Hobson: Sainsbury's Results Make Me Angry

THE WEEK: Morningstar columnist Rodney Hobson drags supermarket stock Sainsburys over the coals for failing to own up to bad performance in their recent results

Rodney Hobson 5 May, 2017 | 2:45PM

Regular readers will know that what really gets my goat is when companies try to bury bad news. They can’t avoid reality altogether because the London Stock Exchange quite rightly insists on inconvenient facts being published but investors can be deceived temporarily by what goes at the top of any announcement.

Those bullet points should give an accurate picture of the state of the company, otherwise investors may rush to buy shares at the market opening then repent at leisure when they read further down to discover the reality.

The latest culprit is supermarket group Sainsbury’s (SBRY), which managed no fewer than eight “highlights” without deigning to mention that profits were down and the dividend had been cut. It’s no consolation to be told that Sainsbury has gained market share if that is not feeding through to a better financial performance.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
HSBC Holdings PLC388.25 GBX-4.10
Royal Dutch Shell PLC B1,234.20 GBX-5.35
Sainsbury (J) PLC211.10 GBX-2.49

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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