George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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The thing is pothouse what was inflation back then? If you have a savings rate of 6% and inflation running at 5%, the real return is just 1%.. Adjusted cash rates are never that good...
In 1998 I had a Tesco savings account that paid 6.7%. That’s a dream come true in these uncertain times.
Rosewall
Only echo your thoughts. True value would then be determined after several weeks in regard to the sp. It is clear there will be some volatility in the short-term after the GM.
Enjoy your weekend
I am happy with the special dividend and ambivalent about the consolidation. I would prefer to see them actioned separately rather than causing confusion
George
Same pattern now for the last couple of weeks. Maybe accounts for all these algo trades putting the brakes on the sp in order for the larger institutional trades.
The pattern will change of course. Expect it go higher when they are fully loaded. May even get a holdings RNS at some point.
Just my opinion of course.
Big after bell buy ??? Any thoughts?
'that the company is not a viable business if they have debt......
Spindler
I know this wont sit right with many private investors as they see debt as a reflection of the company not being viable without it. Debt is reduces your tax liability. It also builds your business credit.
Following link may help too. I think paying into the pension with the proceeds of the sale was good but if I am honest I am undecided and not knowledgeable enough to understand the full rationale of returning money to shareholders by way of a SD. It can help institutions and their pension liabilities but I cannot see the BoDs not taking advice from the city.
https://www.montrealfinancial.ca/blog/7-reasons-why-debt-is-good-for-your-business.html
A reduction in the pension liabilities due to circa 15% more deaths in 2020 than was previously factored into pension liability calculations. More excess deaths into 2021. Some of these excess deaths will be drawing on defined benefit schemes, some of these will be Tesco.
And Barclays forecasting 2.90
So like you say, the board have done as they see fit, they do not believe the current debt levels too high i presume.
Regarding debt-
Say your Return on investment = X%
Say your Cost of debt (interest) = y%
if x>y then makes sense to have debt
But a company always have to pay interest on the debt, so it then becomes down the risk the company accept. If you have a bad few months you don't want to have too much debt so that you can't pay back your interest and risk insolvency.
JPMORGAN TESCO OVERWEIGHT Target 300p
Meant to add because surely that would take debt liability off the books and add to the robustness of the business. Would probably have boosted the share price as well to the benefits of the share holders
At the end of the day the board of Tesco are going to do what they see fit, regardless of all the musings on here. I do have a question just for my own interest if someone thinks they can answer ? Why do they not use the proceeds from the Asia Businesses sale to pay off debt ?
haha!
@ longtimeinvestor. I don't know exactly what are you referring to, the sale of the business will be a business disposal. This will be treated differently from normal operational profits, but how it’s treated is done by Tesco and does not affect your tax situation as a shareholder.
Tesco have decided to return this to shareholders, which they have chosen to do through a dividend and for which dividend tax applies to you, not income tax.
Chris idea makes no sense. The facts is Tesco now has more cash than they need or can invest in. This should be returned to shareholders who can invest it elsewhere to put it to better use than doing nothing but sitting in Tescos bank account. I do not see how Chris’s idea addresses this at all.
They could do a share buy back which returns cash indirectly, although buying back a quarter of your market cap will probably inflate the price too high temporarily while the buy back in progress (too many buyers not enough sellers). Once its above its real price (whatever that may be) the company is paying too much for the shares, and shareholders would be better off having the dividend.
No he's not.
He's one of the delivery drivers!
Lol
Are you a tax accountant?
Thank you for your response and views on the matter leas, and sorry it took so long to acknowledge.
Like Lynny said, I think you summarised it up perfectly. I wasn't expecting a massive rise, but an increase on such an important day would've been nice all the same. They are a sound investment though, been involved for some time as their dividend payments are reliable and consistent usually and the SP range is typically predictable as well.
I have a feeling that the weight of this special dividend is stopping the SP from moving up further, though, and as we don't yet know the terms of the consolidation, that causes further uncertainty. Just my thoughts and opinions, dyor everyone. It's getting frustrating seeing the same questions asked over and over when the answers are in the RNS's.
Beautifully put , or as I have said , not all the sharks are in the sea. Halved our share price and got away with it .
LTI is right... it is a return of capital . so here is the solution for both Income and Capital holders :...
TSCO can issue B shares at a value of say 50p and the rump of the existing share , call them A shares for the valuation at the split (say 190p).
this is a tax neutral event so nothing happens except that now you hold two shares
choice 1: Now the shareholder with a preference for Capital can elect to hold both the A and the B shares for the long term. in effect it means that things tick along as usual.
choice 2: the shareholder who wants to cash in the B shares will make a disposal as and when he needs the income. Until (s)he sells that B share, there is NO disposal and no income tax payable on the dividend until the shareholder actually sells the B shares into the market.
it couldn't be easier - but no doubt TSCO BoD will be itching to pay legal heads hundreds of thousands for this bit of Room 101 taxation information. what strikes me is this company loves to fritter their shareholders money away - right back to Leahy's shenanigans and drastic Dave single handedly halving the share price. Did any of them serve a day in prison for an alleged crime or did any of them pay a penny in a fine from their own pockets ?
?
Appears that the results were broadly in line with what the market was expecting. I'm struggling to see the benefit to hold the shares over a short time horizon now. Logically sales would dip as we come out of the pandemic, more people have moved online which is poorer margin, potential issues with transportation of perishable goods due to brexit, upward pressure on wages (morrsions announcement) and longer term amazon lurking on the sidelines, pension scheme liabilities, potential losses with the bank - struggling to see the positives.....anyone??
Rosewall
Tesco still do have a commercial tie up with Carrefour - it's a growth area for both business built around consolidation
I believe are returning capital from a sale, and therefore it should not be taxed as income.