Sainsbury (j) Share Discussion Threads

[lochgarman] 14/4/2021 17:42

He is not the only value investor invested here.

[debsdowner] 14/4/2021 14:16

Speculation that Sainsburys could go private



The sector is still competitive, TESCO saw a 20% decline in profits due to covid but an increase in sales.

SAINSBURYS is a good brand name however.

The latest news could prevent a serious decline in the share price.

[yokelee] 14/4/2021 13:50

He is a value investors, surprised he would make a bid for Sainsbury

[chiefbrody] 14/4/2021 13:08

If i had a few spare billions then i'd buy Sains.Plenty of opportunities to reduce inefficiencies and improve profits.Probably wouldn't have to pay much more than 10 times future annual profits..

[loganair] 14/4/2021 12:32

The catalyst was news that Czech billionaire Daniel Kretinsky has raised his stake in the supermarket from just over 3% to 9.99% through his Vesa investment group. He bought the extra shares over the weekend from the supermarket's long term investor the Qatar Investment Authority, which as a result has reduced its own shareholding to 15.02%. Vesa originally bought shares at around 190p each last September.

Analysts at UBS said: "QIA's stake reduction from 22% to 15% seems to coincide with the simultaneous increase in Vesa stake of 3% to 10%. We see this as a small positive This removes a potential overhang of QIA stake as that is absorbed by a willing buyer who could look to raise the stake further and as such we see it as a modest positive.

Sainsbury faced two bids in 2007 - from a private equity consortium and Qatari group Delta Two - but neither came to anything.

It's own attempt to merge with Leed's based Asda was blocked on competition grounds, but the subsequent purchase of Asda for £6.8bn by the Issa brothers put Sainsbury back in the takeover spotlight.

As for Vesa, it made a failed bid for German retailer Metro in 2019 and Kretinsky - who also owns Sparta Prague football club.

[imperial3] 14/4/2021 12:15

All this has done nothing for the share price.So far,today, it has gone down a bit.

[chiefbrody] 14/4/2021 12:07

Probably fed up with the way the company is run (which has no regard to shareholders).

[loganair] 14/4/2021 12:03

If Sainsbury's represents such good value with its current management why has the QIA sold 40% of its stake in Sainsbury for less then half what they paid for it in the first place, making a c£300mln loss on this 10% they have just sold.???

[loganair] 14/4/2021 11:56

Sainsbury’s could be the next major UK supermarket be bought out in a private takeover deal after a leading investor bought £300 million in shares.

Speculation surrounding a possible takeover bid for Sainsbury’s has been ignited after Daniel Kretinsky, billionaire owner of Vesa Equity Investments, increased his company’s stake in the grocer to 9.99 per cent.

Kretinksy, a major retail investor who owns 40 per cent in German wholesaler Metro, purchased £300 million worth of shares in Sainsbury’s from Qatar’s sovereign wealth fund.

The raid on Sainsbury’s stock, which has made Kretinsky Sainsbury’s second largest shareholder, has sparked debate among analysts and investors that its three major stakeholders could launch a “take-private” deal.

Takeover speculation first surfaced in January, as Sainsbury’s rival Asda was nearing the end of a £6.8 billion private takeover deal by the Issa brothers.

It’s stocks hit a 12-month high in January as many saw Asda’s private acquisition as a potential new trend in retail, citing Sainsbury’s as low hanging fruit for possible investments.

A spokesman for Kretinsky’s told The Telegraph: “This reaffirms Vesa’s long-term interest in acquiring strategic minority participations in publicly listed companies across the wider food retail distribution segment, where we continue to perceive Sainsbury’s as an attractive investment opportunity.

“We are very pleased to be able to be associated with the strong and reputable brand of Sainsbury’s.”

Any takeover deal would have to be approved by Sainsbury’s founding family, and Qatar’s sovereign wealth fund, which now owns around 15 per cent.

However, the success of the Issa brothers’ Asda takeover may have opened the door for similar moves and paths around approval by the UK’s competition and markets authority (CMA).

