London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
You will only have one login account. Registering with multiple accounts is not allowed. Any user found to have more than one account on this site will have all, and any future accounts suspended permanently.
Your email and password must only be used by you. If a post is made under your account, it will be considered that it was posted by yourself.
Your account nickname must not be the same, or contain, listed company names or board members' names.
While debating and discussion is fine, we will not tolerate; rudeness, swearing, insulting posts, personal attacks, or posts which are invasive of another's privacy.
You will not;
discuss illegal or criminal activities.
post any confidential or price sensitive information or that is not public knowledge.
post misleading or false statements regarding the share price and performance. Such posts are deemed as market abuse, and may be reported to the appropriate authorities.
post any private communication, or part thereof, from any other person, including from a member of the board of directors of a listed company. Such posts cannot be verified as true and could be deemed to be misleading.
post any personal details (e.g. email address or phone number).
post live price or level 2 updates.
publish content that is not your original work, or infringes the copyright or other rights of any third party.
post non-constructive, meaningless, one word (or short) non-sense posts.
post links to, or otherwise publish any content containing any form of advertising, promotion for goods and services, spam, or other unsolicited communication.
post any affiliate or referral links, or post anything asking for a referral.
post or otherwise publish any content unrelated to the board or the board's topic.
re-post premium share chat posts on regular share chat.
restrict or inhibit any other user from using the boards.
impersonate any person or entity, including any of our employees or representatives.
post or transmit any content that contains software viruses, files or code designed to interrupt, destroy or limit the functionality of this website or any computer software or equipment.
If you are going to post non-English, please also post an English translation of your post.
If you are going to post non-English, please also post an English translation of your post.
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium and Verified Members
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I don’t get why we would have a huge bidding war for MRW without people also bidding for SBRY? If a number of PE companies all suddenly want MRW as it is undervalued why not SBRY? All supermarkets are hugely undervalued when you compare their PE ratios with other stocks. If MRW ends up going for around 280-300p, then Sainsbury’s should easily get to 350 minimum.
Also hopefully it will spur management into realising shareholder value before others do it for them. As I have said for a while, SBRY should sell off or IPO its home delivery business.
Interesting article in the ft today regarding supermarkets. Terry Smith doesn't seem to be a fan but others are more hopeful.
Terry Smith, one of the UK’s most successful fund managers, said the sector still had unattractive characteristics, including margins so thin that “every bump in the road is potentially very painful”.
“They also make very low returns on capital, significantly below their cost of capital, which in the long run is disastrous,” he said, adding that many of the benefits of restructuring had flowed to customers in the form of lower prices.
“Over time they have started to resemble utilities funded by shareholders for the benefit of consumers,” Smith said. “To paraphrase the late great Sir Brian Pitman, sometimes some markets don’t produce any winners.”
Sainsbury's is hugely undervalued, dividend yield of almost 5% is amazing and don't see it hugely at risk.
However Sainsbury's could significantly increase shareholder wealth. One of the main drivers of profitability decreasing is sales moving to home delivery. I have big doubts about how profitable home delivery will ever be, but the market loves anything online. Simple solution is flog the home delivery business off. Everybody would be happy, Sainsburys core profitability would increase and shareholders would get shares in a valuable 'technology' company.
Sainsbury's reported a 0.2% rise in revenue for the financial year that ended March 6 to GBP29.04 billion, from GBP28.99 billion the year before, but swung to a pretax loss of GBP261 million from the prior year's GBP255 million profit.
Underlying pretax profit of GBP356 million, down 39% on the year before, was hit by GBP485 million of direct Covid-19 costs, offsetting a strong sales performance excluding fuel. Grocery sales were up 7.8%, general merchandise sales up 8.3%, and digital sales doubled. Fuel sales drop by 39%, however, and Financial Services sales by 24%.
Fuel sales were hurt by reduced demand during lockdown and the impact of lower oil prices on the petrol sales price.
The underlying profit figure was, however, ahead of market consensus at GBP338 million.
The grocer will pay a total dividend for the year of 10.6 pence, in line with the year before.
"This year's financial results have been heavily influenced by the pandemic. Food and Argos sales are significantly higher, but the cost of keeping colleagues and customers safe during the pandemic has been high," said Chief Executive Simon Roberts.
"We have a bold three-year plan to put food back at the heart of Sainsbury's and drive improved performance," said Roberts. "We are transforming the way we workn and I am encouraged by how all of our teams have responded and the early momentum and performance towards our plan."
Sainsbury's said it has carried good momentum into the new year, but noted it will come up against tough year-on-year comparatives as customer behaviour normalises. Sainsbury's expects underlying pretax profit in the year to March 2022 to exceed the GBP586 million reported in the 2020 financial year, and it is "comfortable" with consensus of around GBP620 million.
Couple of interesting things should come out tomorrow between their 50 million bank reserve for bad debts, more argos news and whether they have a buyer for the bank. They were quite optimistic about their efficiency of home delivery. Lets hope they deliver tomorrow. lo lol lol
The market clearly doesn’t agree with the DT article about a potential bid for Sainsbury’s. Honestly this management needs to come up with a strategy of how to deliver shareholder value and fast. Sainsbury’s valuation is crazy compared with the wider market. Do something radical like split off home delivery. Makes no sense in logic, but in a stock market where anything ‘online’ has a p/e of at least 50-100 without questions, it is a no brainer.
I wish management would try to realise the value for shareholders without it needing to be done by PE. Can be sure that PE will do sale and leaseback on all properties, spin off the home deliver arm, load up with debt, pay itself huge dividends and then somehow float the company at a huge price in a few years. Management needs to make it clear how they will deliver value for shareholders, starting with separating the home delivery arm.
There are certain patterns that make me think we are not far off from another bid...in the not to distant future...way way under value..and those in the know have been running the slide rule over good old Sbry again
We use Sainsbury's every week and find the home delivery service very prompt and reliable. I would put them in my TOP 3 with M&S and Waitrose based on their product range. The TU clothing range is good value for money but needs to be expanded in my opinion. The Argos addition will only but add more strength as the company takes it's place in the market post pandemic.
Here’s a comment: management need to take a serious look at the structure of the company to maximise shareholder value. Particularly:
- considering splitting off their home deliver businesses - maximisation of the value of the land Sainsbury’s holds - current opportunities to move stores to more favourable locations and at lower rents with number of retail stores closing - I think post COVID there will be a big opportunity to increase clothing business, as many high street businesses have gone. Sainsbury’s already have a good clothing line but potentially should look to go a little more up market too. I think big opportunity in this space.
RE: Shorts - help on understanding plesae5 Feb '21
Gambling , yes...but Mr A never gave consent for the Broker to sell his shares to the hedge fund.
That is what is wrong with the system... once you buy the shares thru your broker , the broker holds your share in a nominee account and then scalps you ... you lose your voting rights and pay them a fee annually for them to hold YOUR shares. So apart from the immorality of loaning YOUR stock to a 3rd party who intends to damage your investment value, the broker pockets the commission for himself and never reveals to you what hes done to your shares in the collective pool.
It stinks and it's all to do with greed at your expense. The only measure is for you to immediately after you purchase a stock , is to enter a limit sell order for a say 10% or whatever , . This puts your broker on caution . What I do now is for those stocks I intend to hold long term, is to get the stock certificate.. it's a bit tedious but at least I sleep easier knowing the stock is in my name and if the broker goes bust, I havent lost my sponsors.