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Sounds like HL don't know what they're talking about either, which is worrying. Their comments contradict themselves.
This is how I see it and you can shoot me down in flames if(when) you don’t agree!
The consolidation is 15 for 19. So if price closed at 240 on Friday then it opens at 304 on Monday morning.All other things being equal.
Ie: 19 shares at £2.40 = £45.60 so
15 shares at £3.04 = £45.60
So in my dubious opinion the price should open at £3.04 first thing, thereafter Mr. Market will do as he sees fit.
The Tesco BOD have said that they intend to compensate shareholders with a SD and so I can’t see how the 51p dividend can/will be deducted from the share price.If it were to be deducted then, as a number of you have said, what would be the point?
I was recently involved with the Aston Martin consolidation which was 1 for 20. For every 20 shares you held you got 1 post consolidation. The share price pre consolidation was 70p and was multiplied by 20 to bring about a £14 share price post consolidation. I appreciate there was no SD involved with the Aston Martin consolidation but I can’t see how the Tesco consolidation is going to play out any differently.
Gary,
Do feel then that Mr Lewis wouldn't of reduced the share total then had he still been CEO??
Nige
You have this spot on Tigra thanks for your post. Dave Lewis stated that he wanted to repay the ordinary shareholder for the financial mismanagement debacle with additional dividends following the sale of the Asian business. Well the board have given us an additional dividend (thanks) & then taken this away by reducing our holdings (no thanks). There just aint no reward so Mr Lewis hasn't got his wish & this board should be lined up against a wall and made to eat some Tesco's value sausage rolls, they really are abysmal but only cost 99p for 12!
Tigra
That was well put!! It was Dave Lewis' idea of supposedly rewarding share holders for their patience because of the accounting scandal!!
I shall kick the punt in the shins if I ever see bump into him!! :) :) :)
Thanks ECRyder, but I'll stick with Ocado for now. Recent drop has seen them fall from almost £29 to low £25.
As they always do, they will bounce back after the 'post results dip' levels off (voice of experiemce, 12 years working there and subsequent years investing) and will be back around mid £28 within a few weeks. I'll settle for a 10% return on that for now :) Don't need a dividend when you can pick up returns like that, I'm happy to let them reinvest again and sign more international deals (watch this space) for even more growth.
Tigra,
Thanks for sharing this.
In my own case, it is consistent with my own "belief" as to what's happening (I prefer "belief" to "understanding"...).
ATB,
Mike.
Just remember it's Mr Market that determines the SP not Tesco or it's shareholders. It may rise it may fall after( imo) this ridiculous ill named SD. We shall see this coming week and the weeks to come.......I am sure the mechanics around this are designed as an anchor but nothing is certain with Mr Market. My own view is this could head off to the races I can't see it falling
Lunatic,
I am a LTH of this share and work for the company. I have been explaining the deal since it was first announced, when many denied that there would be a share consolidation at all. With the number of common sense postings on this board, I would be surprised if there were many people who were under such a misapprehension.
I'ts Special because i'ts a Divi that makes NO difference to the value of your holdings in the company your getting your own money back ,I feel for all those who bought thinking they'll make a nice easy 50p on each share .
y11
''it’s the weekend ''
Have you nothing better to do?
Wow long term invested it’s the weekend give it a rest!
lti,
Thanks for the various recent responses/comments to me in the thread below.
Mike.
Lti
thanks
j
you will have less shares to sell on Monday.
j
you will have less shares to shares on Monday.
j
''Will the shares rise on Monday''
It will rise or fall like any other day.
The consolidation has been calculated to give a similar share price as it closed at yesterday.
''That means the number of the company’s shares will be reduced to reflect the 'return of capital' on the balance''
''the regular dividend is funded by operating profits from Tesco’s UK operation.''
https://uk.finance.yahoo.com/news/tesco-special-dividend-investors-know-071535906.html
I bought the shares on Friday at 2.39 as I thought it was a bargain. Now can I sell on Monday without losing the dividend. Also I don’t understand if Tesco is giving this dividend and then taking back your shares u lose out. Will the shares rise on Monday
up
on the number of shares held yesterday
m14
'' that this might be going a bit off-topic.''
no, anything to do with taxation regarding shares etc isn't off topic on the Tesco board or any other board. I'm sure some will find any links useful
hi all
I was wondering if the SD is paid on the number of shares held before or after consolidation , thanks in advance
'' £18,800 worth ''
£23,900
m14
''and probably only against *the same kind of* capital gains (so gains on share sales, but not, for example, gains on a house sale). ''
As far as I know, it doesn't matter where the gain/loss has been obtained.
M14
cannot remember if Vodafone created 'B' shares to give a choice. Most likely did.
The Tesco special of course can only be either an 'income' dividend' or a 'capital' dividend. I will be treating it as a capital dividend as its proceeds from an asset sale .
If I had bought a further £18,800 worth of Tesco yesterday out of my capital, I will not wish to pay income tax on £5,090 of it when they return that much of my capital back to me.