Member Info for marvin

You are missing the sale of Homebase the finance business in the background as well as the small size store fronts they want to convert to locals. Forget Argos as a business it will largely disappear becoming click and collect counters in other stores, they don't actually want this business the want the distribution backbone and the customer footfall in their own stores. In this respect it makes a lot of sense so long as they do not over pay for it.

Then they will have a share price that drops back below £1 when no offer materialises, I do hope they don't go gun-ho and pay too much for it.

well unless you several millions of shares I doubt it will make much difference these things are rarely decided by small shareholders. I also think your logic is wrong as I have indicated before they don't want Homebase and that may even be sold off to pay part or all of the purchase price. They want the small store fronts to expand the Locals they want to have a better click and collect operation and they want too add the financial side of what was GUS to the Sainsburys Bank operation. All of this makes sense at the right price, matters not what they are buying is called. Shaws was a different proposition it was in a different country and failed, like a lot of British firms do, because they tried to be British in America where it simply does not work in retail you need to adapt to local conditions and customs.

Small sizes store fronts and a logistics backbone largely for free by selling off Homebase and the stores they don't want. If it could be bought for the right price which is certainly below £1.20 a share.

What you have been seeing today is part of the process when a company admits to thinking about a takeover. Anyone with an interest over 1% has to declare it. It is Rule 8.3 of the takeover panel http://www.thetakeoverpanel.org.uk/wp-content/uploads/2010/03/Summary-of-provision-of-Rule-8.pdf

If the hype from the senior management is to be believed the figures are on the high side.

Again, they are committed to 2x dividend cover half of the profits go to dividends if the profits decrease the dividend decreases and likewise if it rises it will rise. If they reasonably expect profits to fall, which is not a big surprise when prices are suffering deflation and margins are under pressure from a whole load of places, then it is reasonable to assume that dividends will fall too. The dividend will be paid probably on the 8th January. I have seen some very ignorant reporting on this share today like "shares hit by dividend drop" anyone that did not know that the interim will be 4p should not be reporting on shares it has been known since the final dividend in 2014/5.

The interim dividend is set at 30% of the last final dividend so 4p this year it was 5p last year, the one to keep an eye on is what will the final dividend be this year which if there is a 30% cut it will be about 5.25p giving a year dividend of about 9.25p and next years interim of around 2.7p Sainsburys is committed to 2x dividend cover meaning half of their profits will go to dividends.

Dividends will be 30% of the final last year it is the final this year which may be under pressure if profits are low.

Would never get the go ahead with MMC M&S a more likely merger with Sainsburys and even this currently is unlikely.

According to some media it is the merger of two chains in Belgium that is sparking the interest here in the hope of similar mergers no doubt.

http://money.aol.co.uk/2015/05/27/sainburys-listed-as-cheapest-supermarket-for-first-time-in-2015/?ncid=aolshare_facebook

Somewhat misunderstands current supply chain for fresh, short and long life chill, where "just in time" delivery is used which is ordered up automatically via POS (Point of Sale) how would they land up with "loads of meat" too shift? The suppler would end up with loads of meat to shift because if what stock the stores have, and this will be tightly controlled because of freshness control data, is not selling more will not be ordered. re-ordering is a 3 day process POS today, delivery to warehouse next day delivery to store day after. If the product is not performing to forecasts then manual alterations can and probably will be made to the automatic ordering systems.

The shop is smaller, the queue's bigger giving the impression of it being busier. put the same number of customers you get in the smallest of main supermarket stores into one of their stores and you would not be able to move or get through the queue in an hour or more. If you are happy, good for you I shop on quality first price second (I am lucky I have a choice of 2 ASDAS, 3 Sainsburys, 1 Tesco, 1 Waitrose, 1 M&S (2 soon) and 2 Aldi's and a couple of coop's as well as poundland and B&M within a circle of my home so can easily choose quality then price and not spend a fortune in getting the price) both of these lose on quality everytime.

But the problem is, it is not a bargain it is cheap crap laden food that will in the end be bad for their health, when regulations catch up with them and the government starts regulating sugar/salts/additives then they will falter. It is not a bargain when compared to own brand, at best it is just cheaper in many cases no cheaper and in a few more expensive. The difference is quality, if you ignore the basics brands the main own brand stuff is far better in quality and not more expensive. But you believe the media hype if you like.

Firstly, if talking Lidl and Aldi, they are not discounters, they sell inferior products (very high in salts fats and artificial additives,I'm diabetic I have to read labels!) at very high prices unfortunately this is not portrayed in the media nor understood by the public, they will eventually. A discounter sells a comparable product at a lower price. Why do they only compare their prices to brands? Because they compete very badly against supermarket own branded goods. The quality does not match that of own brand either, most, to my taste and dietary requirements is inedible. I think the Sainsburys strategy is about right as this set of results show, good mix of convenience and bigger stores joint ventures to diversify the portfolio. The big 4 have to compete where these con artists can't compete, online, delivery, quality and values. I happen to think this is where Sainsburys is the big winner and is much better placed than any of the supermarkets especially on quality and values. Some very astute sponsorships like the para-Olympics and the all round perception that ASDA's food is for fat people and Tesco is the big demon. Now a reminder when reading anything I write about Sainsburys..... I work for them... only in a small lowly roll but I do work for the company and have to be careful, in some cases, what I say. In part because part of my job is overview of the volumes going through the food side of the business.

Divi came out just where I have been predicting it all along around 13p (13.2 to be precise) a big drop (as expected) but hardly slashed are they, Tesco is paying no dividend now that is slashed.

13.2p for the whole year leaving 8.2p to be paid in July for shares registered by end of play on the 15th.....largely as I have been predicting all year. A combination of a slight drop in profits and rising cover.

What do you call a hefty slash? They have already said their dividend policy is 50% of profit (2/1 cover) so what the final divi is depends on the final operating profits. The media seems fixed on 17% as the fall in operating profits, which if this is true, then is far better than I was expecting which was in the range of 25-35%, still not hefty and still a decent yield.

I have accounts with X-O and Halifax I find X-O too slow if I deposit funds to trade I need them immediately available not available within an hour as their website service level is set at. Some say they are available immediately this has never been my experience when testing it with small amounts of cash. I use X-O simply for housing shares I get in certificate form which I may want to sell sometime. Their website, although recently revamped with much more security to go through is still as un-user friendly as it was before, clunky and almost homespun. Cash out is an issue as you have to email and request it and as I have never used it for trading no idea if money from sales are available immediately or not but looking at their terms I doubt it. X-O does not offer dividend reinvestment but in general trading is cheap. Halifax, use it simply because it is simple, fast and convenient. Money deposited is available immediately, money from trades are available to reinvest immediately, cash out takes a few days but is quick to initialise. Cash from trading is available usually within 5 days to cash out with a further 3 on top for the transaction so is a wee bit slow given we live in a world of instant transactions these days. Halifax does offer dividend re-investment and also offers monthly savings trading at a reduced fee although of course you get no actual choice when the deal is struck, it always seems to be at the top of the range that day and, most infuriating for me, they give fractions of a share, you cannot opt for whole shares only. They also offer short windows of reduced trading fees of £3.95 usually between 12 noon and 14:00 on Tuesdays or Wednesdays once a month.