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Nothing has changed from yesterday other than the sp. Frustrating if you’re watching the movement on a daily basis. As I have posted before, those algo trades are there for a reason. They are not for the benefit of the pi’s unless your investing on the dips.
I was in PETS a couple of years ago and it has since doubled when the sp was allowed to move in a free uncontrolled way.
I am invested in the Company i slave for,Computacenter.
£26+ when i came in today,now at £25.80.These things happen.
Tesco will climb in time,have faith.As others have said,its a safe dividend.
Brutal drop today yet 28 million bought can we have some of your optimism please Chelwood.
It makes you wonder whether a lot of potential new investors were not aware of the consolidation, and therefore looking at the headline share price never realised that recently the price has been equivalent to pre consolidation prices in the 170's.
I suspect as the sp rises then the posters that are not invested or those that had other expectations will comment less and less.
On any significant rise you will get those posters who are wise after the event and post that they invested at a price below 210.
I agree with you 100%, having to wade through the posts of wailers before one reaches something of interest has become very tedious on this board.
Can we start a new week with some support and optimism.Post after post of what could or should will not make any difference.
Did anyone notice that this hasn’t been wholly paid off and still stands at £1 Billion!?
I wouldn’t say the director buys we’re mind blowing.
I guess we will have to wait now to Half year results to see where this is going .
Well I bought a little bit of Argo back (£500) and boy has that gone down the pan !
So Tesco is a great defense but not going to the moon or down the pan in a hurry.
We all pays our money & we take our chances but I have to agree with leas on the debt aspect. Vodafone's debt is around 62 billion euros with a net debt at almost 46 billion. BP's net is 35 billion dollars, Shells is 66 billion dollars, net around 48 billion. My point is none of these are going bust, all will be here in the years ahead & all pay good dividends. If we are looking at financials earnings per share is important with how the dividend is covered also being important for us that hold for the divi's. I hold all these companies & will continue to do so. Good luck Spindler & all posters with your future investments.
Just before I go..and I will. I know you know your stuff and there is some case in your argument. Debt is not wholly bad for a business but in this case i argue it is and wasn;t necessary. To be honest there are some good posters but I noted especially up to the BS SD that this BB has a lot of investors who actually know very little about investing, actually virtually zero. The amount of questions on such basic stuff continually how do i qualify for the dividend etc. And to be fair to them most couldnt get their heads around the consolidation which as it used totally deceptive language re the special dividend is entirely understandable.
I'm not sure if it was you but one poster said months ago that many investors would consider the consolidation as tantamount to theft because they wouldn;t understand one hand gifeth and one hand taketh away. And to be fair even the most inexperienced investor has a point on that.
Anyway toodle pip and by the by no i am not a fan of debt laden companies with no revenue(but i guess you meant profit). The main apple of my eye is debt free but that wasn't part of my decision. The Tui board is an interesting one in denial around their debt and i have massive sympathy for TUI but fundamental are fundamentals even for my favourite holiday company, customer yes, investor no
if you think debt is bad for business then I suspect you have never had your own businesses, The tax benefits allow them to cover the cost of borrowing particularly at a time of all time lows. If TSCO had paid down debt then they would have really thrown the cash away. That is why they chose to reduce their Pension liabilities.
The Weighted average cost of capital is good with this company, debt is covered very easily from earnings as is their yield. EPS is excellent too.
Apologies if this sounds a little patronising but you don't run a company like you run your household. The numbers at TSCO are good. It is a defensive investment with a good yield with the potential of some capital gain.
What I don't understand is why anyone not invested here would want to waste their energy posting on a bb that by nature usually have experienced private investors. What I post or others natters here does not determine the direction of the share price.
Go on the AIM bb's and influence your fellow investor there. Some of those debt laden companies without revenue need your well intended advice.
Having thought this through short of a correction, I am sure I won't reinvest so good luck all.
Tesco Market Cap circa 17 odd billion (Market Cap does not include debt obligations)
Debt obligations circa 8 billion
Cash on Hand/working capital circa 2.35 billion
So they have debt obligations nearly half the market cap when they could have eradicated it.
