Sainsbury (j) Share Discussion Threads

[debsdowner] 19/6/2019 08:54

Markets will be looking at inflation figures at 9.30 am and could upset the market so not surprising a down start to SBRY.

[ny boy] 18/6/2019 15:41

Looks like a bottom is in here, hit bottom of down trend channel line.
(FUL) going well too, reasons to be cheerful

[robot ic1] 18/6/2019 12:51

Qantas good afternoon to you , black gold is hammering up.

Troubling times for debtors in the UK

2019 Bankruptcys is up on last year and will continue to rise .


Bankruptcy: This is the most serious option, which involves an official receiver being appointed to sell off your assets to pay your debts.

If you own a house or a car you may lose them.The number of people in England and Wales going insolvent due to unmanageable debt hit a seven-year high in 2018, figures show.

Personal insolvencies totalled 115,299, a 16.2% rise on 2017, the Insolvency Service said.

[s34icknote] 18/6/2019 11:43

Normally a good time to buy then !Sicknote

[debsdowner] 15/6/2019 18:29

Sainsburys a sell says IC Mag:

[debsdowner] 14/6/2019 12:51

No support Tesco outlined only a small increases in sales excluding booker and warned of tough highs street.

Share price could fall a lot lower yet a recession will only add to the downtrend.

[robot ic1] 13/6/2019 23:16

Fasten your seat belts they are ready to rocket upwards ,

[loganair] 13/6/2019 15:23

Sainsbury's seem not to be able top get anything passed anybody....


Housing secretary James Brokenshire has used his ministerial powers to refuse planning permission for a 471-home redevelopment of Sainsbury's supermarket site in east London – against the advice of his planning inspector.

The findings of a planning inquiry into Sainsbury’s proposals for its 3.1ha site at Whitechapel recommended Brokenshire to approve the scheme, drawn up by Unit Architects and carried forward by Ross Hutchinson’s successor practice Hutchinson & Partners.

But the housing secretary, in his just-published decision, said the scheme – which in addition to the homes would also have delivered a replacement supermarket, an energy centre and an educational facility – would have an unacceptable impact on light to existing homes and on neighbouring heritage buildings.

Sainsbury’s has the option of appealing Brokenshire’s decision at the High Court if it lodges papers within the next six weeks.

A spokesperson said the firm was “disappointed” with the secretary of state’s decision. “We are currently considering our options,” she added.

[loganair] 13/6/2019 09:15

It seems to me either Sainsbury's or Asda will disappear...Tesco's is too large and huge buying power while Morrison's having ever closer ties with Amazon and for the convenience stores sector McColl's.

Aldi and Lidl are huge world wide companies with massive buying power.

[tim 3] 13/6/2019 09:00

The IC article does hit on the basic crux of the matter, growth in its core market which will continue to be a problem for the foreseeable future.You can only cut costs so much.

And the competition from discounters and the lack of profitability in the growing online market show few signs of going away.

The competition Tesco in particular really seem to have their act together at present, the year sbry spent focusing on the failed bid has been a gift for them.

The restructure Sainsburys did also seems to have set them back by their own admittance more of their experienced staff left than they expected creating well documented problems which again need to be overcome.

Can see little to drive the share price up and plenty of reasons for it to drift lower.

[shareho1der] 13/6/2019 08:22

I sold yesterday because I don't like the fact that the bond conversation price will be lowered every time dividend is announced.

[investor2019] 12/6/2019 13:49

For many years, Marks and Spencer (LSE:M&S) and Sainsbury’s (LSE:SBRY) have looked like chronically ill patients that have tried on many occasions to convince their doctors that they can return to full health only to relapse again. Neither are currently at death’s door but I struggle to see how either of them can return to good health.

Both find themselves in a bad place due to one key mistake – they have failed to convince enough people that they offer value for money. Both are guilty of complacency on a big scale. During their days of dominating their patches of the retail market in the heydays of the late 1980s they grew too much by increasing prices while failing to innovate. This alienated their customers and left themselves open to competition that went on to eat their lunch.

Sainsbury’s may find itself in an even worse position. It has propped up its underlying trading profit performance in recent years by wringing costs savings from its acquisition of Argos. Its core UK supermarkets business has continued to struggle against the discounters such as Aldi and Lidl and a resurgent Tesco (LSE:TSCO) and Wm Morrison (LSE:MRW).

It’s not difficult to see why. I used to push a trolley around my local Sainsbury’s for years doing my family’s weekly grocery shop until I got fed up with it about a year ago. I got fed up with the prices of its fresh food, the empty shelves and the fact that it took an age to get through the tills when I’d finished because the company didn’t want to pay people to work on the checkouts. Many others have had a similar experience.

This failure of retailing basics can be put right with good management. What is more difficult is selling enough food profitably to cover the overheads of large superstores. Sainsbury’s tried to fix this problem by merging with Asda and using the benefits of lower buying costs to beef up its margins. Now that this has been blocked, it seems that there is no plan B.

