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good results...well done Sainsbury
Sold at 235 (buy 213.89). Over 10% profit in a few days is more than decent enough. Certainly by my standards.
Other reasons probably immaterial, but I’m also mindful that today’s 229.60 open leaves a technical gap below from yesterday’s 222.50 close. That seems fillable later.
My sell no reflection on stock’s potential. I entered & exited promptly from a trader’s motive. Hope this stocks continues to see steady recovery for L/T holders. - GLA.
Nice trade for a week, Im out for now. Enough to pay next couple of months shopping at least. GLA
Well, that was a pleasant surprise.
So he should recognise asda was never going to happen and now depart with a £5m payoff lol.
I sold my holding yesterday for a quick profit and stuck the proceedings in FXPO after it fell 30%
I will wait and see what tomorrow brings
I would have thought they will now announce the need to invest more in the business
Some of the existing stores are looking tired and need of a freshening up ....the Asda money spent would have been useful in that capacity
I held for the results. I figure the worst news is already in the price and the slightest whiff of positive and it moves. If not then it is still a great entry area, discount to NTAV
Sainsbury’s was the only major supermarket to suffer a decline in sales in the 12 weeks to April 21, according to closely watched industry figures.
The company overtook Asda to reclaim its place as the UK’s second largest grocer by market share but suffered a 1.2pc drop in sales compared to the same period last year, data from Kantar showed.
https://www.telegraph.co.uk/business/2019/04/30/sainsburys-sales-slide-pressure-mounts-failed-asda-tie-up/
Can the now merger-less Sainsbury’s produce a confidence-rescuing set of full year results on Wednesday?
Considering the state of January’s Q3 results, Sainsbury’s really could have done with that deal going through. Across the quarter like-for-like sales tumbled 1.1%, way worse than the 0.3% decline forecast. This as a 0.4% increase in grocery sales was wiped out by a 2.3% slide in its difficult, Argos-led non-food household goods division.
Given the collapse of its Asda merger, Sainsbury’s will need to do a lot to get investors back on board on Wednesday. A better set of like-for-like sales in Q4 is required; ditto the delivery of the estimated 6.3% increase in underlying pre-tax profit to £626 million. An idea of how much the failed deal has cost – back in November the bill was already at £17 million – could help dictate the post-results reaction, as will an update on the status of Mike Coupe as CEO.
Read what Spreadex analysts have to say, or watch a 60 second preview, here: https://spreadex.com/?tid=390601
Love_You
cost cutting allows you to save cost in one area of the business and spend it in another..... thus improving the efficiency of money and assets employed in the business as a whole.
The loss of staff in the supermarket business is largely due to the customers demanding cheaper and cheaper food and having little regard for the other costs associated with providing it
The same can be said for taxis or Internet deliveries....people use Uber etc because they have little interest in paying for staff holidays, sick pay, pension, national insurance etc.... they just see the distance from A to B and want to pay just that ..nothing else
There is, overall more choice available to people than ever in the history of humanity and as such, people want to pay less for each part of their lives in order to enjoy and participate in that ever increasing choice
A such they moan about the cost of essentials like food, energy,water,transport, internet access etc ...desiring more of their money to be available for the consumer choices like holidays, sport, entertainment etc ....
"great idea. Pay the checkout people off at £8 an hour and give them £4 on dole.
Technology is taking us all down a dark social path. A few big winners and millions of losers. Shame."
Well this is a trial only and aimed at busy,small convenient sites , probably for the lunch time crowd.
In the 19th Century the message boys who ran around London taking messages and letters etc complained bitterly at the arrival of the Telephone
Technology has created more employment than supermarket checkouts ever has ... and for some people it is a trade off between having someone fill the shelves so you have something to buy or having someone to take the payment
Society needs more people working in health care and education rather than sitting on supermarket checkouts....ideally
Yes, but this sort of thinking won't work if Sainsbury's shareholders/bondholders/bank lenders are self-interested and rational. Being a rational person it seems reasonable to believe that there are many people in the UK who could do your job just as well as yourself, and that many other people can easily come up with a business strategy based on cutting costs/sacking employees - hence there is little value in such ideas because they are the easiest sorts of ideas to have. Also, there's particularly little value in such ideas, because being the easiest ideas to have they will be implemented by most other businesses also - hence everyone will look to cut costs if that becomes acceptable to the people who are meant to be protecting employee rights (but those people failed a while ago by allowing zero-hour contracts). Anyway, if most businesses focuses on cutting costs by reducing employees and reducing their benefits/remuneration then what will happen to the demand for these same businesses' products - demand (or at least the prices one can sell at) will fall - hence revenues and profits will fall. Hence as was stated many times in the past there is no way to generate improved living standards through cost cutting - it just can't work - everyone else will do the same and Sainsbury's revenues will fall - ergo everyone will have a lower standard of living except for the senior management and they should read about the French revolution and what happens when ordinary people can barely afford to live whilst some executive is taking forty times as much food/housing/petrol/diesel for themselves - well I guess most of you will have learned about the French revolution in school - you know what happens ...
great idea. Pay the checkout people off at £8 an hour and give them £4 on dole.
