Sainbury issued a promising trading statement last week but why no mention of margins? It's not alone with all the other multiples reluctant to cover margins in their quarterly updates. Good see that Marks gives them a mention.
Commentary at www.investorschampion.com

Sharecast -

The share price of UK supermarket chain J Sainsbury was under pressure on Thursday after Shore Capital downgraded its rating from 'hold' to 'sell', saying investors should expect a "material contraction in profitability".

The broker said it sees "few attractions in holding Sainsbury's shares". It expects a 30% "reset" in earnings per share and is forecasting three years of declines in Sainsbury's profits and dividends.

Long 227.5 tight stop

added 225 and 225.2, same stop

nice gap up and out of the hole so stop loss to stop profit just below the bottom of gap.

Tough times in UK grocery market to take another 18 months to two years before improving: Sainsbury's boss



http://www.dailymail.co.uk/money/news/article-2882529/Tough-times-UK-grocery-market-18-months-two-years-improving-says-Sainsbury-s-boss.html

stop to +9

Sharecast -Sainsbury's was besieged by short-sellers last year as hedge-funds bet the grocer would be hit by price cuts in the industry, the Sunday Telegraph said. Sainsbury's shares suffered the most sustained shorting activity of any company in the FTSE 350, according to research firm Markit. Sainsbury's shares on loan reached a record 18.4% at the end of October.

Sainsbury's is accused of delaying payment to contractors that built and refitted its stores, the Sunday Times alleged. The supermarket chain wrote to contractors through the law firm Dentons, increasing to 82 days from 30 days the time contractors must wait for payment.

Also in the Telegraph

stop profit to +14

Trading statement 07 Jan 15 Sainsbury (J) PLC [SBRY]

FTSE 100 movers: Energy stocks hit by drop in crude, Lloyds boosted by upgrade

Fri, 02 January 2015


Sainsbury was trading lower as hedge funds forecast that the supermarket group would be damaged by the grocery industry's escalating price war. Lansdowne Partners, Odey Asset Management and Marshall Wace all blamed the growing popularity of discounters Aldi and Lidl, who would hit profitability by forcing aggressive price cuts for the group to remain competitive.

stop out +14

long or short or secret?

Trading Statement

Third Quarter Trading Statement for the 14 weeks to 3 January 2015

Good sales performance in a tough market

· Total Retail sales for third quarter down 0.4 per cent (excl fuel), down 2.5 per cent (inc fuel)

· Like-for-like Retail sales for third quarter down 1.7 per cent (excl fuel), down 3.9 per cent (inc fuel)

· Over 29.5 million customer transactions in the seven days before Christmas

· Over 1,000 product prices reduced since we announced our £150 million price investment

Sainsbury's leapfrogs Asda to become UK's second-largest supermakert as Aldi and Lidl go from strength to strength




http://www.dailymail.co.uk/money/news/article-2908159/Sainsbury-s-beats-Asda-2nd-biggest-supermarket.html

Sharecast -


Sainsbury's to cut 500 jobs in discounter price war

Tue, 13 January 2015


Sainsbury's will slash 500 jobs from store support centres in an effort to cut costs and compete with the discounters.
The supermarket's plan is to save £500m over the next three years, now that new chief executive Mike Coupe is at the helm.

According to the superstore, this plan will "streamline our central divisions and bring our supermarkets and convenience businesses together".

Losing 500 members of its 161,000 strong staff seems like it will be the firm's first move this year.

Coupe told staff in a recent letter: "I recognise that these changes will be difficult for our colleagues and I can assure you the decision to make them was not taken lightly."

"However, I'm certain that we will be in a stronger position to deliver our new strategy and better equipped to win in these times of change as a result."

This is the latest news in the ongoing supermarket price war that has seen the price of milk drop below bottled water in some cases.

shorted attempt to close yesterday gap at 269 at the open,nice stop just above 274.5. it fires up 10 min ago freaking nicely.

gone nicely, collapsed risk.

Both these & TSCO up 3.9% today ahead of SBRY reporting tomorrow.