Sainsbury (j) Share Discussion Threads

[loganair] 04/10/2022 15:16

If Aldi store opening plan comes to fruition it seems to me reasonable to say by 2025 will give them somewhere around 11.5% to 12% market share which is between 2.2% and 2.7% higher than it is today.

[loganair] 04/10/2022 14:56

After recently being confirmed as the UK’s fourth-largest supermarket, Aldi has revealed where it is still looking to open new stores.

In its recent annual trading update, the supermarket, which has over 970 stores, said it had plans in place to open 16 more in the UK before the end of the year as it works towards its target of 1,200 outlets by 2025.

The areas where Aldi is still looking to bring new stores include cities like Bath and Birmingham, as well as smaller towns such as Penzance and Maidenhead.

Aldi stated that it is searching for freehold town-centre or edge-of-centre sites suitable for property development. The site should be able to accommodate a 20,000 sq. ft. store, located near a main road.

Aldi is also investing in the development of new and expanded distribution centres, which includes new sites in Bedford and Leicestershire.

With Aldi making market share gains as the cost-of-living crisis worsens, Giles Hurley, the discounter’s Chief Executive for UK and Ireland, said: “Independent research shows our discount is as compelling as ever and that’s why more and more people are switching to Aldi. We will do whatever it takes to maintain our discount to the traditional full price supermarkets and keep grocery prices as low as possible for the millions of customers that shop with Aldi.”

Some of the areas Aldi is targeting for new stores:

South East – Caversham, Farnham, Maidenhead and Worthing
South West – Bath, Teignmouth and Penzance
West Midlands – Birmingham, Coventry and Warwick
East Midlands – Chesterfield, Leicester and Derby
East of England – Cheshunt, Brentwood and Rayleigh
North West – Warrington, West Didsbury and Formby
North East – Newcastle upon Tyne and Sunderland
Yorkshire – Harrogate, Otley and York
Scotland – Cathcart, Bonnyrigg and Ladysmill
Wales – Barry and Chepstow


Aldi is made for the current climate…(Like Lidl).

Those suppliers playing catch-up (or even start-up) with Aldi……now have a superb opportunity to tailor offerings by new Aldi location as a way into closer involvement.

[rolo7] 04/10/2022 12:32

Petrol and diesel prices fallen by much as 30p a litre?

[blackhorse23] 04/10/2022 12:02

Moved to CURY (LSE) , excellent value & another interim dividend is coming this month

[clive7878] 04/10/2022 08:46

I understand Aldi and Lidi dont do home delivery as it is currently a loss maker.
Sainsburys do I must admit look attractive to me at this level.

[iceagefarmer] 04/10/2022 06:44

with the price of fuel going up i wonder if more folk have been using home delivery? aldi and lidl dont have that option

[stewart64] 04/10/2022 06:35

I bought yesterday at the morning bottom and for the first time so I am well in theblue already. I have misgivings like everybody else because of the Aldi/Lidl factor. However, stats like Sainsburys don't come along very often, akin to the Housebuilders ( but at least Sainsburys will carry on selling stock, the housebuilding sector may not). We are looking at a price to book on the least flattering measure of 55%, a dividend of 7.5%, cash in the bank equalling long term debt ( the nature of the business means you have to have billions in current liabilities to suppliers etc.). Price to earnings of less than 7.

[clive7878] 03/10/2022 20:04

73.7% sells today.

[loganair] 03/10/2022 18:25

My understanding of the current stock market situation.

The markets had their 'Euphoric' Top, then the fall, followed by the 'Complacency' Rally which re-traced circa 60% of the fall from the Euphoric top.

Over the past few weeks was the 'Anxiety' fall from this circa 60% retracement, now the markets maybe entering the 'Denial' Rally which will then be followed by the dramatic 'Panic' sell off which will take the markets to near their bottom - this is when I believe Sainsbury's will fall to 150p.

There is then the small 'Anger' rally which is followed by the final fall when the stock market enters 'Depression' stage is when we may see Sainsbury's fall as low as 120p.


CFD's the most nerve racking of investing I ever did, stopped after just one year because of all the anxiety it was causing me - decided it was time to stop as at the time was also in profit from my CFD trading.

[clive7878] 03/10/2022 17:55

I expected a bigger rebound today, however TSCO, SBRY, VOD, DEC all quite solid today.
I have been into stock market for the last 30 years and use to do CFD's at one point, but not now though. With all the gloom and doom over interest rates and energy prices, the market could be flat for some time to come, especially if people cant see the light at the end of the tunnel. But timing is essential as we all know, although the stock market is not always logically.

