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Do we think there shall be a special dividend after the Final?
I would say in terms of the SFO case all those involved are long gone out of the business. TSCO took its medicine several years ago and is in a much better place now. In terms of cheap borrowing, if it's on offer, you're gonna take it.
Have we already forgotten the SFO case for cooking the books? They spent a fortune of company money to make sure nobody took the blame.
Plus Warren Buffet sued the pants of them for misrepresentation after he lost a few million.
Are these people you trust with high finance?
(1) Share buybacks to ensure their bonus.
(2) Borrowing at cheap rates is paid for by Joe Public ie:- Savings are constantly devaluing to subsidise big business and property prices have are based on borrowing rates, NOT on the actual value.
Perhaps the crime is in allowing this to happen, a return to viable interest rates would now see many bankrupt. Our government doesn't have the balls for that!
Common mistake amongst PIs that corporate debt is the same as personal debt.
My god all good businesses use debt as leverage for expansion. Additions etc.. Its great business sense to leverage(better and more accurate word than debt)...
When borrowing is close to free anybody would be silly not to .
I'm in business and when cash flow is good bit of borrowing is the right thing to go.. Mismanagement is a different matter er though.
Just above 274. Still a very good couple of days for TSCO which is generally a very sluggish mover.
Longterm
That was my point earlier in the year. Some investors don’t get the fact that debt can be good for a company.
down 18.5% from a year ago.
Meanwhile investors using the return from asset sales, purchasing further shares enjoy
x% dividend income plus capital appreciation.
So glad that the BOD didn't use the asset sale proceeds all on debt repayments in a lump sum.
Spin
Do you not know that businesses borrow money - get real.
The level of debt is of no concern to me whatsoever and certainly not of utmost concern to the BOD, otherwise they wouldn't have money going into an ongoing buyback programme
Spin
''I'm not comfortable with the BoD and the debt levels''
if you are not a shareholder then it should be of no concern to you.
best to leave the daft people to enjoy the re rate of Tesco.
It aint all that :)
It's a good company my argument is could have been a debt free BRILLIANT company
You have the debt and the BoD...I'll pass toodle pip
You obviously didn't grasp the concept of consolidation - it was a cosmetic exercise.
Well from the announcement i'd wager 99.999999 percent of shareholders did not know that.
The SP is the highest for quite a while and good on those who bought and held from 2.21 odd. As i said in a downturn at that point would defo gone sub 200p. God for holders it has not. Current SP is no consolation to those i have seen on this BB who bought at 450p or 350p. As i Said I'm not comfortable with the BoD and the debt levels
Spin
17 Apr 2021 09:36
''Having thought this through short of a correction, I am sure I won't reinvest''
04 Aug 2021 08:29
''The simple answer is a lot of people who own tesco shares are as daft as brushes. ''
best to leave the daft people to enjoy the re rate of Tesco.
Are those grapes of yours a bit sour?
Spin
''If you reckon a reduction in the shares you hold at the same time as giving you a taxable dividend is returning anything to shareholders then you have a different concept of things to most people''
You obviously didn't grasp the concept of consolidation - it was a cosmetic exercise.
The return of cash to shareholders was real - sensible shareholders would have used the money to go towards purchasing more shares at low prices.
88 > When these re-ratings hit the institutional desks favouring div income the SP value is more likely to follow suit all things being equal.
holding up today atm expected to see more profit taking.....broker upgrades helping.....
Spindler
after selling you made the following comments. In June.......
I think there is a good chance it will drift lower to above 200p but in a FTSE market downswing yeah 177p is definitely possible.....would defo be a buy then even though the debt on their balance sheet makes me want to retch
I'm sure you will be able to 'spin' your post to make it look like you are an expert and an investment analyst. How many private investors were influenced by your comments? You never seem a positive kinda guy'
MillCottage
Lowest 215 and 236 from the SD.
"It would take years to spend £5 Billion on buybacks, which is why it was returned to shareholders in one lump sum."
If you reckon a reduction in the shares you hold at the same time as giving you a taxable dividend is returning anything to shareholders then you have a different concept of things to most people ! for those who were not in a tax free wrapper it actually cost them money and even more money when the share price fell even after a reduction in the amount of shares in the market ! Even now at current SP its been barely any benefit to long term holders and let's not even talk about those long termers with purchase prices north of 300 p and even 400p......nothing whatsoever to celebrate and now they own even less shares !!!!
I did the same and used the proceeds from the special dividend to buy more stock :-)
Bought in for between 218p and 228p over a period between December 2020 and June 2021.
barchid
Have to agree. Sometimes the patience needed is the most difficult investment to make when looking at making a profit. Like your good self I ignored the rights and wrongs of the SD and used the cash to buy more. :)
would be very nice...holding for the long term
leas
Indeed, sometimes patience is king.
It usually is with these "sleeper" stocks and then they wake up, largely because the investment community these days all seem to like crossing the road together.
JPMORGAN RAISES TESCO PRICE TARGET TO 330 (300) PENCE - 'OVERWEIGH
GOLDMAN SACHS RAISES TESCO PRICE TARGET TO 320 (310) PENCE - 'BUY'
BARCLAYS RAISES TESCO PRICE TARGET TO 325 (310) PENCE - 'OVERWEIGHT'
BERNSTEIN RAISES TESCO PRICE TARGET TO 330 (280) PENCE - 'OUTPERFORM'
JPMORGAN RAISES TESCO PRICE TARGET TO 330 (300) PENCE - 'OVERWEIGHT'
GOLDMAN SACHS RAISES TESCO PRICE TARGET TO 320 (310) PENCE - 'BUY'
BARCLAYS RAISES TESCO PRICE TARGET TO 325 (310) PENCE - 'OVERWEIGHT'
BERNSTEIN RAISES TESCO PRICE TARGET TO 330 (280) PENCE - 'OUTPERFORM'