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

Just had a punt here @286

..Questor share tip: Investors should invest well for less at Sainsbury

By Garry White | Telegraph – 2 hours 10 minutes ago


......
Supermarket J Sainsbury had a good Christmas, but that's not why the shares are a buy. They are a buy because they are an asset-backed income play.

J Sainsbury 302.1p -3.8p Questor says BUY

Questor changed its view on the supermarket group's shares in November (Stuttgart: A0Z24E - news) after they plunged by more than a quarter from the previous year. This fall means the investment case is now very different from before.

The majority view in the City on Sainsbury (LSE: SBRY.L - news) shares is a hold. Out of the 33 analysts covering the shares and monitored by Bloomberg, 17 have a neutral rating. A further nine say sell and seven say buy. Their average price target is 319.9p.

The investment case is no longer about whether the group will marginally outperform another supermarket group over any particular time period, or about how it calculates its like-for-like sales. Sainsbury is now an income play but it is also one which offers a good upside once a recovery starts to take place.

The shares are yielding a prospective 5.5pc in the year to March 2013. This is higher than traditional dividend plays such as GlaxoSmithKline (Other OTC: GLAXF.PK - news) , which is yielding 5.1pc in the year to December; Royal Dutch Shell (4.5pc) or even Imperial Tobacco (LSE: IMT.L - news) (4.9pc). In fact, the dividend is now almost as high as that seen with a water company such as United Utilities, which is yielding 5.6pc in the year to March 2013.

The payment also looks safe, barring any financial Armageddon. It is covered by consensus earnings 1.73 times in 2012 and 2013, so does not look as if it will come under pressure. The business remains defensive and extremely cash-generative.

This will provide a floor for the shares if consumers further rein in spending this year. Also, the company's valuation is backed by £10.9bn of property, compared with its £5.7bn capitalisation.

The fact that the supermarket had a solid Christmas is therefore another plus for the investment case. Yesterday, the group said like-for-like sales excluding fuel rose by 2.1pc in the 14 weeks to January 7. This is ahead of City expectations of a 1.8pc rise. Total (Other OTC: TTFNF.PK - news) sales for the third quarter were up 7pc (4.5pc excluding fuel).

There are some issues among analysts about VAT being added to like-for-like sales, as with the inclusion of store expansions in like-for-like sales. This is because the company has a significant store-expansion plan, which can allow it to move more into non-food items.

However, this will keep the top and bottom line growing, and is not really of concern to Questor. The valuation and the cash generation are more important. New ranges such as clothing designed by How To Look Good Naked presenter Gok Wan have proved a success. Consumers may be spending less on the weekly shop, but convenience stores are performing well, with growth at an impressive 25pc after 600,000 square feet of new space was added.

Since November, consensus forecasts for revenues and the dividend have edged higher, with pre-tax profits and earnings per share forecasts nudging lower.

First (OTC BB: FSTC.OB - news) tipped at 297.6p on November 10 last year, the shares are up 2pc, compared with a market up 2pc. They are a buy for income and for medium-term growth

just added 14251 at 285p when is ex div is it june

May.

thanks 16p for the year wish i had bought 30000.now if they go under 288p i wil .
but i am still buying RSA in a big way they are my top stock for 2012

T ---We have only recently received the int. divi of 4.5p
2517

yes thanks 2517 i got it just could not find ex final div date i have 47678.
i like divs rsa pays out 10% this year i love it thats my hol and car paid for .

In @ 291.9 on the spreads March contract.

I do shop at sains and you can enjoy the meat you can not eat tesco meat it is like old leather

100% agree, or the rotten bananas. :-))))))

SBRY & RSA type of share you won't lose much sleep over.
2517

div is now over 6%. and yes assets worth at least 60% more than current sp.
sleep easy and nice div return

questor has got it correct buy buy buy . and sleep

sorry, but i think questor has it wrong ..... the quality of goods in sbry is appalling - see my post on tsco

cynic you can not eat the food from tesco it is crap the meat is like old boots .
even the dog wont eat it.

We use SBRY but can't comment on their meat as we use our local butcher.
2517

I think sains is slowly chipping away at Tesco. Good advertising and good quality food
at a good price.

I would like to be a fly on the wall in the Tesco board room this week.

M/C 5.4bn the companys valuation is backed up by 10.9bn of property .

are these falling down to bad management . because justin king is not that bright
by all accounts