Sainsbury (J) Live Discussion

El_Kel 24 Aug 2018

CMA investigation underway for ASDA merger CMA phase 1 started yesterday, 23 Aug. “Britain’s competition watchdog has said it will not allow the proposed merger between Sainsbury’s and Asda to go ahead if it will leave shoppers worse off.” Sky News CMA says it will block Sainsbury's-Asda merger if it leaves shoppers worse off The Competition and Markets Authority will consider whether the merger could lead to less choice, higher prices or worse services.

Hounddog 27 Jul 2018

Future price Has anyone seen any speculation from the experts on the future share price of Sbry should this merger actually happen with Asda?

skiking37 04 Jul 2018

Goodbye Sainsbury's, and thanks for all the fish Bizarrely, I’ve to have sold out SBRY and added to my VOD holding in the attempt to put myself back into profit with VOD based on lowering the average price. All that has happened so far is SBRY has gone up in price - up over 3% just today - and VOD has tanked since I re-invested. I’m glad I don’t do this trading lark as my day job.

iancaswell 02 Jul 2018

Goodbye Sainsbury's, and thanks for all the fish After holding for quite a few years now, and enjoying the recent rise, I have sold my stake in Sainsburys to buy Vodaphone. I came out with a small profit which is always nice. Unfortunately my personal experience of our local Sainsbury’s probably colours my judgement, and my view of Argos in its new form haven’t helped me to bond with this share. stock control and rotation in my local store is shockingly bad, with full shelves (i.e. everything in stock rather than loads of each item), only at the weekends. The only reason for Argos to exist is to get the item you want from stock instantly. However, while the recent integration of Argos into Sainsbury’s stores saves on rent, it also reduces warehouse sizes so customers now have to wait for anything but the smallest of items. Why bother? Like me, in this scenario, potential customers will simply buy elsewhere. There are other reasons, but you get the jist of it here. I no longer believe in Sainsbury’s. Good luck to all those who still hold.

El_Kel 21 Jun 2018

Sainsbury and Asda heads appear woeful Roger Burnley and Mike “Maybe not in the money” Coupe were made to look like rabbits in headlights by the MPs’ committee yesterday. Some of these nuggets provide a worrying outlook for the proposed ‘merger’; Mr Parish, in return, described Mr Burnley’s analysis as “unbelievable…Mickey Mouse figures”. Mr Parish later accused the Asda boss of “misleading” the committee in a dispute over the amount of the grocery market that would be controlled by the merged group, and also referred to him as “bizarre” and “not truthful”. But Mr Patrick, clearly annoyed, said: "No you won’t. That is unbelievable. If you are going to make anything like the 10% saving that you have promised then you will have to do joint buying. "Don’t come here and talk baloney. I can add up - I am not that stupid. "Tell us some truths. You might have two separate brands for five minutes, six months or even a year. But your proposal to the Government is just political correctness. “It is a cut-throat business and I know exactly whose throat you will cut.” Sky News Asda and Sainsbury's bosses accused of 'talking baloney' to MPs MPs believe suppliers will be squeezed by the £14bn merger between the two supermarket giants.

