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Nigella
TSCO was up when the market was down. I still think it is being held in this trading range as ii take positions. Hence the algo trading. I’m looking more long term and here perhaps for different reasons.
I wish you all the very best with your future trading.
yes....we all have our agendas .each to their own
I`m off with my spondoolies... to pastures very new (for me) PCR and Lateralflow tests vie Myhealthchecked MDH.
and one for the future ..... Hydrogen........AFC energy ......AFC
O a purely selfish view for myself and colleagues, a special dividend without consolidation, would scupper the SAYE plans. And before any one moans, without colleagues there would be no Tesco for you to moan at.
I sold my holding in my ISA and kept the ones in my SIPP, I expect the SP to drop a bit more after the dividend and planning on buying back the ones i bought, its not free money that we are getting, So i have edged my bets
well, I hung on and hung on hoping to see £2.50.....or more .
I was horrified from the start , when consolidation was announced.
My perception is...... I will be cashing in 20% of my holding , with the prospect of a very high break even on my remaining shares.
As Boris and Doris said ....for example Taylor Wimpey and others .. pay a straightforward special dividend ...job done .And the share price generally always recovers afterwards.
Very disappointed in TSCO for doing this ....5 bn payout to shareholders HO HO ....I think not.
markets up for 2 days now and TSCO is dead in the water.That speaks volumes as to how popular it is.
I baled out at £2.42 ,small profit .
When I do the calculation based on owning a 1000 shares there is a slight fall 0.09%.
So take today’s price of 242.95 (might have moved by now). So the value of 1000 shares is 2429.50
Now the dividend for 1000 shares will give you 509.30 and the 19 for 15 shares trade will mean your old 1000 shares is now 789. At today’s market price they have a value of 1918.03. Add the divi into it and the total is 2427.33 so a slight drop of 2.17 ( 0.09%) Not a lot but hardly the bonanza expected.
Same with any amounts of shares. So it appears that the best case scenario is take the divi and the price increases after that, will having a smaller number of shares help shareholders in any meaningful way. Don’t think it will with all other things being equal.
Will stay in just for the ride.
I'm still hoping this will get to 255ish before ex dividend ..
BorisandDoris
Compensation for the accounts discrepancy has already beebn paid out, the matter is settled.
Thanks for this info,
I personally think this consolidation etc is a total waste of time and money.
I got a special dividend from Taylor Wimpey and it came as a cheque in the post, no messing.
I think that a way of dishing out the left overs from the Asia sale ( after sorting the pension) would be a payment to all the shareholders who lost money when the accounts were falsified.
Good luck.
Just a heads-up to any employees who hold Buy As You Earn (BAYE) shares etc in the Share Incentive Plan (SIP) and are thinking about selling any before the SD and consolidation. Looks like you'll need to make a decision or move them before 8th February! If you haven't logged in lately, there's a message within the portal saying:
"Please note that, due to the proposed Special Dividend and Share Consolidation, if you hold shares in the Share Incentive Plan (SIP), you will be unable to access your SIP account and sell or transfer SIP shares between 8 February 2021 and 16 February 2021"
If you are with H&L call them and explain what you want to do and they should be able to help, I hope you get sorted
I'm wondering if the shares may rise up to the 11th? I may sell although I do think they are worth having over the longer term, profits from being one of the few open during the pandemic should be stellar.
Slightly confused about how a trade may be treated for CGT however if I sell before the dividend and buy back after the consolidation? It's a strange scenario as normally a share would dip by at least the divvy but here you have a mechanism in play that turns 19 into 15 shares maintaining the current £2.40 so I could sell the 19 now at that price but will buy back at the same price after the 11th completely missing the 50p??
Confused by this unless the price rises to £2.90 prior?
If regular dividend per share does not scale up so as to compensate for the 19 to 15 share change then we will indeed have lost out.
Hi I have stupidly taken this years share option not realising what would happen with the dividend. I’ve now got around 10k in shares and I’ll be stung with a large tax bill from the dividend. How quick can I open and transfer my shares into an ISA anyone got an idea thanks
I could not decide on what to do with this Special Divi since am holding in Sipp , Isa and other accounts and would have to buy back in with the Spevial Divi funds and pay the stamp duty etc.
So I decided to do the difficult thing and Sell. After all "buying is easy and selling is the difficult part". So Right or Wrong , I have bailed out today and wait for an opportunity to buy back in since I am very positive and keen on TSCO and think it has a good future.
P.S: I will from time to time still look into this chat board to read all your comments.
Good luck to all.
Regards: Jaffjoon
Thanks reader61.
I'm sure you're right on the unknowns of the impact of the Asia sale but a lot of the other impact would be there anyway. I just meant that I don't personally think we'll be any worse off going forward on future, normal dividend payouts than we would have been if the sale hadn't gone ahead. The impact of Brexit etc would be there either way so if they affect the dividend, they will have done anyway. Just my own view of course.