Technology is taking us all down a dark social path. A few big winners and millions of losers. Shame.
Sainsbury's launches the UK's first supermarket with no tills - where customers simply scan their items as they shop then pay on an app
Shop in Holborn Circus is the first till-free store to trial the technology in the UK
Supermarket giant had been looking into the digital system since August 2018
Paying with cash is still an option and there will be helpdesk to assist customers
https://www.dailymail.co.uk/sciencetech/article-6971863/Sainsburys-launches-UKs-1st-grocery-store-no-tills.html
Great to see this close up in the 220s should be a soild week ahead with any luck
thanks for your reply, kindly appreciated, going to try and pop into a few of their stores get a little feel for what they offer, i hear talk of them being a little tired, our local (a new one) is lovely but can't judge a chain by a store... locations and product definitely important. Location wise i always shop at my nearest big store, guess there will be a few like me that don't like driving far! that should help them maintain a good number of customers as long as they stay focussed on a great core offering
thanks
1. i noted a very low operating margin, are there plans to increase this
sure..always wanting that to be better ...pressure on low customer prices and increasing costs though ...always looking to take costs out of the business though...
2. " i wonder how much cash they burned through on the asda merger."
£17m in H1 ...see half year report
always a concern that if there is ever a price war that Sainsbury would get hit on their earnings more than others ...
...concern that JS earnings are stagnant and not getting much better year on year....although Argo costs of integration should decline ....concern they are being squeezed in the middle ground
IMO.... they need to stay focused....stick to what they do best...and make sure the Marketing is top notch ....get rid of some of the lines and make sure every key line is ALWAYS on the shelves by giving them more shelf space
Hi, i'm new to this board, i'm a bit confused when i look at this company, (SP) looks incredibly cheap, price to sales like 0.16, tesco 0.38, well covered dividend, good free cash flow, tons of cash on the balance sheet, successfully integrated? argos but why so cheap? i noted a very low operating margin, are there plans to increase this in line with the 3.4% achievied by tesco or sainsburys a few years back...... any comments welcome.... i wonder how much cash they burned through on the asda merger.... i think this could be a great share if a few things came to pass, mainly margin improvement and making their stores a place people enjoy shopping at.
thanks
D.
Fosters,
Thanks. It'd be a cold day in hell before I paid the slightest mind to any broker, be they bearish like this outfit or more bullish. My target will be reviewed higher up. Food sector has plenty of growth ahead & SBRY will remain a top player. - Cheers.
afternoon all. Good to see it in the 220s. Nice gap up to fill and we have a bullish engulfing candle.
There is a lot of rubbish talked about quality. The taste the difference range is up with the best. The mid range is still a very good choice and compares well for everyday choice. I admit I have not tried the basic range. Everybody has their own ideas about the best supermarket for food quality or price and it does pay to shop around certain products. I was suprised that Tesco whose reputation had just gone through a murky and dubious past were allowed to take over Bookers considering they already had the largest market share. Sainsburys had to deal with some people who were on the commitee and had previously worked for Tesco. Nudge nudge say no more
HSBC CUTS J SAINSBURY PRICE TARGET TO 180 (210) PENCE - 'REDUCE'
If I was you I would sell em now, and get out whilst you can, the squeeze is on
The UK industry is going post-retail and it is hard to see Sainsbury's growing from here.
Aldi-Lidl are much cheaper and better managed, Morrisons has much better store design, Waitrose has better quality, and Tesco has much better choice. All the British supermarkets are fading and their best days are gone, losing to the Germans offline and the Americans online.
Sainsbury's will probably end up being sold off abroad on the cheap, possibly to a US or Middle Eastern private equity fund, and then they will break it up and sell it off in bits to the highest bidder.
The CMA body is bizarrely anti-Britain. Today's decision was / is a disaster for Sainsbury's and Asda. They are now both facing big decline and will likely be gone from British highstreets within a decade or two.
There is nothing to stop sainsbury's deciding to go on an expansion drive and increasing their market share by opening lots of new stores. This was all the rage in the supermarket sector 15 years ago. Surely it would be cheaper for Sainsburys to do a huge rights issue to fund this rather than give Walmart over £2bn and lose almost half the shares to achieve the same.
Why will they probably not do this...the real reason they wanted the deal with Asda was to grow market share by taking out a competitor.
I really think the business needs to calm down, focus on quality and the end product for the next 12 months and then reassess. Not sure why there is this sudden need for Sainsburys to do something dramatic to survive. The same could be said for Morrisons, Co-op food, even potentially Ocado, but nobody is saying that of them.
Buy 213.89 announced on ii. Real shares. Reasons: seems a total overreaction on news confirming no merger with ASDA. Sentiment again seems the main driver. As it was during the huge spike in April 2018 when news of said merger first broke. That also started a brief uptrend that saw SP reach 340+ by August. Also an overreaction.
When emotions calm down, SBRY will be higher again. This remains a fundamentally sound business in a still growing market. Target for a review on my buy: a modest 240+. Timeframe is another matter as markets can stay irrational for lengthy periods.
Might add if it drops much lower. - GLA.