regardless
25 Apr 2019
Buy at 213.89 Another winner on the cards Jack IMHO A great buy in price
jackdawsson
25 Apr 2019
Buy at 213.89 @cashpharma Thanks. Valid points. Agree it’s hard to put timeframes for meaningful recovery here with any great confidence & for obvious reasons. Markets are often irrational & those periods can drag on, be they bearish or bullish. IMHO, & why I bought today, we’ve seen a typical overreaction to news confirming the failed ASDA merger, as is par for the course when sentiment is a main driver. In context, SBRY has hit new 16-year lows today. That hardly seems justified. But ditto when SBRY’s SP spiked back in April 2018 when news of said merger first broke. That brief uptrend eventually saw highs of over 340 by August. Another overreaction. For all the heavy selling here since mid-February, SBRY remains a fundamentally sound business in a growing market. I’ve few concerns about a return to higher levels later. Of note, SBRY’s 5-year chart I linked before indicates a number of peaks & troughs. We see similar chart patterns for TSCO & MRW. I anticipate those patterns being replicated for SBRY in due course, but within more average price ranges, thus circa 240+ to 280 for those patient enough to ride out the current volatility. - GL.
cashpharma
25 Apr 2019
Buy at 213.89 I think the concern with Sainsbury is the deal making activity has lead to a loss of focus on the core business. Market share has fallen. Could just make it a share buying opportunity though. Suspect any recovery could take a while.
jackdawsson
25 Apr 2019
Buy at 213.89 Shares at 213.98. Reasons: good historic support around these levels & much of the recent heavy selling seems mostly sentiment-driven due to collapsed ASDA merger. That’s been confirmed today, but hardly unexpected for some time now. Also some significant price gaps above which seem fillable within decent timeline. For eg. SBRY closed 287.90 on 19th February. Opened 252 next day. All downhill since then for said reasons, but food remains an infinite market & SBRY a major player. Will review this buy at around 240+ levels. - GLA. Screen Shot 2019-04-25 at 09.05.01.png823x869 54 KB
stutes
24 Apr 2019
If bid for Asda is blocked - what next? If the Asda bid is blocked by the CMA I suggest Sainsbury’s should merge with M & S. M & S don’t operate fuel stations, the M & S customer profile may also avoid a CMA’s referral in the case of store proximity/local monopoly situations?
El_Kel
22 Mar 2019
Blocked Sainsbury’s are making some very quick, significant and positive moves to overcome the CMA’s negative comments from only a few days ago. "Sainsbury’s and Asda have said they would sell between 125 and 150 supermarkets and a number of convenience stores if allowed to merge. The supermarket giants would also sell some petrol stations, while Sainsbury’s has already said it would cap fuel profits for five years. Earlier this week, the supermarkets also vowed £1bn in price cuts. The UK’s competition watchdog said last month it could block the merger between Sainsbury’s and Walmart-owned Asda." [link]
El_Kel
19 Mar 2019
Blocked Gamesinvestor1: Then again with suitable appeals and adjustments maybe the merger can still happen? Games Looks like today has thrown up a suitable appeal/adjustment. Mike ‘notinthemoneyquiteyet’ Coupe is throwing everything at this merger. Bullish or desperate? Imo they have to go hard at this deal because the longer term survival does not look encouraging for Sainsbury without a significant change. I’m not sure how “…an independent body to check this promise in public…†would work, but it shows willing to work with the CMA and to jump through hoops. [link] "Sainsbury’s and Asda say their planned merger will save them £1.6bn and allow them to pass on £1bn in price cuts to savers. Sainsbury’s also says it will cap the amount of profit it makes on petrol. It says it will invite an independent body to check this promise in public. The supermarket giants are battling to convince the Competition and Markets Authority (CMA) to allow them to merge, a move that would see them leapfrog Tesco to become the UK’s biggest chain."
SaraRacano
22 Feb 2019
Blocked I wouldn’t be giving up your day job just yet!
San_Jaime
21 Feb 2019
Blocked Got a few this morning at 231.1 to see if there is a dead cat bounce. Meow ? SJ
Gamesinvestor1
20 Feb 2019
Blocked I guess they don’t look at the logistics at a local level, but the sheer number of stores that would be owned by one company. Hard to know how these guys come up with their blockages, but you can bet you axs that it’s not done on a uniform basis an that each one has some vested interest interference somewhere down the line. Sad part about it is that Sainsbury in the event of the merger not happening look still well overpriced. Games
MartinDrew
20 Feb 2019
Blocked Of course the CMA ruling might never happen because with a no-deal Brexit the chance of the ERG (who would be the winners in that decision) allowing a body like the CMA to continue to interfere with free markets is absolutely zero.
MartinDrew
20 Feb 2019
Blocked What confuses me is why Asda and Sainsbury having stores close together is considered anti competitive and yet Asda having two stores close together is OK. Asda have had two superstores in the CF11 postcode for several years., No Tesco (apart from an Express), no Sainsbury just a Morrisons and small Lidl, M&S etc. I agree that with no deal the shares will drift and Walmart will find someone else to buy Asda - maybe Amazon and if the CMA think that will be good for the consumers in the long term, and for the high street, they must be mad.
zanshin
20 Feb 2019
Blocked Agree. Without the deal SP will probably revert to the previous trading range of roughly 230-270. There will still be some trust that SBRY will salvage something from this, but at what price? The fall has stopped for now, but may dive further when more mulling time has passed. I’ve set a speculative limit buy just above long term support at 228
Gamesinvestor1
20 Feb 2019
Blocked And the stock hammered down 15% is that justified? Games
El_Kel
13 Dec 2018
CMA investigation underway for ASDA merger Sp dive yesterday due to concerns with CMA time scales; "Shares in Sainsbury’s closed more than 5% lower after the retailer said it was seeking to delay an investigation into its proposed merger with Asda. The Competition and Markets Authority (CMA) has denied its request for an 11-day extension but Sainsbury’s said it would appeal against the decision. The move raised fears the £15bn tie-up could be rejected when the regulator gives its final ruling next year. Sainsbury’s takeover of Asda would create Britain’s largest supermarket group, overtaking Tesco. In a joint statement on Wednesday, Sainsbury’s and Asda said the current timetable of the investigation did not give the retailers, or the CMA, enough time “given the unprecedented scale and complexity of the caseâ€. They said they had made repeated requests for extra time after being asked for additional information at short notice. “We are asking for an additional 11 working days to complete our responses… Without this, we will not be able to respond meaningfully to many of the key issues or have an effective oral hearing,†they said. [link]