[sphere25] 14/4/2021 11:53

Current price 239.5p and it spiked to 248p yesterday so some mild speculation about, but no follow through today or any irregular activity in the shares so clearly nothing concrete:


"Analysts at UBS said: "QIA's stake reduction from 22% to 15% seems to coincide with the simultaneous increase in Vesa stake of 3% to 10%. We see this as a small positive This removes a potential overhang of QIA stake as that is absorbed by a willing buyer who could look to raise the stake further and as such we see it as a modest positive.

"There was a brief statement from Vesa back in September when they said they saw Sainsbury as 'an attractive investment opportunity for the long run' fitting in with their key area of interest in food retail. We await any further such statement from Vesa and will look for any clues as to their intentions at this time."

All imo
DYOR

[netcurtains] 14/4/2021 11:16

Sky reporting czech takeover bid might be coming...

Also earlier report

[spob] 14/4/2021 10:32

You can walk into an Argos store now and actually buy something

Somebody in Sainsbury's has woken up

Amazing

[loganair] 14/4/2021 08:15

Tesco sees sales rise by £3bn and online presence double - “We have doubled the size of our online business and through Clubcard, we’re building a digital customer platform."

“Our decision to protect and hold the dividend flat for this financial year demonstrates our commitment to shareholders.

“We believe we can create significant further value for them and every stakeholder in our business by continuing to focus on value, loyalty and convenience for customers, underpinned by strong capital discipline.”

[chiefbrody] 14/4/2021 07:07

Take the company private. End shareholder misery. Make a success of it and show how those long suffering shareholders have been shafted by useless management for decade after decade.

[chiefbrody] 14/4/2021 07:03

Czech sphinx Daniel Kretinsky's firm has increased its stake sparking speculation the grocer could be targeted in a deal to take it private.From the telegraph.

[leadersoffice] 13/4/2021 07:50

I do think one of these supermarkets needs to be swallowed up. Asda seem to be in the early stages of a major reorganisation that could allow them more share of the grocery market here in the UK. Sainsbury's seem to be flagging. Morrison's has a strong brand north of Watford. You'd think it would be the latter that would be swallowed up. Maybe a merger between Tesco & Sainsbury's in the future? to be continued...

[loganair] 07/4/2021 15:29

During the most recent lockdown, Aldi and Asda have led the way in attracting more new customers in-store and online than other leading supermarkets, according to new research from shopper insights specialist Shoppercentric.

When asked which grocery retailer they had used for the first time ever during the latest lockdown, 7% said Aldi, 6% said Asda and 5% said Tesco. Only 4% of those surveyed said Lidl or Sainsbury’s, whilst just 2% said Morrisons.

Whilst the figures for Tesco and Sainsbury’s may be understandably lower due to the sheer number of people who had previously visited one of their stores, the data shows Aldi being the most successful of the others in attracting shoppers looking for money-saving deals.

[loganair] 06/4/2021 13:34

Kantar's latest figures show:


Iceland's market share is back down from it's lock down highs to pre-covid levels.

Co-Op has fallen from it's lock down high of 7.2% market share to below pre-covid levels.

ASDA's market share is now above pre-covid levels while Sainsbury's is still lagging 0.5% below pre-covid levels.

Ocado is still 0.4% above pre-covid levels while Symbols and Independents are 0.7% below their lock down covid highs.

[the_man_with_the_pink_gun] 30/3/2021 09:58

MARKET CORRECTION IMMINENT

[loganair] 29/3/2021 16:00

Scottish Mortgage manager and leading tech investor James Anderson has joined the chorus of asset managers shunning the Deliveroo listing.

Anderson, whose portfolio has chunky stakes in other food delivery platforms, said he would not participate in the Deliveroo floatation because its model is heavily reliant on London.

Anderson’s scepticism follows the rejection of the IPO by a host of UK fund giants, over concerns about the firm’s working practices.

Specialist ESG fund house EdenTree became the latest UK fund manager to reject the impending floatation, describing Deliveroo as the ‘antithesis of a sustainable business model’.

