Sainsbury (j) Share Discussion Threads

[poikka] 18/9/2020 10:03

It won't do any harm to have what I assume will be an activist investor o.b., but SBRYs are already well aware that they need to do something to improve their performance.

They've upped their advertising, and they've restarted nectar points coupons, but there's something just boring about their stores.

[netcurtains] 18/9/2020 09:20

Mercer95: Royal Mail went up from 170 to 240 - so you're right 100% was poetic licence for "a heck of a lot"
you ask "Whats royal mail got to do with sainsburys" - read the article from the link.
Its not a question you should ask me, ask the journalist in the Money Mail (see georgeo1's link below)

[mercer95] 18/9/2020 09:16

What’s Royal Mail got to do with Sainsbury’s & it didn’t go up 100%, just because these threads are free don’t talk nonsense ffs

[netcurtains] 18/9/2020 08:59

georgeo1: Thanks for sharing article. Looks good news Royal Mail went up 100%

[georgeo1] 18/9/2020 08:54

https://www.google.com/amp/s/www.thisismoney.co.uk/money/markets/article-8744741/amp/The-Czech-Sphinx-Sainsburys-fourth-largest-shareholder.htmlThis is probably why.

[mercer95] 18/9/2020 08:38

Share price is popping, maybe news about the dividend is pending, whatever, just carry on going up 👍

[netcurtains] 18/9/2020 08:08

Be nice to finish in the blue again.

[loganair] 17/9/2020 15:47

Pzena Investment Management - 25 August 2020 - 5.0289% - 111,810,028 shares


Position of previous notification N/A

[s34icknote] 17/9/2020 15:43

Lots of buying going on !220p first target !

[lochgarman] 17/9/2020 15:42

I just LOVE a short squeeze!!

[loganair] 17/9/2020 15:20

Czech billionaire investor Daniel Kretinsky's VESA Equity Investment became the fourth largest stakeholder of Sainsbury's, owning a 3.05% stake ( 67,746,707 shares) in the British supermarket group, according to a filing on Thursday.

Kretinsky, who forged one of Europe’s largest energy groups through more than a decade of deals, has been diversifying and scouring retail, media and other areas for investments.

Another vehicle owned by Kretinsky, EP Global Commerce, is also a major shareholder in German wholesaler Metro.

VESA Equity's portfolio also includes stakes in U.S. retailer Foot Locker Inc and department store chain Macy's Inc, data from Refinitiv Eikon showed.

[muffinhead] 17/9/2020 15:09

Ocado post two hours ago




Maybe if Ocado bids for Sainsbury's.... The old logic of merging Sainsbury/Marks & Spencer gets a leg up?

[netcurtains] 17/9/2020 10:47

Next doing well this morning so I guess the clothing side of Sainsburys is probably doing well too.... Nice to see blue this morning..

[netcurtains] 17/9/2020 07:53

Interesting news from USA regarding food / retail sales for AUGUST:

Advance Estimates of U.S. Retail and Food Services
Advance estimates of U.S. retail and food services sales for August 2020, adjusted for seasonal variation
and holiday and trading-day differences, but not for price changes, were $537.5 billion, an increase of 0.6
percent (± 0.5 percent) from the previous month, and 2.6 percent (± 0.7 percent) above August 2019. Total
sales for the June 2020 through August 2020 period were up 2.4 percent (± 0.5 percent) from the same
period a year ago. The June 2020 to July 2020 percent change was revised from up 1.2 percent (± 0.5
percent) to up 0.9 percent (± 0.2 percent).
Retail trade sales were up 0.1 percent (± 0.5 percent)* from July 2020, and 5.1 percent (± 0.7 percent)
above last year. Nonstore retailers were up 22.4 percent (± 1.4 percent) from August 2019, while clothing
and clothing accessories stores were down 20.4 percent (± 1.9 percent) from last year.

[netcurtains] 16/9/2020 09:11

food for thought

[netcurtains] 15/9/2020 19:15

I think retail sales figures for USA come out tomorrow at 1:30pm...

[tim 3] 15/9/2020 16:06

Have always said the Argos aqesgtion was one of the few good things Coupe did (and maybe caused him to get carried away and go for the Asda merger when everyone and their dog knew it would not get passed).Its a low cost business which has a very slick logistical set up with same day delivery/collection on thousands of items.It gives every Sainsburys store access to far more products than any of the competition.

