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That's a sure sign of confidence! It has been a good day all round. Enjoy!
https://www.lse.co.uk/rns/TSCO/directorpdmr-shareholding-xg0c1fxyx3jb6dc.html
"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
"280p to 290p range will be here soon :)"
This time next year we will be millionaire Rodney! (said in a david jason del trotter voice)
I kind of mentally noted a lot of posters buy in prices and share allocations including thise with cheap options. Let's do some maths shall we....a real conservative example 20000 " 2.25 45k cost....if the share price had risen to say 3.25 if the debt had been expunged which i think it would have...that's 20 grand that soul missed out on. Many much lower buy in prices and much larger holdings but i figure 3.25 post asia sales was doable easily. So a lot of folk have had chunky opportunity gains cancelled. Yeah may still happen but it doesnt look like it does it ?
I don't understand why they did this and i sold for that reason before the BS SD. I made a profit but i reckon i could have made a tad under 40k more and that was when i decidced Ken Murphy aint my CEO !!!!
I think he's a bad hire and I know full well Lewis may well have had a hand in this as well or been the whip hand.
The first decision i head Ken was confirmed to make was to pay bacck the rate relief...way to go Ken..way to go...big boy pants huh ?
Well better day today at last, I was thinking what the hell has been going on with Tesco, all week this has been failing. I hope the share price will sort itself out now after a week of selling, was not expecting the drop yesterday but the share price had to start rising at some point and I hope todays rise will hold into the close. And as we all know from some our posters on here we have the broker upgrades and the 5.95p Divi to keep us going keep the eyes on the prize and don't be distracted by some negative posters who are hell bent of try to distort the share price to get in cheaper. The results are good as far as the covid environment goes things will only get better
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 :)
The whole point of a return of capital is because the business cannot see any use for the capital. So they left a shade under 8 billion debt on the balance sheet instead !! It's only 5.5 if you take into account cash on hand but they have loan obligations for nearly 8 billion.
Nuts ! Nuts Nuts ! I have my suspicions re the rationale and all of it revolves around the BoD making decisions that favour the interests of the BoD and their chums not the company or the shareholders !
When you go down this road on this scale you have charlatans at the helm. It had all been on the right track up to the fake Special Dividend, an actual return of capital.
A debt free mega giant woudn;t that have been a sight to behold and have shares in !
As Gavster said it would have been the Jewell in the FTSE crown...
IT'S JUST A MATTER OF TIME LET THE SP WHIPSAW SETTLE > CREDIT SUISSE RAISES TESCO PRICE TARGET TO 283 (280) PENCE - 'OUTPERFORM'
Seen all manner and higher estimates for 2 years now...it hasn't happened
LTI
I think some on here don’t understand that an investment here is not for all. If I invested in a company with greater risk to my capital then I would be disappointed with a small gain after a number of months or years.
TSCO is not a company that will see the gains some expect. The fact that the company decided to return the proceeds of the sale of the Asian businesses back to shareholders speaks volumes to me. They currently do not see an opportunity to create growth other than within the business.
If you take the cost of Covid out of the results then the results were better than expected. They still made 800m profit and most of the Covid safe costs will be significantly smaller going forward.
Keep collecting the dividends which IMO are well covered.
Much better than the 0.5% currently being offered on some ISa cash investments.
The mechanism to return capital from the sale of a business is by way of a SD. It was not an income SD from excess business income that had been generated.
I will not be paying income tax on this return of capital. If others want to lie down and class it as income then that is a matter for them.
Tesco appears to me to be at an attractive price level considering the improvements in the home market.
The current price equates to 179p pre consolidation. I'm sure most would have thought hat attractive a few months back.
IT'S JUST A MATTER OF TIME LET THE SP WHIPSAW SETTLE > CREDIT SUISSE RAISES TESCO PRICE TARGET TO 283 (280) PENCE - 'OUTPERFORM'
Numbers out in my last post due to the share consolidation but the point remains exactly the same.
The debt could have been paid down, the dividend raised and the share price could easily be in the 300s. .
Absolutely correct Spindler.
The BOD are the epitome of "Snouts in the trough".
The company pay's around 900m a year in dividends.
Instead of the special dividend which the BOD can now spend on jetting to their Barbados villas, the debt could have been paid down and the dividend raised to 1.5 billion (15p a share per year) guaranteed minimum for the next 3 years for example.
With a dividend of 15p a share, the share price would most definitely be at around 300p.
Happy shareholders, happy company, darling of the FTSE.
Instead, Tescos has been turned into a dog by those same directors.
As I said, I'm out before ex-div.
Yes I know the argument and I don;t agree with it. Just because debt is cheap doesn;t make it a good idea and i am well aware of the differences between running a business and a household or a govt balance sheet for that matter. CFO don;t make me laugh Fred Goodwin was a CFO and have they found the CFO of Wirecard yet ? You seem to give these people a pass because of their status...Goodwin drove Natwest from 7 pounds a share to 10 p and a govt rescue. We have all seen the slimy cronyism in politics recently Camoron and Greensill. The city is full of revolving doors and suspect decisions.
