Sainsbury (j) Share Discussion Threads

[the grumpy old men] 04/7/2019 11:50

invezz


Sainsbury’s share price: Analysts weigh in on Q1 results
Tsveta Zikolova Tsveta Zikolova July 4, 2019 2 min read
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Hargreaves Lansdown reckons that the real challenges for J Sainsbury (LON:SBRY) are coming from the industry, Citywire reports. The comments came as the blue-chip grocer updated investors on its first-quarter performance yesterday, posting a fall in sales and cautioning that retail markets remained “highly competitive and promotional and the consumer outlook continues to be uncertain”.

Sainsbury’s share price fell in the previous session, giving up 0.53 percent to close at 198.45p. The stock underperformed the broader UK market, with the benchmark FTSE 100 index extending its rally and adding 0.66 percent to 7,609.32 points. This morning, the grocer’s shares have gained ground, having climbed 1.59 percent to 201.60p as of 08:18 BST, as compared with a flat Footsie.

Sainsbury’s faces industry challenges

Citywire quoted Hargreaves Lansdown analyst Sophie Lund-Yates as commenting yesterday that the latest dip in Sainsbury’s sales was not ‘a complete surprise,’ pointing to tough comparisons with the prior year’s figures, when the royal wedding boosted sales.

“Looking ahead, the group said conditions are set to remain uncertain,” she said, adding that the supermarket sector was “still seeing competitive pressure, meaning the likes of Sainsbury’s are being forced to push prices down across core products”.

“So, while last year’s strong performance makes this trading update harder reading, the real challenges are coming from the wider industry,” the analyst concluded.

Other analysts on blue-chip grocer

The BBC meanwhile quoted Thomas Brereton, retail analyst at GlobalData, as commenting that the price cuts showed that Sainsbury’s was ‘trying to compete,’ while cautioning that “its more premium image means it will continue to stumble if it tries to overcome its competitors on price”.

Shore Capital reaffirmed the blue-chip supermarket as a ‘sell’ yesterday, without specifying a target on the Sainsbury’s share price. According to MarketBeat, the FFTSE 100 group currently has a consensus ‘hold’ rating and an average valuation of 236.60p.

[ny boy] 04/7/2019 10:31

Looks to be bottoming out, same with VOD etc

[adrian j boris] 04/7/2019 09:41

SBRY UBS Neutral 650.00 - Unchanged


Is that a fat thumb or will it pull out a plum


a very strange swiss compromise or just helping out a small arab gulf state with a
gigantic sovereign fund

[s34icknote] 04/7/2019 08:31

Looks like back to 220pSame as iag kgf .All adding back ten percent .Sicknote

[konradpuss] 03/7/2019 19:18

I am not a holder although I follow this sector as I have an exposure elsewhere - Tesco Plc. I think this is a value trap. Sure the discount to NAV looks attractive, the business does not. I must say I never liked the Argos buy as it took Sainsbury down market. I was more worried that Amazon etc. has this sector in the bag. Look at what Tesco did - booted Tesco.com.

Sainsbury is not a basket case, however I think Coupe is the wrong man to take it forward. They also need to buy back their freeholds for flexibility going forward.

Sorry I am not a buyer with Coupe at the helm of the good ship Sainsbury and it is a good ship with a bad captain. By the way he was never going to succeed with the ASDA purchase. This was confirmed by an eminent competition Q.C. who wrote a letter in the F.T. when the bid was first announced.He nailed it and said 'not a hope in hell'. First thing - go take the best advice you can.

[s34icknote] 03/7/2019 18:56

Some chunky sales going through Hopefully the seller will clear !Sicknote

[chiefbrody] 03/7/2019 17:53

Always debating on whether to buy back the 75% i sold.I like the Sains brand but the company does not have shareholders interests in mind. At all. Imo.I know theres a balance to be struck between keeping up appearances for this well loved (once anyway) brand and make making a decent profit but they've not had the right balance for ages.Coupe might be a nice guy and all that but in this desperately cut throat sector, you need some balls too.So i'll probably sit on my free 25% for a while longer and keep a watching brief to see it there's any light at the end of this huge dark tunnel they've been wading through for what seems an eternity.

[spob] 03/7/2019 16:38

" they are astute and have the best advisors , i am sure they will get their money back as they can afford to wait for the good days to roll in again "

after adjusting for the time value of money, they will never get their money back. imo

[nick rubens] 03/7/2019 16:09

Quatar Inv Authority can do as much as any shareholder, which is very little, unless they act to put in their own board. Companies are generally run by directors and not the owners.

Not specific to Sainsbury's but directors in general.

Directors are generally not entrepreneurs but tend to drain cash resources as salaries while failing the owners and such while claiming to be focused on shareholder value.

National Living Wage rates have also impacted on profitability.