In years gone by, Sainsbury’s would have been seen as a takeover target for private equity buyers. Now, the economics don’t stack up. It would take a very brave buyer to load this company up with debt and do large-scale sale and leasebacks of the store estate and increase its operational gearing in the process. But the main reason it is unlikely to happen is because there is no easy exit route that is all important in securing an acceptable return on investment.

As with M&S, there is next to no underlying growth in Sainsbury’s business. Without it, a sustainable profit and share price recovery looks impossible.

[smurfy2001] 12/6/2019 13:37

Could be interesting at 150p but at these prices it feels too expensive.

[ny boy] 12/6/2019 13:33

Dire, expected a bounce bottom of trend channel is around 185/190p, hopefully that will trigger a buy signal, must be a bid target now imo

[debsdowner] 12/6/2019 12:12

New thread

[debsdowner] 12/6/2019 12:11

!FOLLOWFEED
Sainsbury's one of the most shorted stocks and the competition from Aldi & Lidl continuing at a pace.

Speculation about Sainsburys going private

[debsdowner] 12/6/2019 12:02

Agreed strong sell.

[the_man_with_the_pink_gun] 12/6/2019 11:14

STRONG SELL

TARGET £1.68P

[the_man_with_the_pink_gun] 12/6/2019 11:13

STRONG SELL


TARGET £1.68P

[loganair] 12/6/2019 11:03

I agree with the article...what differentiates Sainsbury's from the other supermarkets, especially Tesco??

Price - NO
Quality - NO longer
Customer Service - NO longer
Quality of Shopping Experience - No longer

[debsdowner] 12/6/2019 10:38

Broken down does not look good imo and I have a good handle on retail stocks.

[loganair] 12/6/2019 10:16

Never mind Tesco, is the Sainsbury’s share price the one to buy now?


The J Sainsbury share price is down 35% over the past 12 months, exacerbated by the failure of the planned merger with Asda.

It’s a very competitive environment, and without the claimed economies of scale that a mega-merger could possibly achieve, it’s difficult for Sainsbury to compete with the onslaught of Aldi and Lidl on top of the UK’s already squeezed marketplace.

The slightly upmarket appeal of Sainsbury appears to have largely evaporated these days, and I don’t know how it’s going to differentiate itself in now that it’s all down to price, price, price.

Bank?

Actually, one possible approach is to provide more in-store services, as I was reminded on Tuesday when I read of the appointment of Jim Brown as the new CEO of Sainsbury’s Bank. There’s nothing earth-shattering in that, but then I think back to Tesco and its diversification into banking and things like that leading up to its over-stretching crisis.

Sainsbury’s Bank seems to doing reasonably well, though operating profit from the company’s financial services (including Argos Financial Services) dropped to £31m in the 2018-19 year. To put that into some perspective, RBS reported operating profit of £1bn in its first quarter this year. And Sainsbury’s itself recorded a retail operating profit of £692m in the year just ended.

It’s only a few weeks ago that Tesco told us it was quitting mortgage lending, and was considering ways to dispose of the business entirely. As Kevin Godbold put it, “providing mortgages looks like another commodity-style pursuit with precious little to differentiate between one provider’s offering and another’s.R21;

No differentiation:

When the main service a company is providing is a non-differentiated commodity, I don’t think adding more non-differentiated commodities is really providing much of a competitive advantage. We already have a very effective and efficient one-stop shop for all our run-of-the-mill stuff — it’s called the internet.

No, it seems to me that for a supermarket to compete, it increasingly needs to do so on price, so how do Sainsbury’s and Tesco shape up on that score?

I know some of my colleagues are seeing Tesco at least as an attractive long-term buy at the moment. Looking at current forecasts for it, predicted EPS rises would drop the forward P/E to only around 12 by 2021, and the dividend would be up to a yield of 3.9%. And I’ll admit that looks like a tempting valuation right now.

And a look at Sainsbury’s shows a valuation that, on the face of it, looks even more attractive. Here we’re talking about an even lower 2021 P/E of 11, with a dividend yield of 4.6%.

Further ahead:

But I think we need to look to the greater future here, and I reckon Edward Sheldon has picked up on that very well. He points out that consumer data experts Kantar Worldpanel saw no growth from Tesco or Sainsbury in the 12 weeks to 19 May. And that’s during a period when Lidl sales grew by 11.1% while Aldi recorded an 8.5% jump.

City analysts might be predicting decent growth for both over the next few years, but I don’t yet see where it’s coming from. In fact, I can see all of our big supermarkets experiencing a tighter and tighter competitive squeeze. And that, to me, is not an enticing prospect for my retirement investments.

[robot ic1] 12/6/2019 08:39

Qantas ,good morning to you ,

Sainsburys shares hammering up.