This thread may not get a comment, but here is a sleeper up to now.

Somerfield gets new CEO as profits jump
By Sonya Dowsett

LONDON (Reuters) - Somerfield (LSE: SOF.L - news) has announced a giant leap in full-year profits after store revamps and cost cuts paid off, and says sales have kept rising since the year-end.

The firm said on Wednesday Chief Executive John von Spreckelsen, who has overseen a turnaround programme at the grocer, would now concentrate on his role as chairman and Finance Director Steve Back would take on the CEO role as of September 1.

Somerfield reported pre-tax profits before exceptional items of 41.1 million pounds for the 52 weeks ended April 24, up from 25.8 million pounds last year. Analysts were expecting profits to come in a range of 38-45 million pounds.

Having rejected a takeover approach last summer, the grocer has pledged to speed up investment in its stores, cut costs and plough savings back into price cuts as it competes against supermarket giants like Tesco (LSE: TSCO.L - news - msgs) and Sainsbury .

Somerfield said sales continued to rise in the first nine weeks of the new financial year, with like-for-like sales at the Somerfield stores up 2.9 percent in that period and up 2.4 percent at Kwik Save stores, aimed at the budget-conscious shopper.

Last month Somerfield unveiled plans to convert or close its 51 Kwik Save stores in Scotland at the expense of 350 jobs.

Somerfield rejected a 120 pence-per-share indicative offer from entrepreneurs John Lovering and Bob Mackenzie last summer, saying it substantially undervalued the company.

David Cheyne will replace Steve Back as finance director.

a close call seawallwalker,,any thoughts on big food group.
just bought again last month,,2nd time round 1.06 any views,todays the last day of my booker card/they should be sending a nother.

Sorry for the wait Dave, yes it was, but like most things, if it don't move quick enough, I take what I can.

Before the market opened it had an ask 28p higher than I bought, and I thought I had a winner, trouble was it fell away to below yesterdays price on opening.

Big Food Group, you have bought in where I thing is the low point which is good.

Like wlw, no rapid gains here, but worth a wait on the punt.

On the grand scale of things food can not fail, unless management are inept, I don't think they are here.

I would need to do much more research, but if the price holds for a few hours at 1.03p I may go in long on this.

Not much help really, just stuff falling out of my head.

I am also looking closely at Rank Group

299p at the moment.

If it drops away a bit more I will be torn between the two.

seawall,i`ve just bought eidos 1.05/itv 1.15,eidos i will hold about 9 months,march/april time when christmas sales are sorted out,unless there`s good upside between now/then i will offload.

itv ,not so sure about i think long on this one,,unless there`s a good bounce in the share price forward.

as for rank i remember when the levels of 90 pence ,not to long ago , and i thought about a by then,,,,,,,,,,wish i had.goodluck mate dave.

Sorry hit the button twice!!

Somerfield Q1 group like-for-like sales up 1.1 pct
AFX


LONDON (AFX) - Somerfield PLC said its first quarter group like-for-like sales climbed 1.1 pct despite weak sales for July and August in the food retail sector.

Like-for-like sales at Somerfield rose 1.3 pct in the 16 weeks to Aug 14 helped by a store refit programme. Trading conditions in the last two months saw like-for-like sales decline 0.8 pct with sales of seasonal lines, such as ice cream, beers, carbonates and barbecue products, falling 'substantially' on the year-earlier period. However, in recent weeks, sales of these lines are back to normal, it said.

Like-for-like sales at Kwik Save grew 1.0 pct for the quarter although like-for-like sales in the last two months declined 1.0 pct.

Gross profit margins for Somerfield and Kwik Save remain stable, it said.

newsdesk@afxnews.com

jc

Support is 137p resoistance is 147.75p currently.

Yesr high in the 170's.

Short term buy imho.

Times reports that Somerfield's John Van Spreckleson had talks with Baugur last week about the posibility of merging BFP with Somerfield.

Obviously post buyout of BFP so take it as read for BFP.

John Van Spreckleson said to be not keen on the idea.

Price dropping back towards the 120p of last autumn.

If you all recall, if you are inerested, they had an offer at 120p last year which was turned down.

Latest broker recommendation was 140p, so I can not see why it is dropping like this!

Comments????

Personal opinion only SeaWallWalker but I used to hold SOF a while
back and sold out, it has been at this level and lower before.

Why the price drop?
To make it more attractive to a bid?
The Icelandic Crew wont pay more then they need to as proved by BFP.

Investor drop in confidence?
The Icelandic Crews bid for BFP has raised serious pension issues
are people worried the same may apply to SOF?

A reaction to the recent reporting from Tesco?
Are there worries that SOF will be squeezed too much by the bigger
players in the sector?
Just my 2 pennies worth! :>)

Appreciated

I just had another random thought in respect of SOF.

They turned down 120p last time, their profit margins are up and climbing albeit slowly. Kwikemart, er Kwick Save is now showing a profit.

I agree Baugur seem to be a load of chancers, but they would not suceed with SOF imho.

Shoot me down!

I would not be offended.

Wouldn't dream of it SWW as frankly I agree with you!
Plus I can't see The Icelandic Crew going for them anyway, they
simply don't own a big enough percentage, it's not the same as BFP.
Another thought that crossed my mind...
Is there a feeling among investors that if the BFP deal goes
ahead and many of the smaller outlets are sold out to Tesco et al
that this would (1) squeeze SOF and (2) make it more difficult
for them to off-load any 'spare stores' onto the other players in
the sector....

Hmmmmmmmmmmm............

Thinking.

<<:-(

Oh dear..that doesn't look like happy thoughts SWW and besides I
could be very wrong....

It's okay, still thinking.

By the way WLW looks sad today, any sadder and I willbe back in ;-))

WLW often looks sad these days SWW...much more of it and I will
have to sell it on grounds of making me depressed!! ;>)

Somerfield cum the ex Safeway stores is a MUCH more interesting animal and the price is beginning to indicate that. Rumors about the possible interest of either Lidl or Aldi are, probably, just rumors but a MUCH more interesting prospect could be Netto. Who, for instance, was seen lunching with who..just two days ago and why have they flown in ? All the attention seems to go to those Icelandic gentlemen but there are other predators out there and they have quite deep pockets for the right purchase. Plus, of course, Netto is frustrated about its lack of ability to expand in this country - which limits its buying power.Mind you. There is a joker in the pack and their domicile is Spain...but they do so want to cater to English tastes. Do they have a deep enough purse to accomplish their ambitions. Of course, it could just be Kwik Save thats of interest but, its all money aint it.

When I opened this thread, I thought from the title that I would be getting some good recipes. It's all talk about boring old stocks and shares.

:o(

Ha!

Recipes are still in the Oil & Gas Sector.

Did not bail there and not going to yet.

Gosh. Sorry about all the crass financial talk, hillary. Why not create a mess of Icelandic Cod with Spanish Chorizo (maybe throw in a kraut sauasage)and sit around and wait to see if WE ALL MAKE SOME DOSH !!!