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Equilibrium_TBC,
Where are you seeing £3 in the last year? Using the Charts button above, with the timescale set at 2 years, the highest it's been in the last year or so is about £2-58 in Dec 2019 / Jan 2020. That was a result of a dramatic rise up which was probably the result of their RNS announcement of 9 Dec 2019 "Statement regarding Asia". That's probably the bulk of your 51p added value. And those prices were, of course, before the effects the COVID-19 pandemic had on the markets starting a couple of months later.
Mike.
Yes, you'll get special dividend based on your original holding. But to get your holding back up to where it was you'll need to reinvest your special dividend. Just a fair balance sheet shuffle. But if there is a significant uplift in SP by time you get your cash you'll be worse off. Plus trading expenses. On the whole, it will make the company more efficient and hopefully more inevitable (but just hope SP stays down before feeling compelled to buy back to original level). Dividend tax is annoying but hope that will cancel out as we near £3 and beyond.
ec ryder ah yes silly me got it now
Longtimeinvestor - looking at the sp over the last few years, when was the 51p added in value to it? This time last year the SP was higher at around the £3 mark. Surely if the dividend value was added we should have been up around the £3.50 mark before today's action leaving it at £3 again now. I'd expect that this value at present is low and will be re-rated especially with dividends going back into buying more shares. A £2.80 mark surely is where we should be in the next few weeks or so?
Spindler
you are probably looking at the wrong fact sheet on Hargreaves. There are two - one for the old nominal value at 5p and another for the new post consolidation nominal value at 6p plus.
Well I did it in my HL SIPP ... just a few to see if it worked. Anyway this site lists >10,000 trades today so it must be specific to your account ??
just loked again shows nothing just a number to call
So if we put the sour grapes behind us including mine, i sold few week ago on the rns around the BS SD. Where do we see this SP going ? close to or £3 or smidgen above £3 ? I think it;s got the legs on it ? Other views ?
Spindler, you can now as I just did
at least not online
Can't even buy today on HL currently
as we speak.....! (All things being equal) As for reinvestment of SD in Tesco,i a buyback/consolidation is effectively Tesco compelling shareholders to choose Tesco as the preferred choice company for reinvesting the proceeds to maintain their pre SD/ consolidation value of Tesco stock. You could reinvest the SD proceeds in Unilever at the moment and possibly be better off.
Re Divi tax : If youre in an ISA or SIPP you will not get taxed. Neither will you if you are a non tax payer such as say a pensioner not liable for basic rate tav, but I guess those are few and far berween lol
Roll on final results and dividend announcment.
You’ve hit the nail on the head. Future shareholders will benefit from this sale at the expense of previous shareholders. We would have been better selling last week and buying today.
Lti
Many are ignoring the improved fundamentals now that there has been this consolidation. In my opinion many investors would have been happier if the company embarked on a share buyback strategy with the sale of asset money. Not realising that they would be buying at a range much higher than it is today.
The company has reduced liquidity, improved gearing, re negotiated loan rates, reduced pension costs whilst adapting to the pandemic and pressures of online orders.
Many new posters appearing last week and this that are disappointed that they didn’t get a free lunch.
Hopefully traders drop off one by one being replaced with investors who see value in uncertain times.
Lti
Many are ignoring the improved fundamentals now that there has been this consolidation. In my opinion many investors would have been happier if the company embarked on a share buyback strategy with the sale of asset money. Not realising that they would be buying at a range much higher than it is today.
The company has reduced liquidity, improved gearing, re negotiated loan rates, reduced pension costs whilst adapting to the pandemic and pressures of online orders.
Many new posters appearing last week and this that are disappointed that they didn’t get a free lunch.
Hopefully traders drop off one by one being replaced with investors who see value in uncertain times.
Prag, Fully Agree the 'new' or fresh buyers shall see the benefit off the added 'pension' contributions.
Totally agree Rosewell.
The lack of knowledge is quite worrying and therefore causing a lot of unnecessary confusion.
The high vote percentage should tell all that investors will not be losing out, but then again they all probably took the time to read and understand what they were voting for.
Looking forward for a sustained increase from now, on the back of a much healthier company and with the strong trading we are now seeing.
All good, so good luck.
Prag',
That sounds good to me my mate!! :) :)
Nige
I’m going to offer up an opinion here - might be subject to a bit of debate...
Tesco have made significant improvements to balance sheet, pension deficit etc through the sale so I personally expect to see the current SP rise by 7-10% by mid March off the back of that. If say 50% of people reinvest their SD on 28/02, I would expect this to push the SP up a further 5% by say end of March. All of this against the backdrop of an improving Covid situation means that this will only go north. I personally think that the SD has not been all bad. You currently own the same percentage of the company (in a smaller number of shares) and have the option to buy more from 28/02 and in all likelihood at a preferential rate with minimal fees. Worst case, if you do nothing you’ll end up a good 15% up over the coming months anyway as the market understands and appropriately positions the SP???
1308
''why are people not accepting that this SD has been of NO benefit to the shareholders? ;;
ffs when is this nonsense going to end.
The benefit to shareholders was when the Asian assets were sold and announced what was to become of the proceeds. The benefit has been baked into the market cap of Tesco since.
Anyone buying Friday expecting to be given 51p of money that did not already belong to them, would be amongst the most stupid people around.
LTI
I totally agree [ choke :-) ]. I have lived with this special dividend for almost a year and have explained to colleagues directly and on this and other boards. I can honestly say that most of my colleagues have a greater understanding of this investment than many of the posters on this board.
Tig
''All in all we haven't lost out but we haven't gained therefore it's been a complete waste of time ''
PLEASE stop this nonsense.
Did anyone buying recently really expect to be given 51p per share from what they did not own.
Investors ALREADY owned the 51p sitting on the Tesco balance sheet.
The 51p will no longer be on their balance sheet but in your back pocket.
Are we going to get every time an xd date comes along
''''All in all we haven't lost out but we haven't gained therefore it's been a complete waste of time ''
Am I to expect a similar message in MAY?
I am astonished with the volume of inaccurate and misunderstood posts on this board. Absolutely astonished.
The initial RNS was published on 9th March 2020, almost ONE YEAR AGO. It has been discussed most days since then.
The prospectus contained all of the information then in order for you to read, digest, understand. Huge numbers of posters in the last few days are acting as if this has come out of the blue. Absolutely everything you needed to know was in the RNS and you couldn't be bothered to look and now you are complaining.
And you call yourself investors? Really!
241 minus 51 equals 190
Think most understand how dividends work. The whole idea sold was we would get a gain from the sale. In reality, no such gain is apparent. Where has the money gone?