Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Big giant just gently strolling on great to see.
Webba1
The copy and paste paragraph re buybacks was, from memory, the same as the one published recently in Motley Fool. It is just an orchestrated move o drum up support for a failed policy. There has been no indication, not even a hint, of a buyback scheme. The money is earmarked and has been voted upon by shareholders. Th BoD are unable to change that.
Ocado do very well.
A little bit difficult to make comparisons. The online delivery business is very much different to 2014 and has grown to meet demand. Also with Covid you could argue that many customers that were happy to drive to their local store will in the future continue with a delivery service.
Shopping trends have also changed which the Co Op seeing a shift to daily shops. TSCO are positioned perfectly for this with small daily shops being supported with a weekly delivery.
I also think Amazon partnering up with Morrison’s is a good indicator on the future of food retail.
That said, as you correctly state it is hard to find figures on the profitability or otherwise of the delivery service.
* Tesco only once made a comment on the profitability of home delivery
In store sales subsidise home delivery.
Now that is ok(ish) except for one fact - home delivery is growing
while instore sales are on a long term trend downwards.
Tesco only once made a comment on the profitability of home retail,
from memory back in 2014 when they categorically stated it was profitable.
Around 2014 coincided with the peak margin on Tesco UK food retail at
approx 6.3%, a margin now they could now only dream about.
To the best of my knowledge no comment has been made since on the
profitability, or otherwise of home delivery since.
Why?.
Panderman
I am also bemused as to the lack of follow through today.
It could be net funds avoiding the large divi but I don't really think that is too likely as they have had months to get ready for this special dividend moment, nonetheless I intend adding again today.
Can't understand this, Tesco should be flying today, what is holding it back? Special dividend coming, brexit out of the way, everybody in the country buying at Tescos at the moment.
Likewise, not seen any news from TSCO of a buyback scheme. The money from the sale of the Asian business has already been earmarked for the pension and special dividend. The GM in February is a formality IMO.
Hi Webba3
I also have not seen anyone mention a share buyback scheme for Tescos. That quote from proactive doesn't mention a buyback policy.
Any chance you could post or share a link to an article or news item that mentions this ?
thanks for views - as for the share buyback, this is referenced in pretty much every article ive seen on this.
this from proactive investors (first link i used)
“Accordingly, with this news and the prospects of the special dividend, share consolidation and pension deficit pay down plus onward progression, we welcome the combined developments and reiterate our 'buy' recommendation on what we deem to be lowly valued Tesco's shares,”
i agree, nothing finalised and i'm sure shareholders if given the chance will vote for cash!
Hi leas,
Yes, I can't ever imagine a time without physical shops and stores. Home deliveries will become greener over time and I can see a hybrid market place where people go in store for fresh foods with the rest being delivered
Rosewall
Maybe this is the area that they will need to focus on and invest. Obviously online sales are growing, particularly with the younger generation but there will always be a demand for shops and stores.
Stores always seem busy at weekends and bank holidays as I’m sure people still like the experience of selecting their goods and putting it into their trolley’s.
Hopefully TSCO will be good at all customer trends.
Let’s see if the other big 3 can keep pace. I have my doubts, particularly now Asda has been sold off. Their assets will be sold off bit by bit with little investment.
Leas
I would have to agree with you about the quality of service provided by Tesco colleagues, no doubt about it. What I am saying though is, if the trend towards online delivery continues, it will be an uphill struggle to take market share because of resource constraints. Tesco Now looks like a good opportunity, a growth area. Maybe rebadge Deliveroo.
Leas
I would have to agree with you about the quality of service provided by Tesco colleagues, no doubt about it. What I am saying though is, if the trend towards online delivery continues, it will be an uphill struggle to take market share because of resource constraints. Tesco Now looks like a good opportunity, a growth area. Maybe rebadge Deliveroo.
John Allan, no change and no significant price rises. As we were.....
https://www.msn.com/en-gb/money/other/tesco-boss-explains-what-the-brexit-deal-means-for-food-prices-in-supermarkets/ar-BB1chwbL?ocid=msedgntp
Rosewall
Market share in relation to it's competitors when the pandemic is in the past. Surely their online delivery service has stood out head and shoulders above the others. A vulnerable friend of mine uses 3 and say's TSCO beats them all hands down. More slots available, arrive on or around allocated time and rarely have missed items.
As for UFC's TSCO will adapt accordingly. I'm sure Amazon would like to rethink their relationship with MRW.
Agree Chelwood.
Just finished reading Terry Smiths book Investing for Growth and so now feel a fully qualified commentator on all things financial (lol) . However, one point he continues to make, and whatever your views you cannt but agree he knows what he's doing (with £22Bn of others money!), share buy backs should only be considered IF there is no better use for the available money. He holds that many buy backs are a sign of un-imaginative management peddling the view that buy backs take shares off the market so improving the yield,and price of the remaining shares on the market. If TSCO are using mone yo pay down debt / pension shortfall and their is no better use of the cash then fine, but in such lean dividend times, a decent windfall special would be most welcome. So we gain on one hand, but could he be correct and TSCO seniors dont actually have an imaginative use for the cash to improve the business long terms and hence sp growth?? Answers to eltel@fundsmith.
My opinion is if you do not need the money,sit tight with these shares as they are solid,respective of the share price
Hi Leas,
Unfortunately, in the short term, there won't be a significant gain in market share for online shopping. The stores are at capacity and are restrained by resources, in particular, drivers. Over the next three years, there will be 30 new UFCs and these certainly hold out the real possibility of taking share from competitors.
Dizzy heights indeed. I reckon £2.40+ by close IF we secure a favourable brexit deal
The longer covid drags on the more sp appreciation we will see. Best wishes for a happy and healthy new year Leas. Hope everyone on LSE stays well
Dizzy heights of £2.30 again. Will this be reined in for the lunchtime close? Sold the rest of my LLOY shares this morning with a tidy profit and bought a few more here. Sadly not Isa wrapped. Looking like most of England will be in tier 4 after the New Year and TSCO likely to be one of the few retailers making good money.
Going forward, costs should be down running the Pension Fund and I would hope that it's online delivery will have gained greater market share. Booker also doing very well and exceeding expectations. A deal in EU trade will also help but imo the company would have had that covered with alternative supply lines.
All looking very positive. All LSE members have a great Christmas and New Year despite this awful pandemic and sincerely hope all stay safe, particularly your family and loved ones.
Sold my Hyve and Cine shares to come over here. Who would have thought Tesco could be the next covid and brexit play....lol
I think Tesco could add 30-50% in value inc div over next 3-6 months. While the attraction of 100% upside on Cine and Hyve was exciting the prospect of covid dragging on for the whole of 2021 renders both close to bankruptcy. Need to be able to sleep at night...
I agree. Likely a dividend. Retail investors like pensioners looking for income AND pension funds likely to flock here on the news when press coverage increases