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Are Wm. Morrison Supermarkets plc And J Sainsbury plc At The Mercy Of Activist Shareholders?

VIDEO: One Fool puts Wm. Morrison Supermarkets plc (LON:MRW) and J Sainsbury plc (LON:SBRY) under the spotlight.

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Owain Bennallack
Owain is a magpie of the investing world -- and not because he gets into a flap. Almost any style of investing might suit him, depending on the bigger picture, and he's held all sorts of companies. Paraphrasing Keynes, he says: “When the market changes, I change my mind -- what do you do?” That said, Owain is usually a buyer of equities, where he prefers lightly geared, modestly rated companies, and is increasingly on the lookout for Buffett-style intangible quality. He aspires to buy-and-hold: his best investment ideas are worth much more than he sold them for. Then again, his worst investment went bust due to management fraud!
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In 2007, Sainsbury’s (LSE: SBRY) (NASDAQOTH: JSAIY.US) share price approached £6 on a bid from Qatar Holding. Qatar remains the largest shareholder with a 26% stake, and with the share price languishing at around £3.60, Qatar could well try again. Elsewhere, there are rumours that the CEO of Morrisons (LSE: MRW) (NASDAQOTH: MRWSY.US) will soon announce something along the lines of selling off property to a third-party and then leaseback the space as a tenant, but the idea has already attracted hedge funds keen to make sure he does. Here, Owain Bennallack explains why he thinks investors could “get paid” to wait for activists to successfully shake things up and unlock some capital gains, too…

https://youtu.be/OgCU725dUHI

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Owain owns shares in both Morrisons and Sainsbury's. The Motley Fool has recommended shares in Morrisons.

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