The company today knocked back the top end of its valuation expectations, from a previous range of 390p to 460p to between 390p and 410p. That brought its maximum market cap down from a previous high of £8.9bn to £7.5bn.

[loganair] 26/3/2021 10:32

A group of UK fund giants have indicated they will not be taking a bite of Deliveroo’s £8.8bn IPO as concerns mount over the firm’s working practices.

A combination of lack of investor power and poor working conditions for its delivery riders has turned BMO Global, Aberdeen Standard, Aviva Investors, L&G, CCLA and M&G off the fast food delivery company.

The concerns came as a study from the Bureau of Investigative Journalism found Deliveroo’s delivery riders were receiving less than the minimum wage after analysing 3,000 invoices from more than 300 riders over the past year.

Shareholder lobby group Pirc described the findings as concerning. ‘Investors considering taking a position in Deliveroo should familiarise themselves with these matters and the risks and responsibilities involved along with all other relevant factors,’ head of stewardship Tom Powdrill said.

Ticking time bomb:

BMO director of global equities Phil Webster said that Deliveroo faces significant competitive pressures, drawing attention to potential regulatory changes which could impact the firm’s profitability path, making it a ‘ticking time bomb’ and ‘uninvestable’.

‘Deliveroo faces significant pressure from the market leader, Just Eat Takeaway, which is investing heavily to improve its restaurant coverage and delivery proposition, through an “employed rider” model.’

‘We also see headwinds to Deliveroo’s revenue growth as we exit lockdown and customers return to dining out in restaurants. These revenue risks are further compounded by the issues around workers’ rights and a potential regulatory change, which would hamper its path to profitability.

Sustainability:

Aberdeen Standard Investments UK equity head Andrew Millington also categorically said his firm would not be taking part in the IPO. Governance concerns also leave him questioning the sustainability of Deliveroo’s business model.

‘We will not be taking part in the Deliveroo IPO as we are concerned about the sustainability of the business model.'

While M&G recognises the disruptive impact Deliveroo has had on the food services market, it also intends to give the IPO a wide berth.

The fund firm’s head of corporate finance and stewardship, Rupert Krefting, told reporters. ‘Whilst we acknowledge the disruptive impact that Deliveroo has had on the food services market, we still see risks to the sustainability of its business model for long term investors,’ he said.

‘This is largely driven by the company’s reliance on gig-economy workers in the UK as informal employment contracts potentially fall short in offering the value, job security and benefits of full employment.’

The concerns of these influential investors casts a shadow over one of the biggest London floats for a home-grown tech company.

[loganair] 21/3/2021 11:41

On-line shopping is not Green as it leads to strongly individualised customer demands for broad product range with many variants and a constant out put of new products.

The average product life cycle in the 1970's was 7 years, by 2000 had shrunk to 3 years and today just 2 years.


The message being pushed on people is to consume more - that consumption is good and saving and mending is bad, low to non-existant interest rates to encourage people to borrow more money and therefore to spend more money on consumption and to continually buy the latest product.

Sainsbury's seems to be more and more about selling more stuff, more cheaply thereby continually reducing their margins which reduces their profits, instead of selling less stuff at increased margins to increase their profits.

Sainsbury's had their highest profits in the 1970's to 1990's when their margins were over 7%. 7% margins on £15bln turn over is more profit then 1.5% margin on £25bln turn over.

Therefore I would be far more happy for Sainsbury's to reduce their turn over if it means much higher margins rather then to go for market share by reducing margins to increase turn over thereby reducing their profits.

[chiefbrody] 20/3/2021 10:23

6 month chart looks very pretty. What will happen when (if) this passes 250p.

[poikka] 16/3/2021 18:09

Supermarkets selling a meal deal that when cooked results in underdone chicken?

Ain't gonna happen, so I wouldn't take any notice of 'MyLondon's link.

[loganair] 16/3/2021 17:29

'I compared Amazon's new meal deal to Morrisons and Sainsbury’s and one stood out' - John James - MyLondon