I've decided I'll be leaving my shares to consolidate. They're all in an ISA from past SAYE schemes or in a SIP/BAYE account and therefore all protected from dividend tax so will take the special dividend in cash to reinvest, either in Tesco or possibly elsewhere. I was thinking of selling some to diversify a bit more anyway before this came about. It's certainly not an assumption but I do still believe, rightly or wrongly that dividend payments per share will be improved after consolidation but time will tell eh? At the end of the day we've all gotta make a decision by 11th/12th based on our own holdings, opinions and comfort with risk.
Thanks for replying. Always good to hear others' thoughts and reasonings and take them on board. Be lucky.
TSCO Investment Bankers who act as their advisors...
Spindler, TSCO Investment Bank are compelled to work in the interests of the company and are regulated. I am sure the out going FCO is experienced enough to understand the advantage and disadvantages of paying a SD to it’s shareholders.
Before the GM investors can choose to stay or sell like yourself and avoid any tax obligations. Some will have their investment isa wrapped. Some may have a very good average and want to see how it plays out.
My point being that selling is not the only option for all invested here. I will review my position post consolidation as the fundamentals change.
The thing is Set4life, the dividend pot will almost certainly NOT stay the same.
There are many variables in play not least 1. The overall company is now smaller 2. profits may be higher or lower depending upon how well/poorly the Asian entity was trading 3. Profit from the sale has to be seen in the light of what was actually paid in the first place for the Asian business. 4. A commitment to pay 50% of profits depends on just how in detail the directors decide to define profit, they may make large provisions for example for additional brexit costs, spoilage of food in containers for example due to delays, higher import costs due to red tape etc - the list is endless.
Thus, I suspect the BOD will think a 4% yield is more than adequate and we will stay at that - just think it's dangerous assumption to believe you are now sharing the same pot between less shares - that pot moves like greased weasel manure I suspect.
Cheers now
Trouble with brokers Leas they always put their interests before anyone else's and it takes wise heads in a company to see right through them and show them the door. At the end of the day I don't see the interests of the owners of the company the shareholders being paramount. A sound company with profits, dividends(proper dividends not the SD) ultimately reflecting in the best share price should be the order of the day and I think they have dropped the ball on positioning things so that the share price reaches it's full potential at all times. and it's way off that by my reckoning and broker forecasts. That is a major fail in my opinion. one of the first wrong steps they have taken since Lewis restored the company. All the best
Spindler you may be right. Don't think this strategy has been thought out in the works canteen though as the BoD's have been enjoying a Costa Coffee. The company would have taken advice from the brokers and I guess with borrowing being so cheap that paying down debt was not seen as the way forward.
I'm sure investors will make the decision to buy or sell based on their average price paid and personal circumstances. Even if the sp remained the same then this would be yielding over 4% for me.
I think I will reserve my opinion on whether or not it was a good strategy to pay a dividend later on in the year. All the very best with your other investments.
Still following this out of interest and an education... I was sorting some notes this weekend from last year..and realise now with hindsight that I had let the Asia sale influence my decisions on Tesco....2.60 mark early last 12 months...dropped and then fell substantially albeit with market crash..picked up 2.48 level in August and then drifted lower....I know noone has a crystal ball but the SD to me has turned out to be a mirage it's not to my mind a SD at all....and now feel comfortable to have jumped out last week in the upper 2.40 range. It's a great company and with or without Asia I saw this at 300p or thereabouts....the SD has just muddied the waters to my mind...this is trading on par with Sbry and I see Tesco as superior in all respects....sbry in the 2 pound range and Tesco in the 3 pound range but this is not where it's at all. I can;t see this till after the dust has settled..made a profit but not what I anticipated. As soon as i heard about the consolidation I didn;t like the idea at all ! Just my observations and own opinions.....All part of the game...I was all over the silver thing but days behind the curve and it's blasted off before I made a move...hey ho. I have been impressed with Tesco moves with booker the pandemic but the SD nah not at all...wrong move in my opinion....pay down debt..buy back shares...even a close to home acquisition but a consolidation and a SD together ...too complicated for no apparent reason that I can see and that's why this hasn't gone in my view circa 300p which is where i saw it and many broker forecasts also.
To some it’s fairly good. My wife holds shares from options she bought over 21 years. She’s a non tax payer and her dividend will be taken in cash. This enables her to take her CGT allowance out as well this tax year.
Great for us because we are at an age where we want to spend rather than save.
The shares have served us well over the years apart from when the divi was cancelled.
quelfromage
As I see it, all else remaining the same..
We'll have less shares, but our future dividend payments will be higher per share and the total dividend payment on an overall par with that paid on our previously held total shares.
ie. We'll have 15/19ths less shares but conversely 19/15ths greater dividend per share making future dividend payment on our total holding roughly unaltered against what it would have been. Eg. A 4% payout becoming 5.06%.
If I were to reinvest my SD I believe I'd have roughly the same number of shares as before but a 25% higher dividend yield going forward
Happy to stand corrected!
If I were holding more then 4000 shares outside an isa wrapper, I would seriously be thinking of selling at this point. I think a lot of amateur investors out there have just focused on the dividend, thinking its a free lunch. Once reality sets in, we could well see a sell off.