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Will hit 370 ..just buy hold ....far to cheap at this level
Surely the other bidders will consider Sainsbury’s?
Worth owning for the dividends.
Popped a few pennies in.
What with Morrisons just having been bid for.
There has been interest in the past.
Slow burner and can sit back and wait.
The ship. has set sail 300 first target
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.
coming up 14 to start
i’d hoped we get over 270 in the run up to ex divi.still a few days to go. we’ve had a good run compared to mrw and tsco however- up by 20% whereas they’ve both been flat
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.
Loss making. All these exceptional charges which are not exceptional at all but business as usual. And another £1 billion of these to come in future. What a shambles.
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
Should have been IAG
A tad weak at the moment wonder what waits install over the coming weekend..
Is not chicken feed...patience will be rewarded as Warren always says
He sees value and so do I and all good things come to those with patience....I see 440 at some stage ,his strategic investment just before results
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.
action time!
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.
Czech billionaire swoops on Sainsbury's
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.
GLA (genuine) LTH
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.
Very quiet here.