Sainsbury (j) Share Discussion Threads

[netcurtains] 07/9/2020 11:11

s34icknote: So you poopoo the whole idea of a DIY boom? I have to say, I think you're wrong (I have mates working in building supplies trade so I pretty much know there is a boom - it just depends on how much of this boom is factored into the price, how much they are losing money on the non-DIY side and how much they lost during the lockdown..

[s34icknote] 07/9/2020 10:46

Bought Travis at 580 and sold at 830 around March !!Quality company !Toolstation good Wickes has come good and will be sold Not sure re Benchmarx their kitchens struggle vs Howdens .But fairly valued in this market .Good long term .I'm having a good run on Dnl and dddd at the moment !!Sicknote

[tardelli2] 07/9/2020 09:52

After 42 years in retail (JS) from age 16, I couldn't agree more . I had no qualifications other than an assortment of O levels but apparently I did have an abundance of common sense . I got my first store aged 29 and never looked back . I enjoyed a very good life and thoroughly enjoyed my work . Five company house moves ,two wives (two divorces) and six children later ,retired now with a good pension , I'd do it all again .

[netcurtains] 07/9/2020 09:37

s34icknote: Thanks - hope you got some Travis Perkins too then! LOL

[tim 3] 07/9/2020 09:26

Loganair

"most state pupils incapable of running and managing companies"

Sorry totally disagree with this have worked in retail over 35 years and have met numerous good managers at all levels up to director from "state schools".

Its generalising but successful managers from state schools typically need drive and determination to do well and understand what their customers want.I know many who left school at 16 and have successfully climbed the ladder and are very good at what they do as they have had to prove themselves every step of the way where as private school educated managers often lack ambition as they have always had a privileged upbringing and know even if they fail they can walk into another well paid job.They also often walk straight into a directors roll so have a poor understanding of what actually working on the shop floor is like and come up with ridiculous ideas that if they had actually done the job would know do not work.

Not all managers fall into the category good candidates come from both public and privately educated backgrounds.

[s34icknote] 07/9/2020 09:16

I'm with you on this net .Steady undermanning P/E ratio397 million free cashflow after finance costs !4 bn market cap is rock bottom with 30 bn plus turnover !Sicknote

[netcurtains] 05/9/2020 11:58

Offtopic:

loganair: this is a typical example of posh-boy-nomics and why its totally corrupt:


FROM YESTERDAY’S TIMES

A company that previously raised the price of a bipolar drug stands to make millions from the NHS after it withdrew a cheaper alternative despite concerns that this could lead to manic episodes in patients.

Essential Pharma, which was recently bought by a Swiss private equity firm, owns the rights to two brands of lithium carbonate tablets, a drug widely used to treat bipolar disorder and depression.

The price of one version has risen 2,600 per cent from £3.22 to £87 a packet under Essential Pharma.

The annual cost of lithium carbonate to the NHS is now likely to increase from £2 million to £17 million.

Ciara Ni Dhubhlaing, of the College of Mental Health Pharmacy, said that lithium carbonate was the “gold standard” and patients would need to stay on it despite the higher cost. She said requiring people to switch brands, and in some cases change the dose they take, would be “very concerning for patients”.

Ms Ni Dhubhlaing said that the same medicine in different brands could produce different responses. Any change could be destabilising, raising the risk of patients not taking the medication and potentially leading to bipolar patients suffering “a relapse into a manic state”.

Dr Ian Maidment, a reader in clinical pharmacy at Aston University, called Essential Pharma’s behaviour shocking.

Priadel accounts for 90 per cent of prescriptions for lithium carbonate tablets and is relatively cheap, at £4.02 for a packet of 100 400mg tablets. Essential Pharma, which obtained the rights to sell Priadel in Britain in 2018, said that “restrictions on permitted pricing” meant it was “no longer viable”. The company held talks with health officials to negotiate a price increase but chose to pull the brand, with supplies expected to run out in April.

[loganair] 05/9/2020 11:19

First Sainsbury's many months ago I posted that I thought the Sainbury's share price will fall to 150p and I still believe this to be the case as at the moment I can not see how they are going to get their margins up and therefore increase their profits.

I use to buy TU clothing for my children to run around and play in, however the quality of TU clothing has gone down so far that over the past two years I haven't bought any TU clothing at all for my kids.

Sadly also year after year after year shopping experience in Sainsbury's has gone right down hill and why now days my family do most their shopping at Waitrose instead of Sainsbury's.

I believe M&S success has nothing to do with where their products were made rather the quality of the product as the UK can make just as poor quality products as any where else in the world.

I have lived in both Capitalist and Communist countries and they are both as bad and as corrupt as each other as by human nature, humans are greedy and desire as much power and the highest pleasantness for themselves and sod everybody else.

Communism as nothing what so ever to do with Marxism while most people who describe themselves as being socialist only really want what is best for themselves, and their own family rather than caring about others and for products and services to be as cheap as possible.

I would describe myself as a Free Market, Conservative, Marxist.

[netcurtains] 05/9/2020 10:53

loganair: I'm a signed up socialist so we're not going to agree on politics.

I remember when M&S was a success and the reason was everything was made in the UK - even pants. All that is left of that great british manufacturing base is COATS (ticker COA) - price going up (a BUY).

As for Sainsburys: British Bulls has it as a buy with market update of (autogenerated so most likely not right buy ties in with my view):


Let’s jump on our white horses and go for a bullish ride. The bullish pattern that was previously identified is finally confirmed and a BUY signal is generated. Most probably, it is the right time to participate in bullish fervor. The market is telling you about a new profit. Do not miss this bullish opportunity.