Barney_Scott 18 Jun 2018

Money Observer: Reasons to sell Sainsbury's shares (from the Interactive Investor news feed: Each of the big four supermarkets have struggled in recent years to meet the ongoing competitive threats from Waitrose’s quality offer, the home delivery of Ocado Group, the discounters, and now the potential threat of the ‘beast’ called Amazon.com Inc. There have been multiple responses to these threats, with each of them now having a strong local offering, while also delivering to your home. The changing nature of food retailing means that whilst commentators only really discussed the ‘big four’ some years ago, the discussion now, rightly includes Waitrose, Marks & Spencer Group, Ocado, Aldi and Lidl, the latter two with a combined market share of 12.7% - in excess of Morrison (Wm) Supermarkets at 10.5%. [link] Corporate activity has also driven change, such as with the Tesco acquisition of Booker, the Morrisons supply deal with McColl’s and the recently announced link-up between Sainsbury’s and Walmart-owned Asda. Having been a significant holder of shares in Sainsbury’s, it is this move that has grabbed my attention. A quick glance at the statement makes for a compelling reading, with at least £500 million of buying synergies, opportunities for all staff, 10% price cuts on regular items, an improved covenant for pensioners, technological tie-up with Walmart, double digit earnings accretion - the list goes on. It is the sheer fact that we are looking at the number two in the market buying the number three that is causing a potential competition issue. That would take Sainsbury’s & Asda to a number one market position with a market share of 31.4%, clearly giving the CMA (Competition and Markets Authority) an issue - ‘all qualified staff to the checkouts please.’ In theory, the issues to be determined are whether such a step would disadvantage the customer and stifle investment? The part of the statement referring to 10% price cuts on regularly purchased products, is clearly designed to address the first point as the comment, and I paraphrase, “Walmart… to share knowledge and technology developments,…” is aimed at the latter. There are however, clearly, other factors to be considered such as the position of the employees, (over 300,000 of them), the pension trustees, and the suppliers. The landscape has changed though somewhat in recent years with new players involved and so time will tell as to whether “Asbury, or Saisda” will succeed. Ultimately, I like the idea of three strong brands (including Argos) getting together as there will be massive buying benefits and rationalisation that may well work. But critically, the deal will take at least until the end of 2019 to clear, and will involve a large chunk of management time. Let’s also remember that winning in Food Retailing is not just about buying benefits, it is about clear market positioning and execution. The complexity of this deal may mean a lack of focus on the day job for senior management, and could benefit the competitors in the short term, as could any store disposals. It is for this reason that into the announcement I sold the entire position in Sainsbury’s and will watch from the side-lines for, perhaps, a better re-entry point, perhaps buy-one-get-one-free! - couldn’t help myself. Leigh Himsworth is a portfolio manager at Fidelity UK Opportunities Fund.

Callun 07 Jun 2018

Re: Share Price Sainsburys Record date is 8th June, hence ex divi date today for final divi of 7.1p.Yesterday's closing price was 213, so SPpresently down by the divi and a futher 3p, round figures.Similarly, VOD ex divi today, 8.95p divi. SP currently down about 7p, so a better performance so far than SBRY.Callun

skiking 07 Jun 2018

Re: Share Price ii and Google finance appear to be quoting from a different closing price which is the bit that was confusing me.I did think XD was tomorrow but that would explain the big fall today. Fantastic day to hold SBRY and VOD lol

Digital1 07 Jun 2018

Re: Share Price I believe is is ex div today

skiking 07 Jun 2018

Share Price At the Close last night Wed 6th June I believed the closing SP was around 313. This morning it is showing as 304 with less than 1% drop (according to Google). What have I missed?

Canny Mannie 04 May 2018

Fidelity reports Fund Managers enthusiastic... ...about the merger. This seems in contrast to some analysts (not you Bill .Specifically they mention Tony Yarrow of Wise Multi-Asset Income fund, Alex Odd of Odd Real Income fund and Leigh Himsworth of Fidelity's own UK Opportunities fund being in favour.All seem to think there is a good chance of getting the merger past the CMA.(from Citywire Newsletter 2 May 2018)GLTA

II Editor 02 May 2018

NEW ARTICLE: Record-breaking April is ammunition for equity bulls "Volatility returned to equity markets with a bang this year. After making a record high in January, the @GB:UKX:FTSE 100 had lost over 900 points before the end of March amid concerns around US trade tariffs, rising bond yields, the ..."[link]

Lupo di mare 02 May 2018

Re: Savings are great but they need to t... I didn't actually intend to post that BUY recommendation - internet is so slow out here in the wilds that the screen tends to leap about, resulting in you know what. No, not Timbuctoo - darkest Hampshire.

Lupo di mare 02 May 2018

Re: Savings are great but they need to t... Bill - "Getting margins up from 2% to 3% - maybe even (gasp!) 3.5% - would be a big deal indeed in terms of shareholder returns, and you don't have to look too hard at the huge (combined) cost base to work out how, and in how many ways, they might do it."And you don't have to look too far back to see that they did just that.

El Kel 02 May 2018

Re: Locations; Sainsbury vs Asda Oops, wrong link.[link]