El Kel
02 May 2018
Locations; Sainsbury vs Asda The impression has been that Asda has the north and Sains the south.The reality is a huge overlap courtesy of this Bloomberg graphic.Talk of no store closures is clearly nonsense.[link]
GRAMPSAV
02 May 2018
Shorters truly burnt and about time to.
gamesinvestor
02 May 2018
Re: Savings are great but they need to t... "Getting margins up from 2% to 3% - maybe even (gasp!) 3.5% - would be a big deal indeed in terms of shareholder returns"It's possible but they will have to execute on it and it might not start for another 12-18 months -- what will happen to the SBRY share price when the market gets bored waiting - hard to say really -- in the meantime they are still losing a bit more market share.Games
gamesinvestor
02 May 2018
Re: Savings are great but they need to t... "If the Govt had half a brain (they haven't got even that between them!) a great bargaining chip, or else juicy tarrifs - that would help our lot!"Norman - you summed it up m8 -- if the government had half a brain they wouldn't allow Teresa May to be in the position she is in and for the Lords to completely compromise the UK's now wasted opportunity to get Brexit clean and free of interference.If the UK end up as a Vassal state our economy will hollow out badly longer term. This isn't about trade changing in the next few years, it's about trade strength and control over many decades.I doubt though that we will end up with a tit for tat trade barrier issue, as the EU has far too much to lose -- any attempt to block imports and the German car industry will have Merkel bound and gagged so tight she won't know what's hit her. They are very very worried about this right now and they are really scared of the way Barnier is leading the dance. 20% of all German car exports within the EU come to the UK -- that's massive. They are already seeing the middle ground car market hollowed out by Kia, Hyundai and the new Chinese offerings - all at lower cost, equal quality and 7 year or so warranties.We only have a few brains in government, sadly they are not calling the shots - YET!Games
Norman Barrington
01 May 2018
Re: Savings are great but they need to t... Bill and others in SBRY MRW MKS etc. I haven't heard it mentioned yet anywhere, but this Brexit thing. Isn't it just possible that it will throw a great spanner in the works of Lidl & Aldi. Stealing custom from British companies and exprting the profits to Germany.If the Govt had half a brain (they haven't got even that between them!) a great bargaining chip, or else juicy tarrifs - that would help our lot!
Bill1703
01 May 2018
Re: Savings are great but they need to t... "Ahh but Bill, is this as good as it gets for Mr Moribund who's in the money at the moment?... do we seriously believe this will ever reach a higher P/E than the 16.2 it stands at as I type (314/19.28)? with operating margins at 2%... This does look like a reasonable exit point doesn't it?"It's a fair and important question, Games... and the answer is - possibly! I long saw large-scale M&A as inevitable here and one key reason for holding on in there, so you could say it's a "travel and arrive" story - at least for SBRY, though maybe not MRW which must now be in the frame for something and/or somebody.You are right on the P/E, up to a point - these stocks will never be 'high P/E' plays (on a mature earnings basis). But as I've argued before, ad nauseam, I think the margin story has some way to run, at least potentially... anyone thinking that 2% is the end of the story simply doesn't get how operating leverage works in a low-margin, high fixed cost, huge recurring revenues business profile. Of course this merger is all about cost cutting, as someone else opined, one way or another... but that doesn't make it a bad deal, necessarily. 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.
EssentialInvestor
01 May 2018
We're in the Money!. Well I'm not, but many congratulations to those that are.Not often I'm left gobsmacked on hearing financial news!.(At least not in the post 2008/2009 world).Bill, well done, hat tip etc ).
The Crazy Russian
01 May 2018
Re: You couldnt write it this is public companies which is/are same as politicians...HONESTY is not included...self preservation and personal asset increase is the only objectiv
The Crazy Russian
01 May 2018
Re: Priceless Freudian Slip i continue to find it extraordinary how many supposedly 'intelligent' people get tripped up by such elementary stupid gaffs.........and this guy is in charge of a huge company..the mind is worried!!
pyueck
01 May 2018
Re: You couldnt write it I think most people will probably be endeared to him by this. Based on yesterdays share performance he is in the money. What's the harm in singing about it.When he started I will be honest I thought he looked a little odd and very boring. I still think he is a little odd, but he is certainly not boring. Is this a case of him going too far to shrug off his boring man image? I'm still not really sure what Argos purchase benefit was for Sainsburys (look at EPS impact since the deal, will take incredible performance to make up for dilution).With the Asda deal I think implementation will be tough, but long term the deal is a winner imho. Don't let anybody tell you the supermarket is dying, it's not, in 50 years people will still be buying their groceries.
Norman Barrington
01 May 2018
Re: You couldnt write it a strange quirk of fate, I actually went to school with Gerald Ratner. He was always a very honest boy!
gamesinvestor
01 May 2018
Re: You couldnt write it Could it be seen as a Gerald Ratner moment?Games -- or is that idea "a load of old tat"?
gamesinvestor
01 May 2018
Re: Savings are great but they need to t... "Confirmation that the death of the high street is exaggerated. "Is it the case with the supers though sound? As most of the volume outlets at Sainsbury and certainly Asda, are not on the high street.I agree this is one massive cost cutting exercise, dressed up to the public as "not a cost cutting exercise" to the small shareholder, the customer and the regulatory chaps while the deal gets approval.It's still below the price I sold out at yonks ago, but have some residual shares in a friends portfolio I might just get shot of at this juncture.Games
sound money
01 May 2018
Re: You couldnt write it The last person caught singing on Camera was shortly on the way out through the door. Wont happen here though.M
Norman Barrington
01 May 2018
You couldnt write it I know this was mentioned yeasterday. But it REALLY IS FUNNY::The boss of Sainsbury's, Mike Coupe, has apologised after being caught on camera singing "We're in the money".He was filmed singing the words to the show tune as he was waiting to be interviewed for ITV News.It was one of a round of dozens of interviews to explain details of the planned tie up with Asda, the company's biggest deal to date.Mr Coupe said: "It was an unfortunate choice of song" and apologised if he had offended anybody.The song is from the musical 42nd Street, which Mr Coupe said he had seen last year.He busked some lines from it: "We're in the money, the sky is sunny, let's lend it, spent it, send it rolling along", while sitting waiting to be interviewed. Mr Coupe, a keen guitarist who has played in front of thousands of Sainsbury's employees on occasion, issued a statement after the incident became public."This was an unguarded moment trying to compose myself before a TV interview," he said."It was an unfortunate choice of song, from the musical 42nd Street which I saw last year and I apologise if I have offended anyone."Right now everyone join in with the refrain!
