Sainsbury (j) Share Discussion Threads

[dipa11] 20/9/2021 18:29

https://www.britishbulls.com/m/SignalPage.aspx?lang=en&Ticker=SBRY.L

[loganair] 20/9/2021 13:34

In the times we're likely to go through in the next few years the likes of Sainsbury's will be a good place to be in.

[scaff55] 20/9/2021 13:22

Its just manipulate to do anything mms want.

[rolo7] 20/9/2021 08:57

sbry always up on a weak market day a good sign

[harleymaxwell] 20/9/2021 08:43

Something afoot on a red day?

[scaff55] 17/9/2021 08:09

Buying or selling these shares don't matter, there going down .

[rolo7] 16/9/2021 15:59

Shorts on to Argos supply issues for Xmas?

[scaff55] 15/9/2021 16:30

Up in the morning but down maybe 2p at the close,, manipulated

[scaff55] 15/9/2021 14:38

Manipulation .

[scaff55] 14/9/2021 15:18

Manipulate to death by mms they know the closing price before the markets open. Ground hog day again and again.

[loganair] 11/9/2021 17:42

m_kerr - Agreed, however traditionally Sainsbury's market cap is usually circa 40% higher then that of Morrison's and therefore it seems to me fair to say if Sainsbury's were taken over then a 20% higher valuation then Morrison's would seem very fair to me.

Currently Sainsbury's market cap is £400mln less than Morrison's.

[m_kerr] 11/9/2021 17:25

logan - morrison's was bought for the property, 86% freehold v sainsbury at about 50% IIRC. sainsbury's has lots of long, onerous leases with RPI uplifts.

[loganair] 11/9/2021 16:08

Sainsbury's has circa 50% more market share than Morrison's and 40% more profit therefore on the basis Morrison's is finally sold for around 300p would give a take over price for Sainsbury's of 350p to 420p (16% to 40% higher than the Morrison's take over price.)

[m_kerr] 11/9/2021 15:35

dan - a simple calculation using typical private equity borrowing levels led me to conclude a takeover was difficult to justify at a premium to £3.35. if it falls back a bit, the numbers start to look much more viable. the capital allocation decision to sell the bank for about £200m, and use the proceeds to buy back the 51% share of the property portfolio they don't own, that's a great move, and one that makes the company more attractive to a suitor.

[danvandan] 10/9/2021 16:03

anhar, glad to see that you're continuing with the quest to bring people back to reality. As you and I both pointed out at the time, the SBRY bid talk a few weekends ago was a classic pump and dump scheme, put about by the usual thieves and charlatans and their friends in the press, in order to separate private investors from their cash, and fill the pockets of the the conmen and robbers who infest our great investment community.

Many refused to accept it was all made up, but the price is now back where it was before the great lie. I suggest that everyone here taken in by this fiction does two things:
1. Reflect on one's own gullibility
2. Make a note of all the posters who added to the deceit.

Onward and sideways. GLA.

[loganair] 06/9/2021 13:51

Bidding war for supermarket giant Morrisons set to be decided in dramatic auction showdown 'within weeks':

The Takeover Panel is expected to begin talks with the two bidders and the Morrisons board as soon as this week

The bidding war became public in June and the CD&R bid of 285p per share, posted at the end of last month, will now push the process into its fourth month.

A source said: 'The panel will shortly be speaking to various parties ready for an auction in the middle of this month. Having such an extended offer period creates great uncertainty for the company.'

The only way an auction will now be avoided is if Fortress, led by former Tesco boss Sir Terry Leahy, declines to come back with a higher bid, which would be likely to hand CD&R victory. An auction would probably give the two parties between one and five days to bid, with the highest offer recommended by the board at a shareholder vote.

The prospect of a higher bid means the business could overtake Sainsbury's as Britain's second largest supermarket by market capitalisation.

The Bradford-based grocer's £7.02billion market capitalisation, at Friday's close, was less than 1 per cent behind Sainsbury's £7.08billion valuation, and the market expects the bidding for Morrisons to go higher still.