Let's agree to disagree but I stand by my argument(based on a business perspective not a household budget. THat Tesco would be in a better situation now with zero debt the same share float as previously and the share price woud probably be north of 300p. Have a good day I'm off for a swim give you all some peace :) But I hope many heed my words and look at that BoD a little more critically and vocally..cheers :-)
Spindler
Clearly from your posts you are a successful investor but you miss some of the fundamentals in business. You seem to look at business the same way you look at managing the running of your household. Debt is good for business for many many reasons. Not just obvious tax benefits but leverage, weighted average cost of capital(WACC) Also equity is far riskier than debt for financing investment.
In this period of time, where debt repayment is almost zero, TSCO would be stupid to have paid off some of their debt with the proceeds from the Asian sale. If you go through the recent RNS feeds then you can see they have recently refinanced their debt at a lower interest rate.
I don't expect you to agree with my post but I'm sure the new CFO will have a bit more understanding than you or I. I just don't understand why you waste your energy here. A bit like all those algo trades that serve to keep the current share price down. If the fundamentals are so bad, why have them.
or should be
Its a place to exchange thoughts...all thoughts..people can then think hmm that's interesting..hmm no that isnt....i think some on here need to engage some crticial thinking around the BoD...and not give them a free pass...they have cost you money...there are certain posters who say oh well no guarntee...hmm thats investing...yes it is ...but critique of the company is critical....the BoD have gooten a free pass in my opinion ...what's up next ? They are being renumerated handsomely i remind you and they have made decision i ad many others find hard to fathom. The SD was a lie, it was called aSD ..it wasn;t..it was a return of capital under the wrog label ...WHY ? Tesco has 7 billion debt take out cash on account 5 billion...tha could have been vaporised...and you would be sitting holding shares in a money making debtr free company....that's not investing oh ...well thats decisons made by well paid people up in the wheelhouse....whose first look out is the company and the shareholders as one..nothing else
@Chelwood @Leas
Gents, totally correct, we all get things that do not go as well as hoped but there is nothing to be gained by constantly posting how fed up one is, it is rather tedious for current or potential investors who wish to swap ideas & perhaps test them against the opinion of others.
Buying shares is never a guaranteed way of making money, sadly some seem to think it should be.
@Chelwood...agreed and I have sold. I was looking at the debt load that could have been paid down makes me mad to be honest..I cant see me jumping in here short of a correction or i see some opportunity...imagine that a debt free Tesco with the same share float as before....anyone reinvest their BS SD at 2.46 odd to take their share tally back to where they started and watched the SP shrink ? Many i figure
Chelwood
Could not have put it any better. Sadly LSE have too many members that are Warren Buffet wannabe. That and 10 bob millionaires that try to convince everyone that they are so successful at investing that any opinion they post is factual.
From experience the opposite usually applies.
Having read and digested the board here for several weeks its hard not to detect there are some disgruntled investors.
At the end of the day no one is forced to invest here or anywhere and the world of investing to me is emotionless,everybody wants a fast buck.
Sell your holding if you believe you can do better elsewhere.I believe this will come good.
Oh and TUI are now also doing a convertible bond issue for 400 million on top of all that and Barc have the highest rating on it amongst the broker community....current SP near 400 p there is some magical thinking sentiment going on with that stock corwd...even Barc don;t agree with current valutations
Barclays have a 300 p rating on TUI after a rights issue, govt bailout and a shattered business environment. Jeffries have a 78p rating on it. I have watched the ratings on tesco at high 2002 and north of 300 none have proven correct for at least 2 years. If this stock can;t catch a break during the most exceptional times when it was going gangbusters when can it exactly ? Oh yes the extra costs....and then they pay back the rates relief. And they did that because of a SD that wasnt a SD because they knew they would get flak for it in the media. They were determined to call this an SD when it wasn;t and they were determined to push this through .....WHY ? I suspect self interest, favours for mates in the city ? Future "goodwill" ? I hold the board suspect at TEsco .....Dave now gone is he doing a ferguson(MUFC) wanting nobody to follow his success in reestablishing Tesco so he can bask in chosen one status ? Well Dave I guess you righted the sleeze ridden ship, but success with SP where it is that aint no success. I have seen posters here who are still underwater on their TSCO share purchases back in the good old days...400p plus.....this tukey can't break 250 barely in exceptional times being the only business trading...what's the outlook now ?
Hi Gavster-NBC > Please Don't throw the baby out with the bathwater. Barclays today reiterates overweight with a target price of 290p. ALL IMO
With every dividend, special or normal the value of the Tescos goes down with it.
It is exactly correct someone stated that the board acted in their own interest and not the company's, no dividend reinvestment from the BOD.
I still think it was right to pay back the tax relief.
The decision to only match last year's dividend in pence per share is shockingly poor considering the Asia sale.
The special dividend has not done all it could have done for the company, so why would people invest in Tesco if they are not going to fully invest in themselves ?
I'll be out day before ex-dividend, that's if there is even a rise towards it.
Better companies and yields to invest in elsewhere.
All IMO