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Longtimeinvestor
The lemmings I refer to in this instance were those raising the price, all buying due to broker recommends and directors deal news. Allowing me to cash out and take profits on Friday, earlier than expected. The director deals and the broker recommends do nothing to cover the sins of BOD regards needlessly driving the value of the company down by many billions, especially when given the perfect opportunity to raise the worth of the company by billions. It's elementary that to fund takeovers and/or growth of a company it needs a high powered valuation. Instead they chose to keep the debt and line their pockets. Simple stuff showing that the BOD are not acting in the company or shareholders best interests regarding value.
Good luck with your Tesco investment.
@checkricky "OHHH unless not invested and just watching on the fence but have a lot for negative cr@p to harp on about I think they call them a 42 carat plonker ......
Not sure why you need to resort to being abusive ?
this is a discussion board not a safe space where only positivity will be tolerated. This is how those who come here learn from healthy discussion including myself.
I stand by all that I have posted, Tesco has 8 billion in debt obligations it didn't need to be carrying.
No point posting broker estimates that have been wholly positive going back 2 years and very much on the high side when they never have come to fruition. Tesco is in the early 230p range on a reduced share float. incredible !
I had 2 shares going back 2 years that I saw as great investments, Tesco was one. THe SD caught my eye then when it was not as it appeared i thought surely they will clear the debt. The debt was always in my rear view mirror on TSCO as was the Pension deficit. Well they sorted one and not the other and for the most opaque reasons did a return of capital under the label of a Special Dividend.
This in my view has cost holders a lot of upside. Oh water under the bridge some say, no it isnt; because the decision makers are steering this company. They need to be held to task and not given a free pass by shareholders of which i was one until recently and potentially may be again
To see a possible re-investment case i have to consider the upside. and what weighs on my mind are the BoD, and the 8 billion debt obligations. At least the pension has had a chunk of change.
nbc
''Took advantage of the lemming investors ''
if that were the case then you would have sold all of your shares.
If it reaches 240+ plus before xd then investors who bought today would not have been lemmings would they?
Leas
Good point re the institutions who are not gross funds could well have lightened up before the SXD.
Silence (from some) is golden, indeed !
End of day was great. Took advantage of the lemming investors buying after the director deals and sold half my holdings at 231, much earlier than I could have hoped.
As a defensive stock through the pandemic Tesco was OK.
Going into recovery, the sins of the BOD have been laid bare and maybe the 6p divi and prospect of 20% growth might take this to 240 plus before ex-div at which point I'll sell the rest.
Cheers all and GL.
barchid
No coincidence that the negative posters who are not invested stopped making any comments as the market closed.
Like I posted earlier, if this is such a poor investment then why have the algo trades. Who benefits?
Another observation that has been overlooked. Many institutions would have reduced prior to SXD in order to reduce their tax liability. Many of those will have annuity obligations to meet.
Most certainly the prospect of the next 6 months for TSCO is looking encouraging, dare I say rosy ?
Closing just shy of 232p for the week certainly puts a smile on my face.
So we finish at the price it was at the close of play Tuesday. Priceless, focus was on the ‘one of costs’ of the pandemic. Booker up and running now and the share of online sales increased significantly. Staycations and home entertainment likely to be high due to difficulty in hols abroad.
Money from the impatient to the patient :)
Ok so the share consolidation was crap we all agree but that's the past.Now looking to the future a lot of investors will be looking for good safe investments to spend their new 20,000 Isa allowance.I can imagine a lot of them sifting through share data this weekend looking for a safe bet with a dividend going on the cheap. Tesco fits the bill and it will rise steadily up to the exdivi day and if bought at this price will probably still be lower than what it falls to. I expect this to be 3 pound by the time it gets to exdivi by then hospitality will be open and the economy in good recovery as is already happening see the ftse flying up today.
That's a sure sign of confidence! It has been a good day all round. Enjoy!
https://www.lse.co.uk/rns/TSCO/directorpdmr-shareholding-xg0c1fxyx3jb6dc.html
"280p to 290p range will be here soon :)"
Well I guess it depends on how much you have invested in TESCO it my even be this year if it's the right amount....
OHHH unless not invested and just watching on the fence but have a lot for negative cr@p to harp on about I think they call them a 42 carat plonker ......
