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I’ve bought in this week. From what I can work out, I am kind of in agreement with emprex. Taking the SD into account, and consolidation, looks like a decent long term hold for me. I think I will reinvest the SD, then put away and forget.
as a small holder here of the share,s , assuming £2.46 and dividend priced in, that would make a share price of £1.95 ish ex div ignoring future price consolidation , on that basis it puts the share price at below the covid lows last march or am I missing something , this would make the shares very undervalued
Stormer, the very recent share consolidation for AML has worked well, the value of my investment there is higher than before it happened. The last few days for AML have been bumpy but still my investment is showing 100% gain. There is a gambling element to TSCO which gave rise to me buying yesterday. In the coming week I may well sell for a 10% profit if its offered. JJ
Return of capital by scheme of arrangement when they sold their stake in Verizon and share consolidation.
It was like giving you money with hand and taking it away with the other.
Several years ago I got a special dividend and share consolidation from Vodafone and basically if I remember correctly it nullified the special dividend and didn't prevent the SP dropping long term only short term.
Hi guys, I’m not invested here atm, I was just reading about the upcoming special dividend and share consolidation. Struggling to see how you can’t benefit / profit from this ?
I love your take on the accounting scandal , that saw our Tesco share price halve in value . Perhaps it should be taken to the West End stage when Covid allows people to go out and mix again . Might just knock Mamma Mia off top spot , and could go on for years like The Mousetrap. The baskets got away with it , and the poor long suffering shareholders have been well and truly shafted . If Walmart are looking at us with a view to taking over , I for one would welcome it and vote for it.
Buffet wouldn't even do a stock split on Berkshire let alone a consolidation accompanied by an SD in name only
Very Interesting post...it had occurred to me this so called SD was akin to previous shennanigans enough for me to bail. It certainly seems out of place with the way things have been handled to date since the new broom, that was a major concern
*before* the accounting scandal broke (just before "Drastic Dave" came in)....
Hmmm! my memory of any alleged scandal was it halved the share price from which it never recovered. in my head what happened but shoulda happened was not one of the Board of top management was fined or jailed nor fired .
So reading the script from an episode of criminal minds or TV drama ...
Act I .the case goes to the courts and the prosecution public defenders / fraud squad / or the regulators lose or abandon taking the case all the way because "basically lads , it was just an accounting practice of booking profits into an earlier period ". the general gist was apparently none of us mortals would be able to understand what actually was lost. no one had benefitted and it was victimless - no smoking gun? no body ?
Act II - But as per, it seems that as usual the shareholders were left to carry the can and to bear the fines. Enter the new bush - who idiotically holds up his hands up and just paid a hefty fine unnecessarily. Easy peasy guv... it wsn;'t his money and how hard can it be to sign a cheque over thanks to it being funded by the innocent shareholders. in return we'll cancel their dividends indefinitely
Act III
Naturally this precipitous action disgusts the likes of the Warren Buffetts and other market movers who watched on and just couldn't believe the stupidity of the collective Board to rollover and wondered about their sanity and who was giving them this bad advice.
another set of auditors found it had been going on for year and yet nobody thought it worth a mention in the audit report or in the notes to the accounts over those years. Strange isn;t it that the signing accountants didnt have to pay any fine? but that's a small detail surely ?
Act IV
Meanwhile the PR people doubled their efforts to ensure that the new boy and the others perps were all some sort of heros of the hour when the truth is all they did was undermine TSCO and made it a stock to avoid in the future ...
POst Script
Heevy and the other 3 go on to make further personal fortunes and did not return a single penny of their inflated bonuses.
That was my understanding of what happens when the top management brand themselves as heros .
Epilogue
the canadians look around and find a great plc and make a bid and replace the management and send the germans packing home (again)
Even this SD is another instance of accounting trickery so it seems like nothing really much has changed- has it ?
of course the institutions love it because they need liquidity to pay the annuitants and this is like manna. What I cant figure is why the stock isn't rising closer to £3 - maybe next week, they'll all pile in .
ANY of the above is all pure conjecture and no offence intended ...life's all a play
Quizzer. I think you had best read he RNS. A simplified answer lies in an email publishe by a colleague yesterday
Yes I agree with everything you are stating , but Tesco are still the biggest , and seem to have their act together , so maybe my new expert investor has more knowledge than you and me , time will tell . I hope I meet him again . We live in interesting times ?
Cereus,
The £4-68 would have been back around 2010 (I started buying-in in 2011 when it was in the £3's). I'm not sure how relevant that price is to today's situation, as it was *before* the accounting scandal broke (just before "Drastic Dave" came in, in about 2014), and it was before 10 years' worth of the "onwards and upwards" march of the German discounters, eroding Tesco's UK market share, etc.
Mike.
Less liquidity, improved EPS. Should be more appealing to institutions looking at covering their annuity obligations as other sectors will be under pressure to maintain them.
What is consensus with regards to the impact of the share consolidation?
15 FOR 19 hmm
All the best mags :)
I sold at 247p, one reason was to get my funds into an ISA, I'll be keeping an eye on this one up to and after 11th, I doubt this will go below 240 up to the 11th, if it does I'm back in ..
CEREUS
From memory Walmart wanted to team up with SBRY but the M&A blocked it.
The Americans struggled with Asda as they don’t like operating on the tight UK margins.
Going forward, what will benefit TSCO will be the buyout of Asda by the brothers that own EU garages. Already their syndicate is planning to sell off Asda Petrol Garages, the logistics business supplying stores and I would guess giving up some of their store space to the likes of subway and costa. This seems to be their business model of their success which will probably lead to them selling off the food retail.
Just my thoughts but can see Asda losing market share to the other ‘big 3’
Never mind about flying pigs, the guy who I was talking to whilst doing research into a Company on an industrial estate yesterday , says it was not so long ago that the shares were trading at £4.68 , I checked and he is right . So the Walmart tip might not be so stupid . Tesco at just over half price ?
this will happen 6pm on Friday the 12th Feb
If I hold shares on the 11th but sell before the 15th will I still get the sd.Im sure I read the consolidation doesn't take place till the 15th.maybe I'm wrong
I see Schroders are reducing significantly in MRW. However, unless I have missed something I have not seen any RNS announcements for TSCO. All the significant shareholders including Black Rock, Norges and Schroders have maintained their pre Asia holdings.
I know in the short term the SD is an unnecessary complication but why has there not been any significant reduction in insti holdings.
Morning Crisp
As long as you're on the share register on the 11th February. Just be aware of the share consolidation and possible tax implications. Perhaps read through the bb and get up to speed before deciding.
Can I still qualify for the SD if I buy in over the next few days, is there a cut off point?