Sainsbury Shares. Time to Invest?

from_suffolk

I don't often buy shares as I've had my fingers burnt too many times.

However, would now be a good time to invest in Sainsbury's with the share price falling.

Yes, I know the company has recently given a profits warning but would such a large company as this really go to the wall?

The shares have fallen from a 2004 high of £3.59 to £2.43 at close of buisness today perhaps they have further to fall.

In the future there could be a take over bid and it is this possibility that makes me feel perhaps its worth a punt.

TrickyTrotter_2

Who knows? But on the evidence of my eyes, no.

No doubt the new Chief Exec is throwing the kitchen sink into the bad figures, so that anything he does from here on in looks an improvement.

You have to ask yourself does it look a vibrant profitable place to shop in. The answer is no, if the ones I go into are anything to go by. I use to grumble about our old Sainsburys, but had high expectations when they built a new one, twice as big, where I live last autumn. It's awful, its dark, dingy and empty compared to Tesco. We revisit expectantly every month hoping for an improvement, but I see none. Same slippery slope as M&S as far as I can see.

As for a takeover, well non of the UK chains can buy it, just look at the fuss when Morrisons took over Safeway. Given that we have one of the most competitive food retail markets, what is in it for any overseas competitor wanting to take it over?

deemy2004

I don't often buy shares as I've had my fingers burnt too many times.

However, would now be a good time to invest in Sainsbury's with the share price falling.

Repeat after me

You BUY Strength and SELL weakness !

I would steer clear of Sainsburys, if you want to invest in a supermarket stock look at Tesco !

payless

Believe discussion of individual shares is not allowed on these boards

try advfn or iii

andyyorks

Hi Payless,

Why can't individual shares be discussed? ???

cheerfulcat

ADVFN and iii are sadly full of rampers; there is a lot of noise and it's difficult to sift the gold from the dross. Try the Motley Fool - here's the SBRY board -

http://boards.fool.co.uk/Messages.asp?bid=50722


HTH

Cheerfulcat

Hintza

Only if you think (know!!!) a bid is coming.

Personally I think they are in a mess. And the family looks to be getting ready to bail out.....

No premium for a distressed seller??

from_suffolk

Thanks all for the advice, seems there's not many takers for this one!

All the news at the momement looks gloomy, I think I'll hold.

Still may be worth watching for any take over bids though.

payless

Hi Payless,

Why can't individual shares be discussed?  ???

sorry for delay - been away, and thought a MOD would have answered it anyway
think its something Martin wants to avoid given the regulation around investments- sure someone will know the full full story

cheerfulcat

Motley Fool is also full of rampers and masses of apparently very intelligent people who are completely deluding themselves about their skill at investing.  

It also shows a great deal of survivorship bias (i.e. those who have been lucky post on TMF crowing about their skillful success, while those that have lost money never post again.)

If you have money that you can afford to lose then why not toss a coin to decide whether to invest in Sainsburys or not?  The odds of making money are exactly the same as if you spend lots of time doing any fundamentally flawed "research" on the internet.

If you make money you can join the deluded souls on Motley Fool and pretend you are a great investor.  If you lose you can keep quiet about it and put it down to an unlucky coin throw rather than your own lack of investment skill.

Hello, Pal,

What makes you so bitter? TMF most certainly is not full of rampers and anyone who attempts to ramp or deramp a share is given short shrift. There are plenty of posters who have admitted to losing money, btw; I think that you are allowing your prejudices to blind you.

As to whether you can make money by buying shares; of course you can, and many people are very successful. In fact I would argue that anyone with a decent grasp of investment basics can outperform most standard investment products, any day.

Cheerfulcat

deemy2004

Motley Fool is also full of rampers and masses of apparently very intelligent people who are completely deluding themselves about their skill at investing.  

Geez, louise, youve got a big bee in your bonnet about TMF

Its a discussion board, like others the contents varies from crap to good.

As for the other comments, well they say it all !

High yeild, High return On Equity, good growth track record, are always good companies to invest in ! There are many, many, many such companies from the oil giants, to little whipper snappers.

Unfortunately Sainsburies does not fit the bid, so only thing left is a bid possbility !

Then again there are a lot of speculative companies that rise on nothign and fall when it dawns on the market that they rose for no concrete reason, and then the bottom pickers step in thinking that its a good time to buy just cos they have fallen to 10% of their highs, and then onwards they go to 1% or less !

Same with old dieing companies that have passed their sell buy date so the prices are depressed, but instead of avoiding these companies again people jump in on the hope of highs being revisted.

Okay enuf, since shares discussions here is frowned upon,