Sainsbury (j) Share Discussion Threads

[exel] 02/5/2020 08:29

In and out over the years, I've tried and failed to make the long term case for SBRY. In essence, they have circa £5bn of assets and work 'damned hard' to turn £30bn of costs into £30bn of income, while (now) paying no dividend. Competition is 'everywhere'. Price pressures abound. CV is a total pain for them, and for all like-placed retail organisations, whether 'essentials' or not. Increased cost of working? Ouch! I just don't see this stock as remotely investable, until they can make a sustainable profit and pay a modest dividend. Even then?

[ny boy] 30/4/2020 20:11

Current shameful management should read the following and learn what it means to run a successful PLC. They really should hang their heads in shame for the current position of a once very successful PLC

Simon Sainsbury must be turning in his grave, if only he could return to sort this shower out!

Simon Sainsbury later said, "we were all fired by the ambition to run it better than it had ever been run before." They succeeded. By the time his elder brother retired as chairman in 1992, the company had a turnover of £9.2bn.

Simon Sainsbury was part of a remarkable fourth generation that transformed a medium-sized family business, based in the South-East of England, into a public company that became the most profitable retailer in Britain.

[muffinhead] 30/4/2020 15:15

As it's the month end and corona madness season

Its been a long structural bear market.... cyclical magic can happen with a new CEO

[pierre oreilly] 30/4/2020 14:26

c&p from official rns



Proposed final dividend 0 7.9p -
----------- ----------- ---------
Proposed full year dividend 3.3p 11.0p (70)%


If the divi is 'deferred' (as they say), then that is the same as not declaring a divi at this time, which is the time the final divi is declared. As above, final this year is zero at the moment, full year 3.3 (which means the interim was 3.3). Basically, the final is gone, and the very best to hope for, although pretty much zero chance imv, is some sort of special later on.

The uncertainty they have created by saying the divi is 'deferred' is even worse than simply clarifying there'll be no final this year. imv.

[mercer95] 30/4/2020 13:58

No offence Porsche but I’ll wait for the official confirmation from a more reliable source than a free trading message board, until than it’s been DEFERRED IMO

[porsche1945] 30/4/2020 13:43

@mercer

Bleve me, it’s cancelled, and will be rebased lower after, Sainsbury’s dying a death for years, and stuff the “ bad press “, the scumbag press will get over it, good that even a basket case like Tesco looked after their shareholders, who are the most important, as they are the OWNERS. If the rates rebate a problem, don’t accept it and operate the dividend normally.

[kazuko] 30/4/2020 13:38

Tried to sell at 2.08 yesterday afternoon but the Halifax Share dealing site crashed! Don't know whats the worst Sainsburys or Halifax share dealing ....?

[muffinhead] 30/4/2020 13:23

Nope!... it's cancelled, its official

"deferred" = Coupe BS
There has been non-lease net debt reduction of GBP343 million.... but something else on balance sheet has gone puff because net assets on balance sheet roughly flat from last year.

Need to sort their website for investors... not working at moment

[mercer95] 30/4/2020 12:51

The dividend hasn’t been cancelled,Sainsbury’s are trying to avoid the bad press Tesco received recently regarding their divi payout IMO Back over 200p by this weeks end I reckon.

[porsche1945] 30/4/2020 12:49

Dumped out of these a while ago thank god, uk pretty much uninvestable, Brexit fiasco trashing sterling and flatlining the economy and now this, i short the ftse350 and invest in the S&P, U.K. and the likes of Sainsbury’s are toast. U.K. has even managed to make a hash out of covid response. Pathetic self harming mess of a government.

[tim 3] 30/4/2020 12:00

Good comments today.

Without a divi can see little reason to own they will have all on standing still let alone growing.IMO

[pierre oreilly] 30/4/2020 10:38

Not should be more.

[pierre oreilly] 30/4/2020 10:38

With lidl and Aldi as competition, no UK supermarkets are going anywhere for donkeys years. Applies the same today as it did 10 yeas ago when I posted the same. No divi and not store closures to look forward to. Even with the mega help from covid.

[loganair] 30/4/2020 10:28

Dividends are one of the most important reasons why people own shares.

Before Covid 19 if I put £100 into a savings account I was earning £1.50 interest - £1.50 in income, however if I put the same £100 in to a share I could have been earning as much as £8 in income = 6 Xs more income from the same £100.

[mercer95] 30/4/2020 10:14

The supermarket group also reported its preliminary results for the 52 weeks to 7 March 2020, and announced that underlying pre-tax profit was down 2% to £586m, while pre-tax profit rose 26 per cent to £255m.

Groceries online sales grew 7.6%, while convenience climbed 1.3% and supermarket sales declined 0.1%, impacted particularly by general merchandise sales declines.

During the period, retail underlying operating profit fell 4% to £938m and financial services underlying profits were up by 55% to £48m.

I wouldn’t call that a poor performance fozzie
Good point pete160, makes a lot of sense from a PR point of view that they have deferred the decision on the dividend, sometimes as an investor you have just got to trust the BOD. GLA

[fozzie] 30/4/2020 09:49

Final results but all they talk about is Covid 19 and its effect on the business. Covid 19 didn't affect the year ending March 7th though anyone reading the results would think that they had traded the entire year through the pandemic. I think this will be a common theme going forward amongst many companies, something to blame poor performance on.

[pete160] 30/4/2020 09:30

I suspect that they've deferred the dividend until there's less likelihood of negative PR when they could be seen to be taking business rates relief from the Government on the one hand, just to pay out a divi to shareholders on the other.

[the oak tree] 30/4/2020 09:08

Your right its more deferred so it may well be given. Indeed I suspect it will but not willing to stay in this that long.

[mercer95] 30/4/2020 09:01

The dividend decision has been deferred so the dividend hasn’t actually been cancelled yet or am I reading that wrong, new one for me, deferred dividend decision is so ambiguous so maybe this mornings share price performance is an overreaction.

[the oak tree] 30/4/2020 08:40

Well Im out, sold the lot.
Not happy with no dividend.
I think those that play the long game will be fine here, as this years results will be good.
Just feel in this market, by that time there will have been better investments to have been made now.

Didn't turn out as expected but just a small loss.

GLA

[muffinhead] 30/4/2020 08:33

Really hate it when companies start reporting "underlying"

Just call a spade a spade

Berenberg has this for 170p which after that performance and outlook could be generous

Qatar should just dump their 22% holding and invest in Amazon

[farrugia] 30/4/2020 08:33

in any case i sold at 209p - thought it might go down on sentiment but it went up a bit so i took advantage of that. However, keep in mind that supermarkets have to appear to be 'under pressure' to justify their business rates year holiday (same pattern as Tesco).