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Ocado market cap £15bn and 2% market share, Tesco market cap £17.5bn, 27.2% market share...
Good point about the pension deficit. That's a 3p premium already.
The problem of justifying a sharp jump in SP upwards is that the current value doesn't indicate this unless the yield being priced in is in the region of 6%. The hive mind of the market usually know what's up.
Clueless
Another thing of note that has come out of this pandemic is the online business model. Previous to this some analysts had concerns about the viability of some of the stores that had aggressive pricing from other European retailers.
I have since read that opinion has now changed and the need to build supply hubs for online demand increases is not necessarily the correct strategy. They have found that larger stores within the community have the capacity to meet that demand and food is reaching the customer that is fresh and without many errors.
Maybe a biased view but TSCO seems to have geared up almost seamlessly to meet demand.
Getting your groceries via Uber in non cold refrigerated vans by non vetted employees does not really do it for me, but operating costs from rivals will have to increase if they want any of the market share.
Hi leas yeah good point about bookers any lost sales instore will move to bookers when we start to supply more wholesale as lockdown eases and yes loads of positives here hoping we can leave the 220s behind this year and move to 240 to 270 range fingers crossed.
Clueless
One of the Asian businesses was profit making. Not sure if the figures. Savings from selling off if the mortgage book should help the banking arm but that could still be a bit of a concern to the institutions.
Booker should be very busy when the hospitality sector opens and more people in the uk opt for a ‘staycation’
One thing for sure, more positives than negatives.
Let's take the mean 7p and 4p 11p overall an increase of over 20 % fantastic considering the pandemic.
Should be 10p per share profit 1billion with half returned to shareholders no 250 million to reduce pension deficit should go back to shareholders too plus 180 million Polish sale may be an extra bonus if they return Polish sale that would total 930000000 against 7.7 billion shares which would be 12p per share thats probably best case senerio.
Think this is about to fly. Only concern I have is US market is due for correction which may bring entire ftse down. But very bullish in longer term. There are things I would like to see tesco to do more on but that's a different topic altogether.
Arithmatic and Statistics plus and understanding of Finance is what i think are important.
Please call it maths.
You are both so right, pure math and the like are good if you intend to be an engineer/architect/scientist but most folk need a good grounding in statistics and finance which they don't get at school. I am a retired accountant and the number skills which I have give me a huge advantage over the average bod. However when folk say "you must be good at maths" I always say "not really, it's the simple stuff I mainly use in my job". What do I mean by that? Accountants use percentages, ratios, statistics and basic arithmetic and always to make comparisons and possible predictions but they do these things so often that they have real meaning and value in the world of finance. Thus they are not easily fooled by some of the products offered in the money world as so many others are.
Every little helps
and a better day today. Hopeful that this will rise now toward FYR's. JJ
Pleasently surprised that my comments have been well accepted.At school back in the late 60/early seventies we did Logs and algebra which i have never understood.How i wish the housing market was explained
Chelwood, " I do believe our kids should be taught about financial services and their workings at school because few have any idea of the future they are walking into".
I couldn't agree more. Maths classes should include sections on good and bad debt plus topics such as mortgage Vs renting, compound interest and APR. I have been home schooling my 15year old during lockdown and working with him but I feel that some of the maths subjects could be replaced with more relevant topics so I have given him some extra guidance. Martin Lewis (MSE) has some good guides for both young and old alike.
hoping for between a 7 and 8p final to be paid in July
PH
Approximately 20% less shares in circulation. Dividend well covered. 2 loss making businesses sold and pension costs lower.
Strong argument for an increase in my opinion. Only question is how long the cost savings take to show on the balance sheet.
As far as I can see, no Div date has been announced for later in 2021, but I would be very interested on thoughts regarding next Div payout and whether I top up now.
In full agreement with teaching children about finance and day to day budgeting. Whilst having dinner when my children were 9&10 I mentioned that I had been promoted, and got a good pay increase, quick as a flash my son wanted to know how much, and suggested that he and his sister might have an increase in their pocket money. They both manage money well, and my daughter after completing Uni at age 20 went on to buy her first flat 2 years later. I have often thought that in retirement that I might contact a local school to offer guidance to pupils in this subject. JJ
Ref your last paragraph Chelwood I fully agree, and also teaching children about general financial responsibility would go a long way too. So, so many young adults who get themselves into a mess with varying kinds of credit etc without fully understanding the implications of it.
Morning
Sorry to hear about the circumstances with your wife.
My own opinion is more than ever we have to look outside the box,so to speak.The days when the wife stayed at home and Dad worked 9 to 5 are long long gone.
I have no issue with pensions but think it is short sighted to think they are the be all.
The pension provider is in business to make money and keep there shareholders happy and myself and others were dissuaded from taking all our money.If everyone did there would be no shareholders and no pension company.
Finally i do believe our kids should be taught about financial services and their workings at school because few have any idea of the future they are walking into.
Chelwood, here is another option for those out there who still have 20 years + to retirement, which my wife and I took, and must say this is specific to us and may not suit everyone. I used to work for British Aircraft Corporation as a Toolmaker, but changed direction and went into Financial Services where I completed 20 years before retiring early. The knowledge gained made me think Pensions would not be the best route for us, albeit we didn't stop them. We bought some Investment Properties (gradually) and held them for on average 12 / 15 years. Over this time span we on average generated £22500 per annum in total profit after paying all Taxes and Maintenance. During this same time span this enabled us to have many Long Haul Holidays around the world finally visiting 68 different countries. My wife became totally disabled and we then sold them, and luckily for us making a total net profit after all costs and capital gains tax of just under £1M .
Moto is, you never know what is going to happen in life, so do what you can whilst you still have your heath, save for the future yes, but enjoy your life along the road to retirement and remember your pension(s) are always going to be subject to Income Tax, including the added Government Pension.
Anyone care to speculate ? Only a month before any dividend announcement.
Will the gap left by Poland and Asia be filled by a good year in revenue and/or not relevant in earnings per share due to the consolidation ?
IMO There is no excuse after such a consolidating fiasco created by the special dividend to show anything other than a resilient dividend per share. Then again, this is Murphy and company.
My strategy regards the Asian sale special dividend hinged on the yield going forward, and the current SP lagging down at 220 was not part of the plan.
An expected 12p/13p plus paid in dividends annually should make for an SP of 240p to 270p, whereupon I could consider top slicing some of my holding.
Chelwood similar thinking to me but I would seriously consider having as much as possible in an isa with good high interest investment trusts or shares, annualties, once bought, are goodnight to money from the family .
@Chelwood Try moneyadviceservice org guaranteed-income-for-life tool
The amount a company will pay you depends on your age and the age of your partner, your post code, your health, and whether you want payments to go up each year by a fixed amount or by inflation.