That debt will never imo be paid off just continually refinanced/recycled
Net debt 5 3/4 billion but they are servicing 8 billion in debt(and i don't care how cheap it is)
Tesco could have been debt free
The lemmings I refer to in this instance were those raising the price, all buying due to broker recommends and directors deal news. Allowing me to cash out and take profits on Friday, earlier than expected. The director deals and the broker recommends do nothing to cover the sins of BOD regards needlessly driving the value of the company down by many billions, especially when given the perfect opportunity to raise the worth of the company by billions. It's elementary that to fund takeovers and/or growth of a company it needs a high powered valuation. Instead they chose to keep the debt and line their pockets. Simple stuff showing that the BOD are not acting in the company or shareholders best interests regarding value.
Good luck with your Tesco investment.
@checkricky "OHHH unless not invested and just watching on the fence but have a lot for negative cr@p to harp on about I think they call them a 42 carat plonker ......
Not sure why you need to resort to being abusive ?
this is a discussion board not a safe space where only positivity will be tolerated. This is how those who come here learn from healthy discussion including myself.
I stand by all that I have posted, Tesco has 8 billion in debt obligations it didn't need to be carrying.
No point posting broker estimates that have been wholly positive going back 2 years and very much on the high side when they never have come to fruition. Tesco is in the early 230p range on a reduced share float. incredible !
I had 2 shares going back 2 years that I saw as great investments, Tesco was one. THe SD caught my eye then when it was not as it appeared i thought surely they will clear the debt. The debt was always in my rear view mirror on TSCO as was the Pension deficit. Well they sorted one and not the other and for the most opaque reasons did a return of capital under the label of a Special Dividend.
This in my view has cost holders a lot of upside. Oh water under the bridge some say, no it isnt; because the decision makers are steering this company. They need to be held to task and not given a free pass by shareholders of which i was one until recently and potentially may be again
To see a possible re-investment case i have to consider the upside. and what weighs on my mind are the BoD, and the 8 billion debt obligations. At least the pension has had a chunk of change.
''Took advantage of the lemming investors ''
if that were the case then you would have sold all of your shares.
If it reaches 240+ plus before xd then investors who bought today would not have been lemmings would they?
Good point re the institutions who are not gross funds could well have lightened up before the SXD.
Silence (from some) is golden, indeed !
End of day was great. Took advantage of the lemming investors buying after the director deals and sold half my holdings at 231, much earlier than I could have hoped.
As a defensive stock through the pandemic Tesco was OK.
Going into recovery, the sins of the BOD have been laid bare and maybe the 6p divi and prospect of 20% growth might take this to 240 plus before ex-div at which point I'll sell the rest.
Cheers all and GL.
No coincidence that the negative posters who are not invested stopped making any comments as the market closed.
Like I posted earlier, if this is such a poor investment then why have the algo trades. Who benefits?
Another observation that has been overlooked. Many institutions would have reduced prior to SXD in order to reduce their tax liability. Many of those will have annuity obligations to meet.
Most certainly the prospect of the next 6 months for TSCO is looking encouraging, dare I say rosy ?
Closing just shy of 232p for the week certainly puts a smile on my face.
So we finish at the price it was at the close of play Tuesday. Priceless, focus was on the ‘one of costs’ of the pandemic. Booker up and running now and the share of online sales increased significantly. Staycations and home entertainment likely to be high due to difficulty in hols abroad.
Money from the impatient to the patient :)
Ok so the share consolidation was crap we all agree but that's the past.Now looking to the future a lot of investors will be looking for good safe investments to spend their new 20,000 Isa allowance.I can imagine a lot of them sifting through share data this weekend looking for a safe bet with a dividend going on the cheap. Tesco fits the bill and it will rise steadily up to the exdivi day and if bought at this price will probably still be lower than what it falls to. I expect this to be 3 pound by the time it gets to exdivi by then hospitality will be open and the economy in good recovery as is already happening see the ftse flying up today.
That's a sure sign of confidence! It has been a good day all round. Enjoy!
"280p to 290p range will be here soon :)"
Well I guess it depends on how much you have invested in TESCO it my even be this year if it's the right amount....
OHHH unless not invested and just watching on the fence but have a lot for negative cr@p to harp on about I think they call them a 42 carat plonker ......
BROKER RATINGS: upgrades from two brokers
CREDIT SUISSE: RAISES TESCO PRICE TARGET TO 283 (280) PENCE "OUTPERFORM"
BARCLAYS: REITERATES TESCO TARGET TO PRICE OF 290p "OVERWEIGHT" .
Dates to keep in mind
20 May 2021: Ex-dividend date
21 May 2021: Record date
11 June 2021: Dividend Reinvestment Plan Election date
2 July 2021: Dividend payable
280p to 290p range will be here soon :) as I was saying