[loganair] 05/9/2020 10:48

1. I was in a shop where a lady said the broom she had bought was better value then the broom I had bought from a different shop because her broom was twice as cheap.

I tried to explain to her that my broom was better value because it lasts 3 times longer..how ever hard I tried to explain the lady didn't understand the difference between Cheap and Value.

2. When things stay the same price often the quality of the product goes down so doesn't last as long, good example is M&S clothing.

3. I'm talking about sustained profits and not quick profits.

4. I totally disagree with you about directors coming from public schools as public schools train their pupils to think for themselves, stand on their own two feet and to become company directors while state school teach their pupils at all cost must not think for yourself and must be nannied thereby making most state pupils incapable of running and managing companies.

As for Alan Sugar similar to the chap who runs Sports direct, scums of the earth who have no real care for their employees or society in general.

5. When producing stuff, head count will go down as productivity goes up. In service industries the head count is kept as low as possible to keep the service being used such as holiday, hotels or night out as cheap as possible.

[netcurtains] 05/9/2020 10:22

Loganair: all what you say might be true in the LONG run but fall in price has got miles ahead of itself and thus its cheap.

I would like to see directors pay directly related to the number of employees they have in the UK (eg repatriation of work) and the average growth in salary for employees. If not employees then investment in the UK.

Quick profits too often mean doing work off-shore leading to the de-skilling of our own country OR not investing when they should just to earn a quick buck.

I would also make it illegal to have more than 50% of directors from private schools - we need more dell boys like alan sugar.

Any reduction in average wages or head count should lead to a CUT in director wages unless this cut is due to investment in the UK in new technology.

[loganair] 05/9/2020 10:02

It seems to me both Sainsbury's and M&S are failing due to the same reason.

From the 1970's to the early 1990's M&S clothed middle class Britain while at the same time middle class Britain shopped at Sainsbury's which both companies were very successful at doing.

From the early 1990's until today M&S mistakenly decided to dumped middle class Britain who they deeply understood and go into fashion which they do not understand at all while at the same time Sainsbury's mistakenly decided to take on the likes of Tesco and Aldi/Lidl which they still do not know how to do and therefore both companies are failing at.

It seems to me any company can market themselves on either, Price or Quality of product and/or that lasts longer.

Remember 'Cheap' often means 'Poor Value' for money.

I would much prefer to see Sainsbury being a highly profitable company with 10% to 12% market share rather then seeing their profits fall year after year trying to maintain 15% to 16% market share.


As for directors of companies I would like to see their pay based on profits (no bonuses) rather than the companies share price or EPS as this can be falsified by share buy backs. If a companies profits increase by 20% then the directors pay goes up by 10% and if a companies profits fall by 20% then the pay of their directors goes down by 20%.

[dexdringle] 04/9/2020 13:54

From the 2020 Sainsburys full year accounts - in his Chief Executive Officer 'letter' (page 4) Mike Coupe said "Sainsbury’s is a very different business today to the one I took over in 2014"

Too right it is. It used to make a decent profit !!

[netcurtains] 04/9/2020 13:11

loganair - you might be right but Sainsburys is an ABSOLUTELY MASSIVE SUPER TANKER and it has a very slow turning circle. Thus the fall in price has got miles ahead of itself - sure ONE DAY but not for awhile. Currently I'd say its dead cheap.

And if you want to know I use M&S locally (petrol station store) and for big shopping its a toss up between Waitrose and Sainsburys.

We go to Aldi at Christmas to get some cheap booze..

Cheers Net.

[loganair] 04/9/2020 13:06

I am not at all surprised as it seems to me Sainsbury's is the most poorly and inefficiently run out of all the supermarket chains and is absolutely clueless how to even stand up to the competition.

Like with M&S, both companies seem to have really lost their way and do not know what to do about it.

[netcurtains] 04/9/2020 11:52

Difficult to believe Sainsburys now has a lower market capitalisation then Morrisons

[netcurtains] 04/9/2020 08:51

buywell3: Its worth pointing out that looking at NAV per share, Sainsburys is the 9th cheapest share in UK stock market and the cheapest retailer by miles (using NAV to Market Cap). Next cheapest retailer (but its not close) is Morrisons.

[cl0ckw0rk0range] 29/8/2020 21:13

They need to get out more

[sooty snipes] 27/8/2020 09:14

Any mention of the divi returning anytime soon?

[clive7878] 25/8/2020 21:44

Visited Sainsburys Superstore, Hayes, Uxbridge Road - today at 21.30
75% of non-till staff had no face masks on and
20% plus customers did not either.
Surely not all of these people have got medical conditions.

There are still 1,000 new infections per day !!!!

Don't kill grannie !!!!

[tim 3] 25/8/2020 21:40

"buywell has single handedly tried to give ADVFN the heads up"

Very kind not to mention modest of you sir.

[loganair] 25/8/2020 18:50

Typical private equity firm, Apollo has already lined up £3.75bln of debt funding to fund their proposed acquisition of the Asda stake secured against the Asda stores.

The usual private equity, buy a company with debt secured against that company, load it up with even more debt to pay as a dividend to the private equity firm, then float the company at an exorbitant price to the private retail investor.

If Asda is floated on the FTSE in 5 years time, I wouldn't touch the shares with a barge-pole.

[loganair] 21/8/2020 07:33

Asda is being valued 60% higher than Sainsbury's while Sainsbury's has higher market share and makes higher profits than Asda does???


If Sainbury's was to be valued the same as Asda would give them a share price of 300p.