Sainsbury (j) Share Discussion Threads

[tuftymatt] 19/5/2022 09:22

No doubt there are plenty out there like that but my concern isn't with them.

Money management of disposable income is something we all need to manage ourselves but those that don't have disposable income anymore and are struggling to feed themselves and their families will always have my best wishes and help where I can.

[loganair] 19/5/2022 09:09

Less socialising by many will be needed, less going to Starbucks or costa coffee, no more buying unnecessary 72" TV's or the latest smart phone, stopping their many subscriptions to the likes of Netflix will save the average person circa £600 per month.

And also drastically cut back on buying throw away fashion from the likes of Primark, buying enough clothing that would last me a life time which how ever only lasts these shoppers the season as often only wear once or twice then throw the item away.

[tuftymatt] 19/5/2022 07:10

loganair,
The inflation in agriculture is already over 30% and this hasn't really been passed on yet according to a report I saw on the BBC the other day. They anticipate this will start to hit food prices come the autumn just as the next energy price cap is due to go up too!!

There is no doubt things will be very tough for so many in 5 months or so and I dread to think how those suffering today will be by then.

It's terrible when you see food banks in the UK that historically have shipped 80% of donations to eastern Europe / Africa are now providing that amount to their local UK community!! If donations drop, which they will do and local demand rises then there will be a lot of very hungry / starving people out there this winter.

[rolo7] 18/5/2022 22:32

Big share volume at close!

[loganair] 18/5/2022 21:45

I've been hearing that food in put prices for the food retailers is rising by between 18% and 40% and sooner or later they'll have to pass much of this on to their customers.

With the cost of fuel these days, is it really worth driving an extra 5 to 10 miles just to shop at an Aldi or Lidl instead of Sainsbury's.

Our local Waitrose is a busy as ever with no one complaining about the increase in the cost of living.

[westdean] 18/5/2022 21:21

Higher interest rates, tighter money supply, soaring inflation, tougher financial conditions for an average grocery shopper, aren't all these factors going to conspire to drive people away from the likes of Sainsbury to no-frill retailers such as Aldi, etc? Where is the case for being long in Sainsbury? Regardless of what the true underlying value of this stock is, is it wrong to assume that the share price would continue to suffer in the current climate? I would welcome any useful constructive comment from anyone. So please do not be bashful or inhibited, get posting. Your views and sentiments are very important. It is precisely these that, for better or worse, drive the market.

[yf23_1] 17/5/2022 23:13

Poor capital expenditure versus depreciation according to IC.

[loganair] 17/5/2022 15:51

Sainsbury's cannot match Tesco, says Barclays:

On a price/earnings basis, Tesco is seen as more expensive than Sainsbury, however Barclays believes Sainsbury’s will return no surplus cash to shareholders until at least 2024/25, and sees no way it can match Tesco’s cash yield for the next three years.

[yellowstoneadvisory] 13/5/2022 12:02

Yellowstone Investor Webinar.
James Collins, Director of Investor Relations at Sainsbury’s plc will present a full overview on the company, its strategy and the outlook for the coming year. The preliminary results were announced on the 28th April which reported volume growth of 4.2% ahead of other other Big 4 supermarkets and a 25% increase in underlying profit before tax. There will be a Q&A session at the end where you can ask questions.
Wednesday 1st June at 1pm
Register:

[philanderer] 13/5/2022 10:32

fwiw

HSBC cuts Sainsbury price target to 240 (315) pence - 'hold'

[loganair] 13/5/2022 09:40

Another lot of share options for useless directors.

Personally I would like to see far stricter and higher criteria's needed in order for directors to be issued with shares from their share options, such has 10% increase in profits per year and 10% increase in margins per year rather then being based say for example on the share price which can easily be manipulated.

[rolo7] 13/5/2022 08:01

nice bonus for director share options last night 2.7million shares totaling over 6£million worth.

[ny boy] 13/5/2022 07:48

Yeah, that’s about it Tim and hold for an eventual takeover.. within the next 10 years!

[tim 3] 08/5/2022 16:25

I doubt you will ever get rich with sbry but buying decent dips and pocketing/ reinventing the Dividend is not a bad strategy here imo.

[tuftymatt] 08/5/2022 15:51

That's great and is in line with why I got into this one recently.
Strong divi and now being viewed as a value stock should be enough to see it hold up well in difficult market conditions 👍🏻

[unastubbs] 08/5/2022 13:31

Buy recommendation from Questor in The Sunday Telegraph today

[loganair] 06/5/2022 17:31

The owners of Asda Group Ltd. are considering piling debt onto the supermarket chain to raise the money to buy Boots, another fixture on U.K. high streets.

Brothers Zuber and Mohsin Issa, alongside TDR Capital LLP, have discussed saddling the supermarket with as much as 4.5 billion pounds ($5.6 billion) of additional debt, on top of the multi-billion pound package that funded the firm’s buyout last year, according to several people with knowledge of the matter who asked not to be identified because the talks are private.