I wish I could be more optimistic as Sainsbury's is the only supermarket (except M&S) that I always recommend to family and friends for it's own labelled products, guaranteed to be of top quality

I tried some Lamb minted kebabs from Aldi and will throw the rest away. I felt I was eating a Fatberg. I should have known better, but wanted to try for myself. Back to Sainsbury's for real and healthy meat with the Sainsbury Label.

[grupo guitarlumber] 03/7/2019 14:23

loganair
3 Jul '19 - 14:01 - 20058 of 20059
0 0 0
The surprising thing to me is what are the Qatar Investment Authority doing about Sainsbury's as they paid around £6 a share for their 1/4 stake in the company.
jordaggy
3 Jul '19 - 14:17 - 20059 of 20059
0 0 0
Think they were sold a pup!


LOL More like a minature puppy

this investment is mere pocket money

they are astute and have the best advisors , i am sure they will get their money back as they can afford to wait for the good days to roll in again

[smurfy2001] 03/7/2019 14:21

Still think lower lows to come.

[jordaggy] 03/7/2019 14:17

Think they were sold a pup!

[loganair] 03/7/2019 14:01

The surprising thing to me is what are the Qatar Investment Authority doing about Sainsbury's as they paid around £6 a share for their 1/4 stake in the company.

[nick rubens] 03/7/2019 13:45

I'm a big fan of shopping at Sainsbury for it's own brands which are superb quality.

I was a long term shareholder but changed my mind, seeing the struggles against the discounters, even though the discounters sell a worse quality of meat products.

Sainsbury were untainted on the horse meat scandal, the others were all sucked into it, such is their quality non control.

It's a great shop but shareholders will struggle to make any money IMO. Great for employment but shareholders will suffer continued fall in sales.

I think 150p is realistic longer term unless something surprising and revolutionary comes before then. How long is the current dividend safe for?

Who could even comprehend being under 200p a couple of years ago?

[loganair] 03/7/2019 12:32

The Argos deal was buying a low margin business with much of the savings coming from moving Argos stores out of the high street and bringing them into larger Sainsbury's stores and hopefully increasing footfall which doesn't seem to have been the case when it comes to footfall.

[poikka] 03/7/2019 10:03

Careful - you've hit the nail on the head, there.

Once again, I'm going against the grain by supporting Coope - the Argos deal was brilliant and the upgrades are storming along. The Asda deal would have worked very well, also, and I think that they were unlucky to have lost that one.

The discounters' growth will eventually slow down, and the big supermarkets will continue to improve their competitiveness with a much greater range.

[poikka] 03/7/2019 09:56

Loganair - "Irrespective on my investment, I'm one of the unusual folk who will write both negative and positive posts on the same company.

I'm not one of these who write postive posts when invested and negative when not invested."

Quite right, logan, just wondered why you posted so many negative posts about a share. I guessed that you weren't invested.

I sometimes post negative comments about companies that I'm invested in, but soon sell if I reckon that they're not worth holding.

But always good to hear differing points of view about shares, so I'm in no way suggesting that you shouldn't post negative comments.

[konradpuss] 03/7/2019 09:48

Imperial3, I think that loganair could be correct.

Let's hope Coupe actually knows how to 'stick to the knitting'. I have my doubts.

[imperial3] 03/7/2019 09:36

loganair.

I completely disagree with you when you think that the share price will fall to about 150p.I believe that will never happen.

[careful] 03/7/2019 09:21

Share is steady now.
With a £29bn turnover SBRY could do well if it is tightly managed with financial discipline.

Coop has to concentrate on his day job now, no more exciting deals, just retailing.
Retail is detail, and if he executes his strategy correctly including the integration of Argus and store updates, this could do well.

Most customers are loyal to the store they use in the most convenient location.

[loganair] 03/7/2019 09:13

Irrespective on my investment, I'm one of the unusual folk who will write both negative and positive posts on the same company.

I'm not one of these who write postive posts when invested and negative when not invested.

[poikka] 03/7/2019 08:48

Guess that you're not invested in Sainsbury's, loganair?

[loganair] 03/7/2019 08:31

I'm not surprised to see clothing sales have declined so much as I've been posting this year how TU clothing has declined in quality.

I use to buy TU clothing for my children as their play clothing, sadly the jogging bottoms they only put on 4 months ago have already worn into holes when before the quality was such they would last until the little ones had out grown them.

[poikka] 03/7/2019 07:59

I'm going against the grain here.

The upgrading of their supermarkets must have hit sales, judging from what I've seen at their big Hedge End store. The disruption there is massive, although they're handling it well. When its completed, it's going to boost sales. Multiply that across the stores undergoing similar improvements and the sales decline doesn't look unexpected - in fact I'm surprised that it wasn't greater.

I'm holding in anticipation of better sales next year.