Three months ago, Morrisons was worth just £4.3billion and Sainsbury's £6.3billion.

On Thursday Morrisons will announce interim results, with profits of around £240m.

[spob] 03/9/2021 14:26

"Analyst Clive Black retained his ‘buy’ recommendation after it was reported the sale could net the supermarket £200m. It is not the first time Sainsbury’s Bank has caught an investor’s eye and Black said if an ‘appropriate offer did come along then the group’s board would give it serious consideration’ to create further resource to focus on core priorities.


What difference is £200m going to make to Sainsburys

Look at the total liabilities of this company

200m is nothing

[rocketblast] 03/9/2021 09:19

SBRY LOOKING SET TO CORRECT!! 550p plus more support so Bank Arm Sells-how soon. Takeover still on cards so nothing ruled out.

[loganair] 01/9/2021 06:27

Sainsbury’s Bank catches private equity eye:

Sainsbury’s is rumoured to be in talks to sell its banking arm to private equity group Centerbridge, and broker Shore Capital says the supermarket should give it ‘serious consideration’.

Analyst Clive Black retained his ‘buy’ recommendation after it was reported the sale could net the supermarket £200m. It is not the first time Sainsbury’s Bank has caught an investor’s eye and Black said if an ‘appropriate offer did come along then the group’s board would give it serious consideration’ to create further resource to focus on core priorities.

‘We shall wait to see what transpires but overall we can see the strategic sense of exiting the UK financial services market as a clearly sub-scale bank,’ he said.

‘With capital discipline, ongoing tight cost control, which is likely to embrace digitisation too, and much stronger solvency ratios, we see a Sainsbury’s equity that can build on recently elevated valuation multiples.’

[quepassa] 31/8/2021 15:08

Not necessarily. These things can take time.

There's a lot of rapid corporate activity/tidying in my opinion going on at Sainsbury's including most latterly the rumoured sale of their subsidiary, Sainsbury's Bank.

Owning a bank in the UK is a very serious and burdensome regulatory matter .

And those potential interested parties who may or may not be looking at the Sainsbury's supermarkets business would almost certainly not want to own a Bank or be subject to the enormous regulation of owning/running a bank.

There's a lot going on:

Winding down wholesale,
Rumours of selling off the Bank,
Stake-building,
Increasing press speculation,
Fierce bidding for a direct competitor.


Who knows but all this rapid corporate activity is in my opinion somewhat out of kilter with the normally slower and more measured Sainsbury's house style.

My guess is that if the latest press speculation is correct that Sainsbury's is in advanced talks to sell their Banking Unit to Centerbridge Partners, that the chances of the company subsequently becoming the subject of a potential bid would be further increased.

All speculation on my behalf.

But the fight for Morrison's demonstrates in no uncertain terms that the sector is most certainly in play.


ALL IMO. DYOR.
QP

[spob] 31/8/2021 14:09

After the Sunday Times induced price spike last week, If Sainsbury's had been in discussions with anyone, I'm pretty sure the FCA would have told them to declare it.

[dipa11] 31/8/2021 13:49

Bid is on card. And make sure the shorting has come down dramatically.Once shorting is reduced and bid will come with maximum price Be patience

[anhar] 31/8/2021 09:32

The more people repeat this tired bid story here, the more the price falls. There's no direct connection as we small investors can't influence a big cap like SBRY, but it's just ironic.

It may happen and as I've said, I hope it does for my own large holding. But people who buy on a spiked price bid rumour are mugs since almost all bid talk comes to nowt and the price then falls back sharply. Seen it all before a million times.

[m_kerr] 29/8/2021 18:05

even after this pullback, the shares are up about 40% year to date, so the takeover premium and morrisons read across has been factored in really. private equity are all about assessing risk, at this price the returns are modest, even with 70% leverage. morrisons was a straightforward one, with 86% property ownership and temporarily higher debt than normal which would have unwound in the year ahead. the fact two big rivals will now be in private equity hands, with very significant debts to service, should mean less intense price competition, albeit the sector is still cut throat.