Just back from the GM. Nothing significant was announced since there is a progress report coming out next week.
The CE was clearly concerned at the recent fall in the share price but suggested that it reflects the overall market concern about food retailers in general. One person held strong views on the remuneration and number of the non exec directors. It was pointed out that they have not had a pay increase for many years, there had recently been the departure of a director, and one of the non exec has considerable financial experience and that his advice has been very useful and independent (as opposed from the self interested advice from the banks). So on the positive front the directors were clearly interested in share holders views.
I asked how useful the recent falls in the price of fuel was to the company. There has been significant recent falls in commodity costs and fuel, however the benefit of lower fuel costs will not be felt immediately as they have to cover themselves going forward. So nothing new there but my thoughts were that should PFD hold up their prices then the profit margin will rise... that of course is if they don't have to compete with others who pass on lower input costs! So overall I felt a bit more positive about the company.
For someone who has waited patiently to correctly predicy PF fall to sub 30p not 20p. To then go and buy Tesco without being patient, surprises me somewhat. Each to their own, but the days of Tesco being +£4 are well gone. A rally in Tesco SP and a long term target may now be max £3.
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