Member Info for stockdale

Lots of rumour and speculation about the SBRY dividend. I am not aware of any actual decision yet. Other than as a comparison I am not sure of the relevancy of the Tesco dividend on this forum, especially as nothing has been decided on the SBRY dividend.

FTSE down below 6300 at one point this morning but SBRY appears to be stable at a low of 227p or so and currently around 230p. Have we really reached rock bottom with SBRY?

I do find it strange that the new CEO has done nothing to support the share price. Even saying the dividend is up for being reduced as well and stating that nothing further will be said until 12th November. This has resulted in SBRY being an easy target for hedge funds shorting the stock with impunity, resulting in a considerably lower share price and considerably reduced value of the company. Not good for confidence in Sainsbury as a business. If there was any fundamental problem with the company I could understand a reasonable reduction in the share price. But over 20% reduction in two weeks with hedge funds hammering it? And a 40% reduction since the start of the year? Just for a 2.8% reduction in profit? That can feed on itself to bring even more bad news. In fact all you read now about Sainsbury is what other bad news may be just ahead with many articles predicting severe cuts in the dividend and possible rights issues.

Good for Jessops. Not so sure how it will benefit Sainsbury's.

Is an increase of 0.08% that significant? Maybe it's just buying on the current very low price.

Currently down to 227p. Surely this has to be a buying opportunity. Sell your granny.

Even stranger that Tesco was a big cause of this share price fall and yet it is up nearly 5% today with SBRY still languishing at very low levels.

A good figure would be 15p. A bit more than the market thinks (12p), not too bad for long term investors and attractive for very recent investors. That should push the price back to a more reasonable level.

'At it's current SP'. True but the current SP is due to a collapse in the share price over the last two weeks only. The SP is at the wrong level for the NAV and everything else. It has just been forced down by the hedge funds. The sustainability of the dividend payment is based on the ability of the company to pay it. My understanding is that the current dividend can easily be covered. Of course the dividend may still be cut but the above factors should mean not by as much as the market may think. That way everyone is happy.

Tesco's up over 2%. Morrison's up 1.2%. Sainsbury's? Just up 0.5%. Severe loss of confidence in this company.

There have been plenty of articles of a possible dividend cut. It is extremely unlikely that the market has not priced this in. In fact the 20% loss in share price over the last two weeks would indicate a possible dividend cut is one of many things priced in. If anything any positive news should push the share price up from now on.

I agree. The problem with SBRY is that it has dropped well over 20% in just two weeks. That is just 10 working days with a blue chip stock which many would have invested in as one of the more sensible stocks to invest in. Many sensible investors have been severely burnt with a considerable loss of confidence in what is actually a very good business. It's about time Sainsbury senior management took some notice.

Not sure why you challenge me on what is merely an observation of the day's graph. It was sold down late morning. The reason? Sellers? Shorters? Fat finger? Who knows? I do know that shorters have been the reason recently and some on this forum think they will continue until the Spring. The after hours buy of a million shares is interesting. Maybe we will all be 'enlightened' next week.

Up to above 230p until late morning when the shorters attacked again forcing it down to below 225p again. However it immediately bounced back up to 228p and stayed close to that for the rest of the day. Maybe there is now resistance to the shorters which wasn't there before? In fact the close is showing over 229p, but that may be just technical with a large buy after hours. That may also be interesting in that the buyer could be looking to stabilize the share price. Possibly company buy back? Or the Qataris? Or some other large institution looking to push the price up?

An optimist! Lovely.

Buying back shares in large amounts at this share price would be a bargain for them and would push the share price back up. They would then have a considerable profit from the rise in share price. That is what Shell and other companies do. Interest rate rises are not imminent. A rise is not likely until the second quarter of next year at the earliest and then it would only be by 0.25%. In fact real interest rates are still falling. I have just received notification from my bank that savings rates are falling again from 1st October. Interest rates have been at an all time low for years now. It is about time they reverted to normal.

Well done. That should be an excellent price. However many thought that it was a good price at 270p or 260p or 250p ........

On 19th September the sp was 285p. It has just closed at below 225p. That is a 21% fall in just 9 working days. Not sure how some on this forum can justify that as being normal in an environment of a 2.8% fall in revenue. Can't see how it can be good for the company as well. Furthermore the sp is quite likely to fall even further as there is no concern expressed by the company. Other companies often have share buy backs which ensure the share price is kept at a reasonable level. At the current level Sainsbury could substantially increase their profit by buying back their shares at this low price. Or is the share price just going to sink into oblivion?

Why do you think I am trading? Lots of assumptions in your posts.

Having a bad morning eh Seifert?