The new debt will go toward the approximately 7 billion-pound asking price for Walgreens Boots Alliance Inc.’s international drugstore unit and could come alongside other, riskier forms of borrowing to reduce the brothers’ and TDR’s equity contribution, the people said. They are also considering selling off Asda assets to raise the money for the equity stake, they added.

Asda’s owners will look to use loopholes in the supermarket’s existing financing documentation and space within its permitted debt baskets to raise the additional cash. By combining earnings with Boots, Asda will be a much larger entity than it already is, enabling it to carry more debt.

It’s unclear whether Asda will maintain its BB credit rating if it introduces this additional financing to purchase Boots.

With Asda’s existing secured bonds yielding between 7% to 7.5%, that is a being used as a minimum reference point for pricing any new debt. The financing could be more expensive, given where the market is pricing new issues.

[rolo7] 05/5/2022 19:54

Do u work for sbry?

[loganair] 05/5/2022 16:59

And what is Sainsbury's doing at the moment??? - Sainsbury's management have absolutely no vision what so ever on how to move the company forward except price matching with other UK supermarkets.


Asda's billionaire owners the Issa brothers are involved in £12 billion talks to merge their EG petrol forecourt business with Canadian firm Couche-Tard who runs 7,000 convenience stores in the U.S. as well as stores and fast food restaurants in Canada and Northern Europe.

If successful, the merger of the two companies would have over $70 billion in annual sales and 21,000 fast-food restaurants, petrol stations and grocery stores.

It could also help unlock billions of pounds towards a potential takeover tilt at high street chemist Boots.

It comes after the Issa brothers finalised a deal to take on almost 300 forecourts in Germany worth €485million. EG Group has acquired OMV Deutschland GmbH, the company behind 285 service stations, as long as they sell 48 stations, 24 Esso stations and 24 OMV stations in Baden-Württemberg and Bavaria

[debsdowner] 04/5/2022 14:47

Both BooHoo and Joules are having bad trading both issued bleak statements today, retail is not the sector to be in at the moment.

[unastubbs] 04/5/2022 08:27

Emma Powell (Tempus - The Times) today - HOLD

[loganair] 29/4/2022 11:58

John Moore, senior investment manager at Brewin Dolphin, commented: “Broadly speaking, Sainsbury’s has posted a good set of results for the past 12 months, but all eyes are on the impact of inflation in the year ahead.

“The supermarket expects the higher cost of living to hit profits, and it will have a difficult balance to strike between helping customers, upping staff pay, and maintaining its commitment to shareholders.”

However, he noted that the group’s self-help measures taken in recent years on debt reduction and cost management have also strengthened its balance sheet.


NAM Implications:

These profits will become a consumer issue when soaring inflation hits the shelves…

Whilst suppliers will want credit for their input…

Both Tesco and Sainsbury’s results will add further pressure on the two Private Equity mults (Asda & Morrison)…

Anticipate an escalation of ‘early signs of customers being a bit more cautious, watching every penny, every pound’.

[loganair] 29/4/2022 11:53

Following today’s release of Sainsbury’s figures for FY2021/22; Honor Strachan, sector head for food & grocery at GlobalData, a leading data and analytics company, offers her view: “While Sainsbury’s has this morning reported an impressive 25% uplift in underlying profit before tax on 2019/20 (+104% on last year), reaching £730m, the market has responded to the grocer’s downcast forecast for the current financial year with profit guidance of £630m to £690m – at worst a 13.7% decline on 2021/22. Continued cost savings across the business – including integrating supply chains in the general merchandise division and reducing front of house store costs such as closing instore cafes and hot food counters – will not be enough to offset the investment it is making in price to limit the impact of inflation for customers and to protect volume performance.

“Over the year, Sainsbury’s has rightly invested in its value position and has recently extended its Aldi price match scheme which now includes 150 fresh products. This was essential to help shift consumer perception that the grocer is more expensive than rivals, especially now that we are in a period where consumers are looking to trade down and make savings. Sainsbury’s has also invested in product quality and innovation, namely in its Taste the Difference range (15% sales growth on 2019/20) which it must leverage as consumers consider trading down from branded goods to private label alternatives. However, we do expect a level of trading down across its private label price architecture which will impact revenue and margin performance.

“In recognition that core grocery will fail to deliver substantial revenue or margin gains over the next few years, Sainsbury’s is targeting growth areas such as food service and rapid delivery to supplement its performance. Instore third party foodservice outlets and takeaway/delivery services should benefit footfall and instore dwell time but rivals have tried and failed before with similar concepts and we expect consumers to cut back on eating out this year as budgets are squeezed. We expect the online and convenience channels to outperform superstores this year, particularly as urban footfall continues to improve – stimulating demand for food-on-the-go.̶1;

[philanderer] 29/4/2022 10:57

JPMorgan cuts Sainsbury price target to 190 (230) pence - 'underweight'