Predators stalk Sainsbury's: should you buy in?

New bid rumours are swirling around Sainsbury's daily, so should investors take profits or hold on to their shares? Find out what share tipster Charlie Gibson thinks you should do now.

With new bid rumours swirling around Sainsbury's (SBRY) almost daily, what should investors in the UK's third-largest supermarket chain do? Is it time to take profits, or should you sit tight and hope for more? Regular readers will know that the basis of this column is a financial model that I've developed to guide my own investment decisions. Its basic thesis is that companies' share prices should be looked at in terms of their variation from a dynamic, relative mean, rather than an absolute one. My model has generated encouraging results for a number of companies, including Tesco, so I thought that it might produce similarly useful results if applied to Sainsbury's.

Sainsbury's shares: anything but cheap

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Charlie Gibson

Charles has previously written for the MoneyWeek, giving readers his share tips regularly and covering other topics on the side such as stock markets and the economy. He has also written for The Business, Shares, Investors Chronicle and The Evening Standard, and Charles has presented on LBC and been a guest on BBC One and BBC World. Aside from his journalist background, Charles graduated as a chemist from the University of Oxford specialising in ligand gated ion channels.