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Insider dealing - bring it on. Topping up +£2k as soon as it stops falling. Any bets where the bottom is?
Can someone more learned explain this £15bn Euro Note Programme.
Why are Tesco publishing a prospectus for Notes in one hand and giving shareholders £5bn in the other ?
https://www.lse.co.uk/rns/TSCO/publication-of-base-prospectus-duo8voaurcpph1f.html
After a final late evening trip to my local Tesco store, i meet a few old colleagues who were flat out after a very busy day.
Last week the store broke all previous store sales records and todays sales with 3 hours of trading left is way above the stores expected sales performance at this stage before xmas day.
We spoke about the task of the night team to pull the store back in time for the early morning trade, some job looking around the store.
Life is very difficult and uncertain at the moment and anyone investing is having to keep one eye open at all times, however anyone holding Tesco shares can pretty much sleep easily in my view, so with that good luck and I'll look forward to the trading update and forth coming dividend.
Hi Barchid, leas
Based on the published circular, unless I missed, there was no indication of a share buy back, just the special dividend and consolidation
What a miserable and challenging time all round.
But at least Tesco will be flat out selling the Christmas produce for the eat and drink part and hopefully the January update will offer us share holders belated merriment.
Bruce
I am not a politician either but I do know the difference berween zero tarrifs and even 3% or 5% increase in cost, I also know the difference between a hard currency & a soft one, so, I venture to suggest, does the TSCO management.
being German I am sure they will have it nailed. they are not politicians!!
Your Aldi Lidl point is something I totally agree with.
Food from UK, but hardware/household cleaning is nearly all German, so how competitive will that be next year ?
Online, they are in the kindergarten
barchid
Running costs of the pension fund should be lower to. Still a lot of uncertainty out there. I will also be keen to see how Aldi and Lidl after Brexit if there is a no deal. Although they source quite a bit of fresh produce from the UK, much of their products are produced outside.
Leas
Totally agree with you re TSCO, I can understand investors might be put off with the special divi/possible share buyback scenario, my memory of Vodafone paying a special divi after the Verizon sale made me less than I thought due to the tax the divi attracted and not all my Vod were in ISA/SIPP wrappers. That is not a mistake I intend to replicate in TSCO, but I have been a keen buyer (in wrappers!) recently as I see it to be a lowish risk good yielder with a strong upside potential.
No competitor can come near them for online capacity, imo, and they seem to be soundly managed now, moving in a clearl direction .
GA
Likewise, a very merry Xmas to you your family and loved ones.
Managed to get all my money out of SVS and worked out very well for me as the takeover occurred when the shares were in Admin.
Could have been an expensive lesson but now fully aware of online dealing and the risk with nominee accounts.
Just got the tip of my toes in now with much less stress.
Good luck and stay safe
leas
Hi leas
Happy Xmas to you.
Not seen you since our oil days. Lucky we got out when we did eh! Did you sort your broker in administration situation, hope so.
Safe share here I hope.
Stockboy or GA
Just my opinion and probably wise to ignore but I believe the sp is being held back to enable funds to buy on the cheap before February 11th or certainly drip money in and accumulate. Investors here may have mixed opinions about the dividend, Brexit or market share of the sector but most if not all agree that Covid has been good for supermarkets.
If you look at the 12 month chart, TSCO was circa £2.50 at the start of the pandemic and now struggles to maintain £2.30.
A few weeks ago, supermarkets were reporting strong sales with TSCO being the second best performer with over 10%. The sp from memory dropped a little with it's rivals rising.
I too, like many will be looking forward to the January trading update and then make a decision whether to sell prior to the special dividend or possibly add. Probably an amount equal to the special dividend and preserving my cash.
Hindsight is a wonderful thing!!
For messing up so many Christmas' but at least tesco shareholders will benefit from increased in store sales? I am not saying Xmas should not have been cancelled but it should have been done earlier.
a lot of pensioners depend on dividends often more than interest
Chris
I wouldn't say that it is nonsense. It isn't simply a return of capital, it is a return of capital and profit on the sale of the Asia businesses. It also reduces the burden on the company of financing the pension fund deficit. This is good for future profits and dividend.
Levantic
My understanding of the circular is that £5 billion will be returned to shareholders. It doesn't matter whether you have two shares or one consolidated share, you will receive the same amount.
Think January and February will be fine with these new tier 4 restrictions pushing people to the supermarkets
I'm also unsure of the outcome of this .. I'm hoping for a good Q3 and Christmas statement on 14th January, it should show very good Christmas trading and healthy bank balence, if the price is above 250p then I'll consider selling .. remember we could be in the doldrums in January and February and the share price could slip back to nearly 200p, then the special dividend won't look so special .. only my opinion again ..
Will the share consolidation happen after the ex-special dividend so that it won't affect the number of shares you have that qualify.Also how will the consolidation affect the share price?
I'm bamboozled by all this nonsense of a special dividend.
From what I can make out it's simply a return of capital BUT instead of being able to use to calculate it as a capital loss , the shareholders will instead be liable to pay income tax on the distribution.
So where's the sense on that?
Anyone?
I expect a decrease in sales in January. The alcohol over purchased for Christmas , often with the 25% discount will not be returned to store. A lot of the turkeys booked for this week I expect to be cancelled. You may think , well if that happens, those not meeting up will just buy their own rather than visit. True to some extent, but many were stocking up on readiness for Christmas anyway before the five day pass was announced
Indeed, the amount spent on Alcohol alone will be massive, with all the bars and restaurants closed.
The payback of the business rate relief is now looking a very astute move by the board, to avoid future criticism when the Xmas trading update is published in January.
Hunker down here until covid has passed and we will reap the rewards. People will spend more over next few weeks at Tesco as people won’t be going out again