Here's a thought - find something ORIGINAL to say about Tesco, bored rigid reading 'I can't see this as an investment'- of course you DON'T, you are SHORTING it!! I may start trolling DOR with the same message, if they are still tradeable, that is ;)
You sir, raise a very interesting and valid question. My limited knowledge of this share (I only short or day trade it, can't see it as an investment IMO) would not the debt, pension defect to mention just two not be enough? Or perhaps they will soon be cheap enough to snap up. As you rightly ask. A very good question for consideration. I watch for others to offer some thoughts on this.
Supermarkets are unusual businesses, semi utility, all be it in a highly competitive market, which market isn't these days. I think there's a big + 10 billion takeover brewing. Why not Tesco at this price.
Toze,in early January 1975 one of the biggest shares in the market namely Burmah Castrol went bust and the market dived nearly 10%.Making the total fall since its peak of about 73%. So there was no good news around so what were Investors supposed to do?.Yet in the next 6 months the market put on just over 149%[ooer Opium].So you see if you base all your investment decisions on news,you will come unstuck. If you had looked at a Log Graph in early January 1975 you would have seen the chart movements that had happened since the previous peak,had suddenly hit a brick wall.Meaning that the rally in Jan 1975 appeared on the chart as being virtually horizontal !!!. Although there was no good news around,the chart told you that something was surely happening.Then of course when it was well up,along came some good news. A chart move up would not give you the news,but it will tell you that SOMETHING'S HAPPENING.If you wait for the news to actually appear to all and sundry,it will probably too late and you would have missed the bottom. I hope that this example answers your question.Basically you are putting too much attention on the news being the prime cause of market moves.
Ok I think reality is finally starting to sink in with Tesco !! Time to get out !! more competition, more problems and more bad news to come re expected Sales, Margins and Restructuring. ..... oh did I mention the DEBT and the growing PENSION DEFECIT
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