Not the most exciting share, but with safeway conversion now complete (and how much better the old safeway stores are now) the shares should start to come back. Already started a nice rise from a recent low. Costs for conversions will still hold the price back but when that is out of the way, should be be nice. 190p

On the corporate front, supermarket chain Morrisons reports interim figures on Thursday, which broker Jefferies thinks "are likely to bear the scars of weather challenges".

Nevertheless, "self-help and ROCE [return on capital employed] discipline remain powerful attractions (the latter likely to lead to even greater capex [capital expenditure] scrutiny)," the broker suggests.

"We anticipate self-help to have allowed for broadly unchanged underlying EBIT [earnings before interest and tax] margin (or a slight decline including the dilution from petrol sales). Crucially, we still forecast 8% H1 EPS [first half earnings per share] growth as buyback activity starts to reward shareholders," Jefferies added.

"We expect Morrisons to outline good progress in its M-local trials and the preparation of a wider non-food online roll-out. Performance in the new fresh format is also likely to be reassuring in more affluent catchments. Despite this, we expect Morrisons' focus on maintaining industry-leading ROCE to likely result in reducing capital intensity (at this stage we estimate a £1.05bn peak in 2012/13), as the group balances a challenged trading backdrop with new growth opportunities, extending vertical integration and a stepped-up Southern expansion," Jefferies said.

Interim Results

Steady progress in a challenging environment

Financial summary

· Turnover up 2.3% to £8.9bn (11/12: £8.7bn)
· Like-for-like sales (ex-VAT and fuel) down 0.9% (11/12: up 2.2%)
· Underlying profit (2) up 1% to £445m (11/12: £442m)
· Underlying earnings per share up 10% to 13.09p (11/12: 11.91p)
· Profit before tax £440m (11/12: £449m)
· Interim dividend up 10% to 3.49p (11/12: 3.17p)
· Net debt of £1,680m (11/12: £1,055m), after equity retirement of £628m
· Gearing of 32% (11/12: 20%)

Operating and strategic highlights

· Fresh Formats now in 45 stores: on track for over 100 stores this year
· M savers fastest growing own label value brand with sales up 40% (3)
· Catalina voucher at till system launched
· Good progress on expanding manufacturing capability: integration of Winsford fresh meat facility on track; fresh seafood site in Grimsby operational
· Online to launch in H2, with Morrisons Cellar wine range
· M local convenience format to launch in London supported by our new Convenience Distribution Centre
· Financial discipline maintained through rephasing of planned investment in new stores: £100m reduction in capital expenditure
· Awarded Grocer of the Year and Employer of the Year (4)

Like for like sales drop, not good.

but underlying profit up - which is good

Dalton Philips CEO. just been on R4, seemed pretty chipper.

markets seem to like the results so obviously better than expected and/or the prognostications ..... haven't held any for a while

.

I also have not held MRW for a while, results reasonable but replaced equity for debt it seems, which I suppose is great if you are upper management, not encouraged to buy yet,(currently 291.55p) but good luck all holders.
2517

It need to get to £3 to be back in the trading channel.

You might be surprised to hear it, but Wm Morrison Supermarkets is trading close to its 52-week low. The shares hit their lowest point of 261p in June before recovering, but they have slid back again and went as low as 267p on Tuesday before pulling up a little. We know that Tesco is still depressed from its poor Christmas season, but why is Morrison struggling?

It's hard to say, as the City is forecasting a rise in earnings per share for the full year to January 2013, with a near 4.5% dividend on the cards rising to 4.8% for the following year. If that doesn't make a forward price to earnings (P/E) ratio of 10 look cheap, I don't know what does.

also noticed dc and bought a few at 268p wait and see if theres a run up over the next month. also back in tesco and in profit.,.

Good luck Bb. :-))

While investor attention seems to be drawn to Tesco there are other opportunities in the UK supermarket sector.

In the last five years, Morrison's has increased its dividend from 4.0p per share to 10.7p per share. That's an average compound annual growth rate of 21.7%, while eps has increased an at average of 25.6% per annum.

Despite this, Morrison's shares trade on just 10.3 times 2012 earnings. With 5% growth forecast for 2013, this falls to just 9.9 times.

That's not expensive for a successful blue chip.

However, it would be foolhardy to dismiss investor worries in the sector. When even the market leader (Tesco) is struggling, it is natural to worry whether pain may be on the way for the rest. The most recent Kantar Worldpanel survey of the industry revealed Morrison's had lost market share.

Analysts expect dividend and eps growth from Morrison's for the next two years. The dividend is expected to rise faster.

stopped out of tesco with small profit dc, but still holding mrw.

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Its only me and you here, turn the lights off on the way out Bb. lol

lol.,.

Keep pressing the stockwatch button, to see if we are on go. Locks up and have to turn the computer off.

An entry point to MRW can't be too far away @ their current 267.3p, but the fact they have squandered oodles of money buying back shares at higher prices is annoying, especially for pi's. Management may earn bonuses for an improved eps but share buybacks are wasteful. Since 1st Oct 2012 they have bought back nearly 19 million shares, the majority above todays closing sp.
2517

I was in a tad too early but not hurting at mo.,.