[porsche1945] 03/10/2022 10:22

Guessing private equity wishing they had waited to buy Morrison’s bought near top of market deal would be 40pc less now. Plus Morrison’s a shxt company. Sainsbury’s look like collateral damage between tesco and the two Germans who are going to wipe out most of the middle market. Dividend will be cut, having said that dividends will be slashed across whole of ftse, looking like 2008 Armageddon for U.K., brexit fiasco anyone?

[loganair] 03/10/2022 08:10

c7878 - As I've been posting for the past 18 months by thoughts have been 150p low for this cycle and maybe, just maybe as low as 120p.

The way Sainsbury's is set up and run was never built to price match with the two German discounters, in the same way the legacy branded airlines, BA, Air France, SAS or Iberia are when it comes to the likes of Ryanair or Wizzair.

As I've also been posting for the past 5 years my thoughts are the two German discounters will top out with a combined market share of circa 22%, that's a further 5.5% to go.

[clive7878] 02/10/2022 22:11

Sainsburys try to compete with Tescos and
Asda try to compete with Aldi
Take a box of 72 Weetabix - Sainsburys and Tescos £7.00
Asda and Lidi just £5.75
And it is is exactly the same product - not a store brand
This is why people may change some of their shopping habits.
I personally use all 4 supermarkets

I personally to - do think that Sainsbury's share price having come down from 300p to 174p is now quite good value and now yielding 7%

Surely it should now be flattening out ???
Surely the profits are not going to take a massive fall ???
__________________________________________________________

FROM SIMPLY WALL

Trading at 56.3% below our estimate of its fair value

Became profitable this year

Trading at good value vs. peer average Price-To-Earnings ratio

Trading at good value vs. industry average Price-To-Earnings ratio

Trading below our calculated fair Price-To-Earnings ratio

RISK ANALYSIS
Earnings are forecast to decline by an average of 13.7% per year for the next 3 years

Dividend of 7.6% is not well covered

WHAT DO WE THINK CHAPS !!!

[dipa11] 01/10/2022 19:57

Https://www.marketbeat.com/stocks/LON/SBRY/price-target/

[dipa11] 01/10/2022 19:45

Https://www.about.sainsburys.co.uk/investors/shareholder-information/dividendsPast dividend history @ this price is best stock to hold. Plus 4% Shorting will be closing very soon and takeover bidding on the card. All the ways is winning Good night and good luck

[iceagefarmer] 01/10/2022 17:38

Morrisons sold for £7bn to private equity giant after dramatic auction

[iceagefarmer] 01/10/2022 17:25

£4bn market cap is cheap..look what morrisons went for

[clive7878] 01/10/2022 15:28

Has Sainsburys share price now bottomed out is the £64 question?. The yield is obviously very appealing. But then Vodafone is also in the same situation with a 8% yield. Is it a buying time, when will the share price stop falling ???

325p bid price, almost double what it is now, is almost dreaming.

[iceagefarmer] 01/10/2022 13:07

never been a better time for a sainsburys takeover... 325p would be nice

[iceagefarmer] 01/10/2022 13:05

bought some friday 175p

[loganair] 30/9/2022 16:46

p007 - Private equity look to buy companies that have lots of assets they can strip and sell. Out of the big 6 supermarket chains Sainsbury's has by far the least number of freeholds.

[peeks007] 30/9/2022 15:17

Private equity usually look to buy decent companies on the cheap and this one is certainly cheap. Just from 10 to 12 years of earnings they'd probably have recovered what they paid for it. Maybe they could sell off the Argos brand too.

As for the better pick - Net asset value per share: Tesco 206p vs Sainsburys 360p. Current SBRY market cap is almost half the net assets on it's balance sheet. Not to mention they also have the Argos business. Applying a fair P/E of 12 to the current price gives EPS of 14.5p, which I think in the long term is lower than what it is capable of earning.

[debsdowner] 30/9/2022 14:15

Same to Marks market cap under £2 billion !

[iceagefarmer] 30/9/2022 14:05

plus at £4bn bloody takeover target if morrisons was

[iceagefarmer] 30/9/2022 14:03

yeah but easy for sainsburys to fiddle with the prices in this inflationary environment..dont tell me they are ethically minded afterall run by j boys...bet theyve made a fortune on fuel prices...thats why im buying