This board normalised again? Personally, I think there has been so much speculation all over, that pretty much every possibility been factored in by now including divi cut which seems unlikely this year. I might beinterested in rsa again but Hester seems a one man disaster area, who moves seamlessly from one victim to another. However, is it REALLY true that Clarke`s payoff is TWENTY ONE million pounds. Seems ast onishing cheek even before taking a/c of him being retirement age. Hope the institutions vote it down. For ordinary folk failure does not get rewarded.
I was in RSA recently and that suffered a complete divi cut. It came after a series of events that weakened the company. A new man a the top came in (Steven Hester) and as forecast did a kitchin sink job.
It probably needed doing and is arguably a better position now for it. I sold out before the cut was announced as I believed there was such a high risk of it being cut as they desperately needed capital. They did a right issue and sold parts of the company so its not so straight forward to compare the SP but from memory it fell 20% ish and even now its about 10% down. I think they will restart divis albeit at a lower level in the future. The Yield was definitely affected adversely as its nil.
Another company that I hold that cut its divi was SREI. Again it was paying out far too much on a 9%+ yield and was not covered so I expected that it would be cut eventually. The divi was cut by a third and short term I think the price dropped but the company overall improved and has gone on from strength to strength. It only fell 5% to 10% on the "news" but as the fundamentals were improved by the decision it quickly recovered and as the SP grew the yield dropped. The capital appreciation more than covered the effective drop in yield.
As for tesco it depends which, if any, route they opt to take. There is no guarantee that the new man will cut the divi and its early doors for him being only days into the reporting period. They might take a steady as you go approach whilst he carries out a "review" and if a cut is required announce in time for the full next year. It also gives them some more time to sort some things out before trashing their good divi record.
If a cut does come it depends on what effect it has on the company as seen from the two examples above. Some can be positive others a disaster. I suspect any Tesco cut will be somewhere in-between but its the fundamentals that will drive this. So it depends on how much " somewhat below expectations" means. A cut should reduce the SP but how much gets priced in due to chatter such as this and I still think that they could cut capex. Just my musings though others have differing views
True but I was talking about the poster saying "24/7." At my local supermarket, I have noted a reduction in customers. This could be due to the fact that about a yr ago Icelands opened close by and then another supermarket. Market share is not only being diluted but margins for profits will be cut further ATB
Queeny, you think more than 1 will be taken over? Who do you think will do the taking over? 'messages' is also used on the east coast and i have an amusing memory of an IBM 4331, DOS/VSE and an operators message prompt, from a few decades ago, alas. I see the co-op has ditched their complete farm network. I think that leaves MRW as the new 'farmers friend', pretty big food manufacture as well.
More power to your elbow - hope your thick tights frustrate the attentions of the bare-cheeked Brigade near your Burn. Tell Randy, a w/e paper was suggesting Russan stocks as a Brave, Speculative, Contrarian punt. Written by Ivan somebody-or-other. Comment re: the 2nd Scottish debate at Fever Pitch, in our local pub - OK, I made that last bit up Somebody said Salmond's got a head like a Turnip, & his mate said that's better than looking like Mr Spock.
“One structural change in the market is the discounters, but it’s important to put into context that they only control about 8 per cent of the market. They are growing very quickly, but 92 per cent of grocery shopping happens outside that market. In a historical context, it’s also worth remembering that discounters had a bigger market share in 1995, with Kwik Save in the region of about 11 per cent.” BTW, if you think I'm going in for that 'toilet roll' routine again, you will be disappointed.
When tesco came to my part of Glasgow, I knew it would soon spell the end for my part-time job at templetons supermarket so I applied and the interviewer said he wouldn't give me the job but if I wanted to do a spot of baby sitting for him. I had applied to the co-op as well and the Welsh manager gave me a job on the check-outs but my talents and tact and knowledge of the local population were found to be invaluable as the boss of the bags where folk had to deposit their bags and trolleys before shopping in the store. A student from NM couldn't have handled that job! Maybe not the washing of dishes in the staff canteen either.
The rewards thing. Tesco still do it best. Trying to get a free time slot in granny's diary for Bella Italia in St. Andrews. She doesn't realise that her spend on a Glasgow Herald (in the clutches of the nats I think) and 2 bananas from her shell quarterly divi at the Tesco Express doesn't equal a clubcard voucher and it my judicial spending with her bonus points coupons that is making the difference - or maybe she does! Anyhow between 4 funerals and a wedding and a Christening and the carpet bowl outing, she had identified a suitable date that doesn't clash with our running of a business. Hope she snoozes while we are doing the brewery tour.
Op They are not open 24/7, they have to close from 4pm Sunday. I stand corrected if I am wrong. The supermarket price wars is a vicious circle like I said. Some will fold at this mo in time IMHO it may be Morrisons. Others will lose a big percentage of their SP for yrs to come. I was a holder like I alsmost was with Morrisons, I'd cut and run. I can see a bid coming for Morrisons once it touches 120p and bid price of may be 140p, but pure guess work only but price wars and rash of new stores for the competition have hurt all supermarkets. More and more people are shopping on line and Tesco does well in that area but I dont think they make a profit. ATB and as awlays DYOR
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