Sainsbury (j) Share Discussion Threads

[dipa11] 22/7/2021 22:43

Today shorting increased to 9%And price are steady + 35% or more purchase @ closing Yesterday was my remark"This is on takeover target as shorting was hold for long time now it has increased to 8.5% and still price is on hold upper side This is my thought. What about your view?"

[rolo7] 22/7/2021 10:21

Iceland need money by end of month to meet payment terms of the takeover

[dipa11] 21/7/2021 18:12

This is on takeover target as shorting was hold for long time now it has increased to 8.5% and still price is on hold upper side This is my thought. What about your view?

[loganair] 21/7/2021 11:20

Sainsbury’s has unilaterally decided to close down its wholesale business and therefore stop supplying the SimplyFresh group with Sainsbury-labelled products.

SimplyFresh announced this morning that as a result of Sainsbury’s decision it no longer has an ongoing agreement with the supermarket as a supplier.

A Sainsbury’s spokesman said: “As part of our plan to put food back at the heart of Sainsbury’s, we are simplifying our business so we can focus on what matters most to our customers – lower prices, exciting new products and convenient ways to shop.

“To deliver our plan we must prioritise what we do. We have just started talking to our retail partners and colleagues about what this means for the future of wholesale and it will be a gradual process.

[quepassa] 19/7/2021 11:49

Yes indeed.

Sainsbury's are redeveloping their sites already. That's the big hidden value in the estate waiting to be exploited at a time of severe housing shortage.

You are probably talking about the major redevelopment in Hendon in North London which is a pretty built-up area.

It is likely that other city-edge and town-edge sites would command far shorter redevelopment time-lines.

But the Hendon site shows what is possible. A massive 1300 new homes and other mixed used.

This is a link to an article about it in the Retail Gazette:-

hXXps://www.retailgazette.co.uk/blog/2021/06/construction-begins-for-new-sainsburys-flagship-in-hendon/


That's a big attraction for USA private equity houses who are now actively chasing the sector.



ALL IMO. DYOR.
QP

[spob] 19/7/2021 11:19

Redeveloping sainsburys sites takes a very long time and is also very disruptive


They are doing one near me

it is a TEN YEAR project ! assuming no delays


the car park has been closed

and they have built a tiny 2 storey car park in the corner of the existing car park

I wouldn't take my car there during peak hours

because I know you would have no chance of finding a parking space

[tim 3] 18/7/2021 20:52

Interesting story about Morrison's opening a store and a concept that could go anywhere with no check outs or self scan basically you scan the app on the way in and it automatically charges to your card.Really has gone from offering customers a choice to them being forced to use them.In a few years things could look totally different more and more shops I go in have just one till open mainly for customer service.

[m_kerr] 18/7/2021 15:20

that's a very interesting point quepassa. i would have thought that would only be viable in areas of very high land prices, mainly in and around london. it's difficult to know whether the sites they own in london are freehold or not, overall it's 50% freehold, but who knows if they sold off the london sites.

[chiefbrody] 18/7/2021 14:19

Div reinvestment Friday/Tomorrow.Lovely looking 1 year chart. Can the run continue and turn the 3 year chart around...

[quepassa] 17/7/2021 17:09

What the private equity houses have spotted is the redevelopment potential of the sites.

Keep the cathedral like superstores as single storey and build another five stories of flats over them.

Just as nobody wanted warehouses a decade ago which have now become a highly sought-after real estate asset class, the same is happening with supermarkets.

John Lewis points the way and has already started redeveloping a number ofsites as a way of becoming a mainstream professional residential landlord to build further stable income streams against a volatile high-street income stream.

Current valuations are not yet up to speed with and factoring in the potential for mixed-used redeveloment of thousands upon thousands of super/hyper-markets.

But this is where the future incremental values lies

ALL IMO. DYOR.
QP

[m_kerr] 17/7/2021 14:50

a rudimentary analysis of the freehold estate (50% freehold), and a £524m rent bill, at a 5% yield, gives you a portfolio worth £10,500m. 5% is cautious, many sites in the south east would be worth perhaps 4-4.5%.

sale and leaseback is unattractive, as you can issue bonds at 3-3.5% nowadays, plus you don't lose control of the land, and don't have long liabilities at 20 years or so, with fixed uplifts. i did the calculation to show that a buyer could borrow most if not all of the purchase price secured against property.

problem is they expect to generate only about £500m free cash flow per annum, so effectively without that rental shield they wouldnt be making any money at all. it's not like morrisons who had 86% freehold ownership, plus manufacturing and distribution assets.

debt secured against freehold property nowadays is about 4%, plus supermarkets are highly saleable assets nowadays.

[imperial3] 09/7/2021 13:13

Thank you rolo7.

[rolo7] 09/7/2021 07:56

296p according to stockopedia, debt is coming down fast or will, more profitable in h1 as argos loss making stores have closed/closing...

[imperial3] 08/7/2021 13:19

Does anyone know what the net asset value per share is ?

[dipa11] 07/7/2021 16:56

Shorting reduced to 6.42 % today Let see how much time will take for further reduction Good luck long time holder

[imperial3] 07/7/2021 13:22

£3 beckoning.

[chiefbrody] 07/7/2021 13:21

Well if most decide to close we're heading up to the nose bleed heights of 300p.

[dipa11] 06/7/2021 19:01

Shorting reduced to 6.44 % today Let see how much time will take for further reduction Good luck long time holder

[quepassa] 06/7/2021 07:40

Today's TU


UPGRADE PROFITS + INCREASE SALES

[loganair] 06/7/2021 07:21

Sainsbury’s could be next, says Shore Capital:

Sainsbury’s is an underappreciated business and is too lowly rated, according to broker Shore Capital.

Analyst Clive Black reiterated his ‘buy’ recommendation on the supermarket, which closed up 2.3%, or 6.2p, at 278p on Monday on the back of positive quarterly results and the bidding war for Morrisons.

Black said the business was ‘underappreciated…by the London stock market’ and that food retailers will benefit from employees continuing to work from home. The analyst said the shares ‘appear too lowly rated to us’ and may also look a bargain to cash-rich private equity groups circling the UK market.

‘International capital, with access to masses of low-cost cash and debt is demonstrably viewing the UK as an attractive investment opportunity,’ he said.

‘If the UK stock market does not perceive such similar value, then other buckets of capital – family offices, high-net-worth individuals, private equity and sovereign wealth funds – can reasonably be expected to pick off more stocks and make very attractive financial returns.’

[quepassa] 05/7/2021 15:35

4,000 trades recorded. Against a smallish 7 million shares traded by 15.35hrs.

Retail is jumping on this one.

Is this potential three-way dog fight going to be the UK first GameStop??



ALL IMO. DYOR.
QP

[dipa11] 05/7/2021 15:07

What will be closing price and reduction of shorting any view

[quepassa] 05/7/2021 11:03

The rapid red downticks show how worried shorters are.

Canute syndrome.

[keyno] 05/7/2021 10:31

T/O - yes please. Please, please, please...............

[quepassa] 05/7/2021 09:41

Three groups now chasing Morrisons.

Only one will be the winner.


Cannot rule out the possibility that the two other contenders will subsequently focus attentions on other sector targets.

Either way, the contest for Morrisons has stimulated interest in an unloved sector where Private Equity sees the great potential for change, adding value and re-purposing of sites.


ALL IMO. DYOR.
QP