gamesinvestor
01 May 2018
Re: Savings are great but they need to t... " we appear to live in interesting times in this previously moribund sector!"Ahh but Bill, is this as good as it gets for Mr Moribund who's in the money at the moment?Is this merger all pixx and wind perhaps?They can shut lots of stores, but what will that achieve?The Argos element is all well and good, but long term isn't it going to get blown off course by Amazon anayhow?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%Aldi and Lidl are still growing at double digit rates and are still eating Asda and Sainsbury's lunch so to speak -- doesn't this mean they have a bigger lunch to eat away at?Games -- This does look like a reasonable exit point doesn't it?
polly hound
01 May 2018
Re: SOLD AT £310.04 - WHAT A RELIEF Hi, I couldn't agree with you more! I rarely sell shares that pay a dividend, but sold most of mine today for the same reasons,p-
ESTABLISH THE FACTS
01 May 2018
SOLD AT £310.04 - WHAT A RELIEF I really don't like this deal one little bit! This sector has so much competition from Aldi and Lidl it is a relief to get out. Sainsbury's always had good property assets (an insurance just in case things went really bad), the dividend cover also being healthy.Good luck to the remainer's, let's see how this pans out over the long term.
sound money
30 Apr 2018
Re: Savings are great but they need to t... Bill,"I don't think, for a minute, that this ends here."How true. As far as this proposed merger is concerned, as of now we have just heard window dressing.10% price cuts, don't believe it. Asda and Sainsbury already have buying power. Two proposed head offices, that wont stick. No store closures, rubbish. The reason in part is because there is to much space in the sector. Redundancies you bet.Make no bones about it there will be asset stripping or enhancing depending on your point of view. Some on here are squeamish about such naked capitalism. Will be interesting to see how it is dressed up.This is defensive so let's see it for what it is. Success will be measured by hanging onto market share and positioning for the threat of Amazon.This will force change, others will have to respond. Confirmation that the death of the high street is exaggerated. It will just be different with niche players riding through it.M
videodawn
30 Apr 2018
Re: Priceless Freudian Slip Rule 1 of tv interviews.The camera is never off!!!!
DeusExMachina1
30 Apr 2018
Priceless Freudian Slip Sainsbury's chief executive Mike Coupe singing to himself whilst waiting to be interviewed on ITV. [link]
Bill1703
30 Apr 2018
Re: Savings are great but they need to t... "... you have said it yourself, you can't see... You could end up misreading this like you did with the Melrose/ GKN takeover with spurious arguments that don't add up... Try also to avoid musleading obscure figures in your arguments. As you know you have form."Spot on SM... merely an excuse for NB to post yet another SELL recommendation - if only he ever owned any stocks in the first place. Maybe he hasn't had one for a while (so to speak?)Only summary thoughts from me, owing to distractions elsewhere. But I agree with what seems a few others on here - Argos looks like the (hidden?) gem of any opportunity here, however many stores they have to divest (not many, I suspect).I've been saying for a while (as others will hopefully remember) that M&A is the inevitable end-game in UK grocery - and so it begins. I always thought a SBRY/MRW would be the most logical deal - and you can be sure they thought about it, most likely discussed it. Maybe the cultural and family legacies were still too strong to set aside?I don't think, for a minute, that this ends here... maybe Amazon going for MRW? MRW having a pop at the Co-op? The JL partners putting Waitrose on the block? Possibly the M&S angle, as per SM (though I think this less likely). Whatever and whichever... we appear to live in interesting times in this previously moribund sector!
FSamps
30 Apr 2018
Supply chain I've been saddled with Sainsbury's since the Homebase/Argos buyout, not great divis and wondering if the SP will ever recover. As well as the operational cost-savings of a combined group, there is maybe a great opportunity to short-cut the development of US and other supply chains with Walmart as a partner. It takes a long time to set up profitable purchasing deals and maybe Sainsbury's are looking to the post-Brexit trading landscape.
Eagerbeaver66
30 Apr 2018
Re: Casualties The easiest way of thinking about this complex merger, is by analagy with two good restaurants at different ends of the market joining forces under pressure from competition. - Not to simply amalgamate into one bigger restaurant, but rather to create a Food court where the two restaurants sharing their tables and both gain.... One restaurant could use most tables at lunchtime, reducing queues and keeping customers who wouldn't queue, which they might have lost to nearby restaurants. Similarly, the second restaurant uses most tables in the evening to accomodate its extra customers and gets a similar benefit.In this way the two good, but quite different, restaurants can join forces to fight off the others, by working together to get more market share from the restaurants nearby.
II Editor
30 Apr 2018
NEW ARTICLE: Sainsbury's rockets after shock Asda deal "Mike Coupe had big boots to fill when he took over from LSE:SBRY:Sainsbury's hero Justin King nearly four years ago, but the supermarket's chief grocer has already established a significant legacy and reputation for bold M&A.Less than two years ..."[link]
schwee
30 Apr 2018
Re: Sainsburys in Play? To answer you question mark: yes. The big boys will be running the numbers as we write and booking their flights to Doha to offer cash for the Qatari 22 per cent holding in SBRY.SBRY would be a big swallow for Marks, but they could JV with Carrefour, one of the other giants or PE. I imagine Archie is on the case.
axel27
30 Apr 2018
Re: Casualties Merger benefits:1. Walmark buying power if they remain large shareholder (20-40%) 2. Two brands - ASDA can compete with Aldi_Lid; unlikely to steal customers from Sains. Sains can maintain its premium pricing . 3. Argos into Asda - more customers. Perhaps expand into electricals?4. Cost reductions from synergies, especially home delivery?5. Walmark and others must worry about Amazon expansion into food, so I can see this as the supermarket online fight back?6. Opportunity to rejig the store numbers/places with the inevitable Competition concerns.Trans-formative change and hats of to both CEO's to get this positioned. Execution may be tricky, and agree Morrison probably will pick up some stores on the cheap?A, shocked and awed
sound money
30 Apr 2018
Sainsburys in Play? Will M &S let it happen. Always thought they would make a good fit.M
Meanbugger
30 Apr 2018
Casualties The Sainsbury-Asda merger looks a great deal but what are the catches and who will lose out? The re-investment into price is bound to impact on Tesco. Tesco already price matches against Asda and Sainsbury so cuts of 10% in grocery prices will also have to be reflected in price reductions of up to the same amount at Tesco. Suppliers will lose out - Unilever, P&G, Premier Foods down to individual farm suppliers as bigger discounts are sought. The head office staff at Asda will see their roles disappear. Not obvious but this is very bad news for the Waitrose of the North, Booths. Already struggling and up for sale, the prospect of Sainsbury cutting its prices by up to 10% could accelerate the sale process and cut the value of the business dramatically. Even M&S may see the growth of its Simply Food stores stalling if Sainsbury becomes noticeably cheaper. Morrisons are likely to benefit from picking up some of the stores that have to be sold to enable the merger to proceed but they too will feel the chill from lower prices especially at Asda. I also think if the CMA says a new entrant into the UK food retailing market is essential, Carrefour may be tempted to return to the UK if the package of stores is attractive enough. Many of the stores are similar to the Eroski supermarkets in Spain it bought a year ago. Even if Carrefour aren't interested there are other supermarket operators like Auchan who might regard picking up stores in the UK at a knock-down price as a once in a lifetime opportunity.The good news for Sainsbury shareholders is all the above won't bother the CMA too much as they will see it as promoting competition and benefiting the consumer.
turkey10
30 Apr 2018
A great Sainsbury Day! Some brilliant news and excellent results and all in one day. Markets have received the news very well, with Broker upgrades.
