77ss wrote:When it comes to SBRY, rightly or wrongly, I would avoid (as with all supermarkets).
I note a substantial fall in share price over the past 15 years and I do not believe that its dividend record in any way compensates for this. Capital does matter - you never know when you might be a forced seller. It may, of course, come good, but I see no reason for any particular optimism other perhaps than the potential of the Argos asquisition. There is no compelling need to be exposed to this sector at all.
77ss,
Thanks for that, you make a very good point and challenge my reasons for in holding, so I've taken a look at the Annual Report from 2000 to see what might have happened.
Shares in issue are about the same 1,918 million vs 1,911 million (this has changed recently with the Argos acquisition)
Sales go from 17,414 million to 23,775 million (annual change of 2.1% compared with 2.8% inflation)
Net assets go from 4,791 million to 5,539 million (annual change 0.9%)
Average dividend over the period 13.5p
The markets view of the Company has been reflected in a share price ranging from about 220p to almost 600p (in 2007).
So my further conclusions are...
1. It's not been a great investment over the last 15 years. In fact I can see a chart back to 1986 and that tells the same story.
2. This is looking like a particularly depressed share price at the moment and this is what has attracted me into the company.
3. I can see how people would regard this has not been a share/sector to hold forever and hence perhaps not ticking all boxes for HYP shares as I understand it.
4. I'm sticking to the view that this is comparatively safe as an investment from this point with good asset backing.
4. I still think it is good value at the price. But I'm possibly less convinced than I was yesterday.