Firering Strategic Minerals: From explorer to producer. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Sale of Thailand and Malaysia businesses approved by shareholders in May, regulatory approval and completion of sale expected in 2H 2020; to be followed immediately by shareholder meeting to approve the return of capital
https://www.tescoplc.com/news/2020/interim-results-202021/
reduction in share capital
Either way, invest 240k and 50k is coming back to you so not sure what your point is here?
I can't get my head round how a capital repayment would work. I assume the capital isn't coming out of retained earnings or its a normal dividend. So that leaves share account and share premium, which is less than 6bn in total, so no way they'd return 5bn through this.
Is there a tax accountant around?
Anyone thinking of purchasing £240,000 pounds worth of Tesco shares tomorrow so that you can shortly get back £50,000 of your capital, or would you be looking forward to £50,000 income.
gg
''You should treat it as dividend income as that is what it is. ''
As well as an income dividend, capital can be returned via a special dividend (capital dividend)
oops meant to say ....sell before ex dividend
ggplyr...well, I am torn ...I have been hoping there will be a surge into the 50`s before ex divi in Feb....no such luck..so far .
Am hanging on to see what the circular says re consolidation ratio.on 26th Jan .Then it will be decision time.My plan had always been to sell ex dividend .Time will tell.
Nigella- if you think your break even point goes to 2.94 why haven't you sold now at 2.42?
£2.86 target raise from Berenberg today ....little or no effect !!
share consolidations are not liked.check what your new break even will be on the cash invested in Tesco shares, when you have lost 20% of your holding through consolidation. my b/e goes up from £2.35 to £2.94
ggplyr
Fully agree, fundamentals completely different. Of course that will change again after any share consolidation which I think some investors fail to take into consideration.
I doubt you are comparing quite what you think you are comparing, the price of a share of one company vs the price of a share of another company isn't overly comparable. Although their relative movement is which is what you are implying.
Sainsburys has net assets of 7.8bn, it has a market cap of of 5.5bn. if it sold all all its assets and settled all its liabilities then in theory share holders would be better off than they are now.
whereas tescos net assets is 13bn (half of which are intangible), & has a market cap of 24bn.
Looking at this alone implies sainsburys is undervalued vs tesco.
Although tesco has a much better p/e ratio
(analysis only done on full year accounts which are coming up to a year old for both companies)
chris
I think the SD is a significant factor and imo the current trading range is under control and influence of the institutions. These algo trades prevent the sp falling too much thereby keeping a lid on demand. The algo trades also prevent the price rising above the current level so that institutions can load up on the cheap. Over £20m of shares were bought yesterday and I would be surprised if the same is not occurring today.
I also think SBRY notice of intent to sell its bank to Nationwide is seen as a positive by the market and allow the company to be more focused on its core business.
Not forgetting Argos that is now fully established in its stores with costs savings going forward with high street store closures.
Shore Capital has also been very vocal on pushing forward SBRY to institutions despite director sells last year.
If you have the luxury of time later this afternoon then have a look at the trades reported at 5.30pm. The current tight trading range makes it easier to determine whether or not they are buys or sells.
All my opinion......
Many companies will issue special dividends, some almost yearly. These are treated as ordinary dividends. With the sale of the Asia businesses, there are two elements. The first is the return of the asset value and the second is the profit made on the sale. One is simply a return of your original money (asset value), the second is the balance (the profit).
I have looked at the circular but can't remember seeing anything about tax implications. I would certainly expect the profit element to be subject to tax. I have surfed the web extensively and can't find anything UK based which is sensible, not even on HMRC web site. I have also written to various TSCO Directors regarding this.
Noticed that Sbry share price surpassed Tsco just now so did a comparison chart of the two . Over the past year SBRY has soared vs TSCO. longer term TSCO has outstripped but the huge underperformance in Tsco warrants consideration surely?
It cannot just be market sentiment after all tesco has boomed allegedly during the pandemic ... so not sure why the disconnect.. any ideas please
I believe it comes down to how the company categorises it. If they are conducting a return of capital this is different to a dividend. if it's called a dividend, it's a dividend and should be treated as..... you guessed it....
Just my simple take on it. Not an accountant, or tax advisor.
Regardless of whether you consider investing gambling.
Jaff asked - profits from gambling are tax free?
Answer - for you as an individual yes, if you win big on the horses through William hill or any bookie yes, if you win the national lotto* yes.
However - for William hill and any other bookie they not only pay corporation tax they also pay a gambling levy which is an additional tax on profits between 15-50% depending on the type of gaming. So HMRC still get their share. If the HMRC didnt do this then you would be able to win more because the likes of william hill would not need to absorb this cost so could decrease the spreads on the bets.
In summary - gambling is taxed but you dont notice it, its effectively taxed as source like your pay slip. if it wasn't taxed then you would be able to win £1.15m on the lotto for 5 numbers plus the bonus rather than £1m
*(Although I believe if you win on one of those scratch cards that pay 10k for life or anything for life that actually is classes as income because its a recurring payment)
It would appear that way Spindler, most occurrences priced in as forecasted last year, Brexit, Biden Lockdown etc
The trading range seems to be incredibly narrow of late(is there no edit function here ?) ...sign of solid support ? City Boys and Institutions on the brink ?
The trading range seems to be incredibly narrow of rate ...sign of solid support ? City Boys and Institutions on the brink ?
Tesco made the sale not you. Tesco will treat it as a business disposal for tax purposes. You are an investor. You should treat it as dividend income as that is what it is. Do what ever you fancy on your tax return. Good luck if you get caught, but I'd take advice, sounds like tax evasion to me. If you haven't made use of Isa wrappers then do so. If you have, well you are probably sufficiently wealthy, probably not worth the risk of engaging in tax evasion.
bbrinkw...your take on it all is just what I have come to the conclusion of ......My problem with all this , is basically that after consolidation my reduced number of shares divided into the cash I invested has a much higher break even ( up from 2.35 a share to 2.94 a share .!! which means I might have to wait a long time to move out and into something else .whilst I think Tesco is a good share for now , I see weakness ahead when lockdown ends and the glorious turnover subsides.
BB, LTI
Well that is for you to decide how you wish to treat your money . If you have not protected it in the months since you first heard about the circular then that really is your problem.
LTI , you purport to be a knowledgeable investor in the other place so I assume that your comments are simply mischief making for whatever reason.
how the proceeds from the sale of an asset can be classed as income.
Just imagine investing £10,000 in a company and then a couple of weeks later the company sell 50% of their assets which they then return to shareholders. You would be getting back £5,000 of the capital that you have just invested. How could this possibly be classed as income for tax purposes.
I will be classing the return of money from the Asia asset sale as a return of some of my capital that I purchased Tesco assets with in the first place.