[netcurtains] 15/9/2020 15:40

cl0ck0rkOrange: If anything buying Argos turns us into an Amazon on the cheap.. If you think about it, Sainsburys is an Amazon up and running - its worth a trillion at least once we get that Nasdaq quote.

During lockdown Argos must of made a mint!

[essentialinvestor] 15/9/2020 15:40

login, agree with your sentiments.

We have seen this countless times, from Debenhams, to AA. To AML... etc.

There was a quality article from the FT on AML, published before flotation:

'Beware a private equity wolf in sheep's clothing'

I posted that on the AML board pre listing.

[loganair] 15/9/2020 14:39

Tempted by the Sainsbury’s share price? Let’s examine the facts:

Sainsbury’s share price – recovering or ailing?

Market sentiment has been against Sainsbury’s for some time now. Its share of the UK grocery market has declined from around 17% at peak to 14.9% currently, whilst the expensive failed merger with Asda dented confidence in the group management. Although the pandemic has led a surge in grocery demand, this has been through the less profitable channel of online sales. Analysts also expect around £500m of pandemic related costs, forcing a delay in store investment.

It is also interesting to note that Sainsbury’s depends heavily on non-food sales, driven mainly by its acquisition of Argos. This element of choice purchases by consumers leaves it more vulnerable to the economic downturn that we now find ourselves in.

The final dose of bad news for investors comes in the form of the ailing bank. After requiring significant capital injections over the last two years, the expectation is that a further £350m could be needed to cover bad debts and write-downs until 2023. The period of historically low interest rates also makes generating profit from banking difficult.

summary:

Given these significant headwinds, I can’t see any basis for investment, so I’m avoiding the Sainsbury’s share price for now. Indeed, it has declined further since the April examination.

However, if you do like the look of the supermarket sector in general, I see reasons to be optimistic in Morrisons latest trading statement.

The share price is nearly identical to Sainsbury’s, but Morrisons is yielding a superior dividend, and has lifted its interim payout by 5.7%. Although half year profits fell significantly, the rise in like-for-like sales excluding fuel sat nicely at 8.7%, leaving it well placed to focus on improving profitability. Similar to Sainsbury’s, a portion of this growth was through the online channel, but crucially Morrisons is starting from a smaller online and delivery presence than its rivals, and as such has more room to grow. The strengthening of its relationship with Amazon also gives more room for expansion in this area.

In announcing expectations of improved free cash flow, reduction in net debt and underlying pre-tax profit, I see a momentum in Morrisons that Sainsbury’s lacks, and as such the former’s shares are worth a very close look from potential investors in my opinion.

[loganair] 15/9/2020 14:30

A number of high-profile hedge funds are again ramping up bets against UK supermarket giant Sainsbury’s.

Third Point, along with AHL and GLG Partners, Man Group’s systematic and discretionary hedge fund units, have increased their short positions in the UK supermarket giant recently, according to regulatory disclosures made to the FCA since the start of September.

BlackRock Investment Management has also built a 2.65 per cent net short in the FTSE 100 company, while Citadel and Pelham Capital also maintain negative wagers against what is now regarded as the UK’s most shorted stock.

Sainsbury’s share price has fallen over the summer, from a June high of 209p to a low of 179.15p at the start of September, and has continued to trend downwards over the past fortnight, dipping 2 per cent at one point last week.

More recently, though, Sainsbury’s has reportedly lagged the performance of competitors such as Tesco, Lidl and Aldi, and CEO Simon Roberts has warned of “materially increased costs” for the company.

In a July statement, Roberts said: “The coming weeks and months will continue to be challenging for our customers and our colleagues and we do not expect the current strong sales growth to continue.”

[dexdringle] 15/9/2020 14:26

They can only make themselves rich if people are stupid enough to lend them money and / or buy the shares when floated.

I think those days are over. Things like Aston Martin were literally taking the pi$$. £19 a share float down to 30p.

Everyone is wise to this now unless fund managers support them with other peoples money.

[tim 3] 15/9/2020 14:15

With you on private equity takeovers.

Nothing short of criminal with only one objective making themselves rich.

Same happened with Comet takeover