Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. 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.
As per my earlier posts below, after a night sleeping on it, i still cannot see the benefit of TSCO giving with one hand and taking with the other. The special divi is effectively wiped out by the 15/19 reduction. What is it I am not seeing?? Seems most believe that selling the share rather than taking the special divi is a btter option than holding....... surely thats not what TSCO Board wanted to achieve?????
Simples. If you want to continue owning a bit of TSCO then sell now and buy it back in an ISA. No tax at all. As mine are already in an ISA no problem for me and I will definitely be staying to get my divvi on Feb 15th.
CyCoXX
lots of chatter of private investors selling yesterday when the sp was 2.38. As I type the sp is 2.47. There are quite a few trading days left before the 11th Feb so I would sit tight and wait. Not many companies out there at the moment that offer some protection in these turbulent times unless you buy back into the same sector.
Nice rise this morning and this has prompted me to sell my holding which I have held for ages. Well done TESCO for the profit.
Assuming many will be jumping onboard before this goes ex-divident.
Picking up today, although I personally expected well over 250p.
I'm guessing circa 260p.
I'm holding for dividend and medium term.
GLA
CyCoXXX Yes this is a rotten deal - many will get no gain apart from some cash thay maybe taxable? The board have sold us all a pup. yes spending the money on a buyback over time would have helped us all. I hold Tesco for it's decent dividend but am considering selling. To be honest not sure what to do as Tesco is my biggest holding? Any advice anyone?
As an investor in this share pre-2014 (£3+ per share), I can only feel sorry for the rotten deal long time shareholders are facing here. Definitely wonder why share buybacks were not proposed instead of this scheme, surely this will affect management holdings as well, seems counter-intuitive to me. Any thought on this would be appreciated! Probable cause to sell and move elsewhere sadly - Cy
Hi prussell1963,
Thanks, that's a very clear explanation, and I think you were lucky to get in at 222p if that was recent. Your holding is a similar size to mine so a similar dilemma. The big difference is unless the market crashes tomorrow morning you're already sitting on a significant paper profit which you could get by selling immediately with no capital gains tax to pay unless you're right up to the limit (threshold) with other share sale profits this year. In my case, my most recent purchase, at about 228p, was only about a seventh of my total holding, whereas the vast majority were bought at over 320p back in 2012 so if I sold now I'd still make a large capital loss of over £2k which is absolutely no use to me unless I have gains elsewhere to offset it against. As you say, this share stuff isn't easy - I've been doing it over 20 years now (self-taught) and the more I think I know, the more I realise I don't know. My big mistake with Tesco (and the other supermarkets) was buying them in bulk back in 2011/2012 without analysing their "financials" properly, just because I thought they were "cheap" compared to the old peak which was (if I remember rightly) over £4 a share. Plus, the German discounters came along!
Good luck, whatever you decide!
Mike.
Cy
You are referring to dividend INCOME
The £2000~ annual dividend tax free limit outside of ISAs, aka just a regular invest account as opposed to an ISA/SIPP - tax free for dividends
Pro
''if you are outside an isa you are disadvantaged by taxation, potentially.''
What taxation?
definitely feel a bit screwed over by the announcement
decided to hold unless we get over 260
tesco certainly going with their slogan “every little helps”
Nice dividend. Good company.
I’d concede that yes. However, this all seems a complete charade tbh and somewhat disappointing. Fact is if you are outside an isa you are disadvantaged by taxation, potentially. If you buy above 240 and hold for the divi you will be out of pocket. Buying below 240 and holding for divi could well be worthwhile. Buying for a potential short term gain in sp and selling before the divi is another option but a gamble as who knows what it’s going to do and when the mass pre divi sell off would be.....all in all, too many ifs and buts, I’m out as a result but will watch in terms of sheer curiosity.......might change a quick trade if here’s any momentum before divi.
Sorry MikeM14, was rushing my numbers as the boss was shouting that her washing up was more important. Yes, agree, with current 2550 holding this reverts to 2013 "new" shares. My basic maths , with just enough room left on the fag pack is, my original purchase was 2550 shares at 222p (inc dealing costs) total £5,660. Thats the number i need to beat for the specdivi to be interesting, So, if i start with £5660, deduct £1300 specdivi = £4360 divid again by 2013 new shares = 217p per share to stand still. So with a SP profit of difference between current price 240p and 217p = 23p per share x 2013 = £463.
The inital euphoria of getting 51p x 2550 and maintaining 2550 shares has now waned considerably based on above. If share price stays at 240p and I take the specdivi my actual "profit is approx £462- dealing cost = £450. My dilema is whether to take 2550 shares x 243p (today finish I think) = £6196 - initial £5660 spend = £536 profit minus dealing = £520. So the specdivi has lost its apeal, UNLESS I believe that I can bank the divi and then see SP increase over 250-275p range which at 275p would see a £1175 profit, but still lower than the £1300 specidivi (bonus!) i thought i was going to bank. Not easy this share buying lark.... thank God that nice Mr Terry Smith takes care of most of my investments!!
No worries Gary . By the way it did drop to 2.38p today. I think if the market saw it as a bad decision for TSCO to return cash to shareholders then today they had the perfect opportunity to drop the sp in line with other ftse companies.
Prospecting
Surely with the spread and dealing charge would it really be worth it? Any gains is going to charity so I won’t be too bothered.
That’s true, and an important point if you don’t have a multiple of 19 you lose out. So either buy to get a multiple of 19 or bail before the consolidation. DYOR and calculations of course. Sold at close today, just too many unknowns for me. Happy with profit.
Thanks leas I have read your message on the other board & value your opinion. It also seems that HL are tipping this share although I'm unsure whether this is a good or bad thing based on their history.
prussell1963,
I don't follow some of your maths. If you have 2550 current shares, and it's a 15 for 19 consolidation, then my calculation suggests you'll instead have 2,013 "new" shares. Where did you get 1,974 shares from?
With the 50.93p special dividend, on your current shares, that's indeed £1,298-71 (or "approx £1,300" as you say).
Sorry if I've missed something.
Mike.
So are TSCO using the specdivi to stop a major sell off after banking it?. Looking at IAPR calcs below which are similar to my own, it seems clear that the specdivi benefit is actually swallowed up by the reduction in shares for most. I purchased 2550 shares at total cost of £5620 (220p per share) based on my revised holding I will see 1974 shares plus approx £1300 specdiv which at current price of 240p = £4740 + 1300 = £6037 (divded by 1974 = 304p per share value to get my £6k back.
this now begs the question is it worth holding for the divi and lower share holding or sell at highest point, giving up the specdivi and be happy with the 20p per share I have made?? Do i think TSCO will ramp quickly to £3 per share to make effectively re-instate the sepcdivi value....... not sure.....
Seems that TSCO have given with one hand and taken with the other !!!
Totally. I imagine the price will hover around here. Anybody buying above 240 and holding for the divi will lose, plain and simple. Dips below 240 however are attractive opportunities......
Gary
You have a cast iron guarantee that you will return a profit. If that village idiot on the LLOY bb advises you to invest there because TSCO are overvalued then based on his usual history of getting things wrong you can sleep easily.
Then again a broken clock tells the correct time twice a day. Good luck in any case wherever you choose to invest your hard earned cash.
I am not a holder of TSCO although I hope to be fairly soon. Thanks to all those that have posted today to clarify the position on the so called special dividend, with opinions that less than £2.40 is the price to buy at. I never put more than £5K into any one single share (I do funds but not shares) so for me if it gets below 2.40 by the Feb cut off date it'll be 1995 shares being brought (7 x 285). GLA
8 billion shares left after consolidation snap em up now while they are cheap.