £5 a trade or X-O(Jarvis) for £5.95, neither have monthly, yearly, or inactivity fees like ii

I trade long term so dont want trading credits accumulating only to expire after 90 days...

[spob] 19/5/2019 09:47

When the council needs homes for our friends from across the channel they usually change their minds

[loganair] 18/5/2019 17:25

Around 70% of Sainsbury's stores and land have been sold and leased back which in the long run is a very expensive way of conducting business.

Sainsbury's can not build houses on any land they own as at best they only have permission to build retail stores on it.

[tim 3] 18/5/2019 08:30

Online is almost certainly not profitable for the big 4.

Ocado has no stores and still struggles to make a profit.

The discounters survive very well without it.

The future will include online but successful stores are the key to driving profit imo.

[sasbod] 18/5/2019 08:10

Sainsbury's unlike other fallen retailers still own their own stores and land... sooner or later stores will close and online will take precedence... i would like to see sainsbury diversity into building houses on that land... that way they will have a foot print in banking, retail & housing.. every little helps..

[diku] 17/5/2019 22:44

Ok pigs then...makes you wonder if all this so called investing is really worth it...the only winners are the insiders...at least they get paid for it and call the shots...

[s34icknote] 17/5/2019 22:36

Underling eps was 22p Underling earnings were up 7.8 percent ! Not that bad a performance in the current climate The headline newspaper and tv figures that make headlines was down. Or have I got this wrong ?Sicknote

[spob] 17/5/2019 14:41

blue chip dogs is not fair

i like dogs

should be blue chip pigs

[nick rubens] 17/5/2019 14:24

Add British Telecom to my blue chip dogs as well! lol

[nick rubens] 17/5/2019 14:21

It's ok saying they want to reduce debt, but with profitability at risk of/and having been eroded , words are a bit meaningless. The dividend will be cut again sometime ahead IMO.

I see lots of companies load up with debt and then eventually either go bust because of it or ask shareholders to pay up for the debt or some of it.

LWB, CAR, TCG, and goodness knows how many more listed companies all ending up the same way with debt and falling profits or even losses.

Even though I managed to bail SBRY, I still got caught in numerous other blue chip investment dogs like CNA, SAGA and others. Great supermarket though but not an investment sadly.

However if anyone sees an opportunity here, I wish you all the best and wouldn't want to dissuade you.

[loganair] 17/5/2019 09:43

I do not normally make predictions when it comes to share prices, however I wouldn't at all be surprised to see 150p for the bottom of Sainsbury's.

God knows what the Qataris are making of their investment of nearly £6 per share in Sainsbury's.

[tim 3] 17/5/2019 09:43

Bottom line I think its going to be tough going for them with continuing tough competition and plenty of potential difficulties ahead.

Being cheap alone rarely drives shares up it needs good news for that and I can't see to many areas for that to come from here.IMO.

[ny boy] 17/5/2019 09:40

200p is bottom of the down channel trend line, needs to hold this level into the close or, could drop lower, if so I will close out and buy more (STX), so I can easily make up the loss.

[spob] 17/5/2019 09:40

JD Sports market cap almost 6 billion now

and will be going into the FT100

sign of the times

[loganair] 17/5/2019 09:39

Usually making a large acquisition is bad for the share holders of the acquiring company.

TUI has just completely written off the total value of it's take over of Mytravel.

Vodafone was valued at around £80bln when it took over Mannesmann for €120bln. Currently Vodafone is valued at around just £33bln.

[blueball] 17/5/2019 09:37

180p next week.

[loganair] 17/5/2019 09:35

Could the Sainsbury’s share price ruin your Stocks and Shares ISA? by Andy Ross:

From the infamous moment that J Sainsbury (LON: SBRY) boss Mike Coupe was caught singing “we’re in the money ” while waiting for a TV interview, his goal of merging the supermarket he runs with Walmart-owned Asda seemed to start slipping from his grasp. And so it has proved with the Competition and Markets Authority blocking the deal on the grounds of reduced customer choice and likely higher prices. With the merger having been called off, what shape is Sainsbury’s now in as a business and investment prospect? Could it drive your Stocks and Shares ISA to new heights or leave it generating even lower returns than a Cash ISA?

The results paint a picture:

The simple answer to that question is: not good. The full-year results showed that despite acquiring Argos in 2016, the group only just managed to increase its overall sales by a fairly measly 2.1%. But the bigger problem was the falls in profit before tax and earnings per share. The former fell by a massive 29%, the latter by 32%.

The results paint a pretty bleak picture to me of a company that is in poor shape and was desperate to acquire growth and market share through a major acquisition or merger. That is not a recipe anyone should embrace. Indeed, rightly or wrongly, it reminds me of the desperate antics of Carillion trying to buy Balfour Beatty not that long before it collapsed. I’m not saying the same thing will happen at Sainsbury’s, but the company does have some parallels – huge debt, reliance on acquisitions for growth and a high and growing dividend despite a poorly performing business.

Debt:

Addressing debt first of all, it is seven times greater than pre-tax profit which for me is uncomfortably high. Management recognises the issue and has an aim of reducing debt by £600m over the next three years. This is a good first step, but the level for me is still a concern.

Acquisition growth?

Although there was praise for the Argos acquisition at the time, nearly three years later, the question has to be asked: was it worth it? In the final results, Sainsbury’s, did not separate Argos’s financial contribution to the group and instead focused on synergies and its presence in Sainsbury’s stores. I think investors deserve a little more detail than that, given £1.4bn was spent on acquiring the business.

The dividend:

Then there is the dividend. It may be tempting to want to grab shares in a company yielding over 5%. However, with profit before tax plummeting, it is hard to see the sustainability in increasing the dividend and unless the underlying business improves, a future cut to the dividend looks likely to me. It happened to Tesco in recent memory and it could happen to Sainsbury’s too.

Even with the share price at its lowest in a decade, I would not be tempted to buy into Sainsbury’s. To me it looks like a value trap, and one that I’m keen not to fall into.

[spob] 17/5/2019 09:33

if Sainsburys fell to 167p as things stand, it would be auto ejected from the FT100

[spob] 17/5/2019 09:26

need to get to 110 for ejection iirc

[loganair] 17/5/2019 09:25

Currently Sainsbury's are in 95th position in the FTSE100 while there are only 2 FTSE250 companies are currently in an FTSE100 automatic entry position - JD sports 73rd, Aveva 84th.

Current bottom FTSE100 positions - M&S 99th, Direct Line Insurance 100th, Hikma Pharmaceuticals 101st, easyjet 105th.

[spob] 17/5/2019 09:21

down 41% since August

if it gets to 135p that would be -60%