MRW LN

WM Morrison Supermarkets PLC

Consumer


Presented:11/01/2016
Price:£2.24
Cap:$0.00B
Current Price:£2.86
Cap:$10.79B

Presented

Date11/01/2016
Price£2.24
Market Cap$0.00B
Ent Value$0.00B
P/E Ratio23.18x
Book Value£1.66
Div Yield0.01%
Shares O/S0.00M
Ave Daily Vol14,480,825
Short IntN/A

Current

Price£2.86
Market Cap$10.79B
WM Morrison Supermarkets Plc operates supermarket chains. It focuses mainly on food and grocery items. The company through its subsidiaries engages in the manufacturer and distributor of fresh food products, fresh meat process, grocery retailer, and property development. It offers a range of goods that include both branded and own label products. WM Morrison Supermarkets was founded by William Morrison Murdock in 1899 and is headquartered in Bradford, the United Kingdom.

Public companies mentioned herein: WM Morrison Supermarkets Plc (MRW LN), Tesco (TSCO LN), Wal-Mart (WMT) and J. Sainsbury (SBRY LN).

Highlights

The presenter is short shares of UK grocer WM Morrison, believing the investment offers a compelling risk/ reward skew. The stock is up roughly 50% year to date on relatively strong comps since having installed new management, with comps going from minus 7% to plus 2% over that time period. The recent performance has fueled a turnaround story for a company that the presenter believes remains materially challenged. He believes the real reason Morrison has been gaining share is that ASDA (owned by Wal-Mart), the number two player in the UK grocery market and the company with the greatest overlap with Morrison’s store footprint, has comp’d down about 7.5% year to date. The presenter’s thesis is that the recent trend should soon begin to reverse as ASDA is forced to mount a competitive response. 

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Idea Discussion

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