Sainsbury (j) Share Discussion Threads

[pierre oreilly] 30/4/2020 09:38

Not should be more.

[pierre oreilly] 30/4/2020 09:38

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 09:28

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 09:14

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 08:49

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 08:30

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 08:08

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 08:01

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 07:40

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 07:33

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 07:33

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).

[ny boy] 30/4/2020 07:20

Usual dull numbers, no divi will upset some, I just want capital growth, added more to (SAGA) instead as more likely to show a strong recovery imo will give these the benefit of the doubt for now, see whether any funds start buying here later.

[mercer95] 30/4/2020 07:03

However, given the wide range of potential profit and cash flow outcomes, the Board believes it is prudent to defer any dividend payment decisions until later in the financial year, when there will be improved visibility on the potential impact of COVID-19 on the business.

[albert3591] 30/4/2020 07:00

Don’t you. Pay tax on capital gains

[farrugia] 30/4/2020 06:59

i don't know why people consider no dividends as a negative - dividends are not a great way to get value out of shares as they are taxable. No dividends = more cash in company's coffers.

[keelstow] 30/4/2020 06:57

For the time being at least

[rolo7] 30/4/2020 06:51

No dividend

[farrugia] 29/4/2020 20:13

thanks tim let's see what happens in the coming days.

[tim 3] 29/4/2020 16:37

loganair

Am not an expert on logistics but have had some experience basically everything is packed on the large artics from the distribution centre to use space to the absolute optimum,If they are separated into customer drops at the distribution centre as you suggest then you would effectively have to have smaller crates for each customers delivery which takes up much more space than cages filled with stock this and the fact that even then when the dellivery gets to store you would still have to add bakery items and other items which are not in stock at the distribution and the fact you would have to employ extra people at distribution centres to pick customer orders would mean the time and cost savings would be lost.imo but hey you might be right but I really think if it was viable they would have done it already.
Probably best to agree to differ on this rather than clog up the thread.


Frarrgula

You are spot on it is generally accepted that online loses money for supermarkets when all the costs of vans, maintenance, fuel, staff and logistics are added especially with delivery charges so low.

Well done on Dixons btw great spot bet your happy today!

[farrugia] 29/4/2020 15:13

i bought quite a few here - i can't see how they could have suffered - even their argos branches must be benefiting - people buy from the argos site just like dixons carphone and can get it delivered or collected from a sainsburys supermarket. Less competition. Dixons released a statement today and it was upbeat (even with all their offline stores closed!)

[farrugia] 29/4/2020 14:29

i can't see how online can be more profitable for supermarkets - someone has to pick up the items clients orders one by one and then there is a cost to deliver the goods with a van.

Automated sorting costs too much in terms of robot technology.

[ny boy] 29/4/2020 14:28

Bought in for the results at just over 200p, this safe long overdue market loving, please give me a 10% return! Not a great fan but surely they can’t mess up this unique and unexpected opportunity, do I have confidence in the board, well a small amount, hence not betting the farm on this one