"market share is important but not as important as profit margins and these are heading south." ===================================================== Cautious7, you may be aware that MRW themselves slashed their annual profit margins to between a very low £325m to £375m in March. That was announced to the market. Only not meeting that lower figure would be disastrous. One factor likely to impact on SP no less is future of divi. Also in March, MRW announced a 5% divi increase for 2015, at same time as low profit estimates. How to finance divi? £1bn non-core, real-estate sell off & £1bn rationalization. Presumably, MRW's board had done due calculations allowing for divi before they announced it, mindful of heavy institutional investment in the company. If the divi is kept & increased as promised, large funds will stay & add. SP will recover very well. If they rebase divi, that may be an acceptable compromise. If however they slash the divi like TSCO did, having still met their low profit estimates, trust will be damaged & the large funds will reduce. IMO, they'll not slash it for that reason, whilst low profits margins might be priced in as market has already been warned. Regards.
RE: market share still strong
Hello, When I am looking at supermarkets, market share is important but not as important as profit margins and these are heading south. I may tke a punt at/about 160 for a quick, small profit but may use stop loss method of 150 to sell at a loss and 165/169 for a profit, but Morrisons appear to be in big trouble. ATB and DYOR
market share still strong
the market share is not far off from a year ago for all these supermarkets. Supermarket shares (12 weeks to 17 August) • Tesco 28.8% • Asda 17.2% • Sainsbury's 16.4% • Morrisons 11% With morrison's 2.4% gain in sales and extra income from online sale ...... must be the lows & screaming buy for all 3 british ones
be a bit of a bumpy ride tomorrow for Supermarkets - a major Tesco shareholder has sold off two thirds of its holding.
Thanks. My apology for misinterpreting one of your points. Your other comments taken on board. One final point that needs no reply: to clarify, I've no issues with any posters here. May's takeover rumour highlighted in the press (example below) & only natural that it was discussed here at the time. My mistake entirely for attaching too much weight to it. http://www.thisismoney.co.uk/money/markets/article-2629620/MARKET-REPORT-Morrisons-shares-rise-mounting-speculation-buyout-talks.html ATB! - Off out for the day.
Really is my last post on here at the present time. I didn't say I thought people posting that they had bought into a share were pompous p rats. I think the pompous p rats bit was about people posting long after the event what they had bought and sold on a regular basis and on alien bbs some of the time so we are actually in total agreement on that one. One of my other pet hates is people posting half-baked takeover rumours, pumping up a share with several posts saying they have bought then moving on without saying they've sold. My recollection of some of the posters on iii is very different to yours - and not therefore worth discussing further. You really need some more fellow mrw holders on here to chat with - not me. Enjoy the rest of your day. PS like the user name and quite appropriate for somebody who likes to do some short trading.
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