BROKER RATINGS: upgrades from two brokers
CREDIT SUISSE: RAISES TESCO PRICE TARGET TO 283 (280) PENCE "OUTPERFORM"
BARCLAYS: REITERATES TESCO TARGET TO PRICE OF 290p "OVERWEIGHT" .
Dates to keep in mind
20 May 2021: Ex-dividend date
21 May 2021: Record date
11 June 2021: Dividend Reinvestment Plan Election date
2 July 2021: Dividend payable
280p to 290p range will be here soon :) as I was saying
"280p to 290p range will be here soon :)"
This time next year we will be millionaire Rodney! (said in a david jason del trotter voice)
I kind of mentally noted a lot of posters buy in prices and share allocations including thise with cheap options. Let's do some maths shall we....a real conservative example 20000 " 2.25 45k cost....if the share price had risen to say 3.25 if the debt had been expunged which i think it would have...that's 20 grand that soul missed out on. Many much lower buy in prices and much larger holdings but i figure 3.25 post asia sales was doable easily. So a lot of folk have had chunky opportunity gains cancelled. Yeah may still happen but it doesnt look like it does it ?
I don't understand why they did this and i sold for that reason before the BS SD. I made a profit but i reckon i could have made a tad under 40k more and that was when i decidced Ken Murphy aint my CEO !!!!
I think he's a bad hire and I know full well Lewis may well have had a hand in this as well or been the whip hand.
The first decision i head Ken was confirmed to make was to pay bacck the rate relief...way to go Ken..way to go...big boy pants huh ?
Well better day today at last, I was thinking what the hell has been going on with Tesco, all week this has been failing. I hope the share price will sort itself out now after a week of selling, was not expecting the drop yesterday but the share price had to start rising at some point and I hope todays rise will hold into the close. And as we all know from some our posters on here we have the broker upgrades and the 5.95p Divi to keep us going keep the eyes on the prize and don't be distracted by some negative posters who are hell bent of try to distort the share price to get in cheaper. The results are good as far as the covid environment goes things will only get better
BROKER RATINGS: upgrades from two brokers
CREDIT SUISSE: RAISES TESCO PRICE TARGET TO 283 (280) PENCE "OUTPERFORM"
BARCLAYS: REITERATES TESCO TARGET TO PRICE OF 290p "OVERWEIGHT" .
Dates to keep in mind
20 May 2021: Ex-dividend date
21 May 2021: Record date
11 June 2021: Dividend Reinvestment Plan Election date
2 July 2021: Dividend payable
280p to 290p range will be here soon :)
The whole point of a return of capital is because the business cannot see any use for the capital. So they left a shade under 8 billion debt on the balance sheet instead !! It's only 5.5 if you take into account cash on hand but they have loan obligations for nearly 8 billion.
Nuts ! Nuts Nuts ! I have my suspicions re the rationale and all of it revolves around the BoD making decisions that favour the interests of the BoD and their chums not the company or the shareholders !
When you go down this road on this scale you have charlatans at the helm. It had all been on the right track up to the fake Special Dividend, an actual return of capital.
A debt free mega giant woudn;t that have been a sight to behold and have shares in !
As Gavster said it would have been the Jewell in the FTSE crown...
IT'S JUST A MATTER OF TIME LET THE SP WHIPSAW SETTLE > CREDIT SUISSE RAISES TESCO PRICE TARGET TO 283 (280) PENCE - 'OUTPERFORM'
Seen all manner and higher estimates for 2 years now...it hasn't happened
LTI
I think some on here don’t understand that an investment here is not for all. If I invested in a company with greater risk to my capital then I would be disappointed with a small gain after a number of months or years.
TSCO is not a company that will see the gains some expect. The fact that the company decided to return the proceeds of the sale of the Asian businesses back to shareholders speaks volumes to me. They currently do not see an opportunity to create growth other than within the business.
If you take the cost of Covid out of the results then the results were better than expected. They still made 800m profit and most of the Covid safe costs will be significantly smaller going forward.
Keep collecting the dividends which IMO are well covered.
Much better than the 0.5% currently being offered on some ISa cash investments.
The mechanism to return capital from the sale of a business is by way of a SD. It was not an income SD from excess business income that had been generated.
I will not be paying income tax on this return of capital. If others want to lie down and class it as income then that is a matter for them.
Tesco appears to me to be at an attractive price level considering the improvements in the home market.
The current price equates to 179p pre consolidation. I'm sure most would have thought hat attractive a few months back.
IT'S JUST A MATTER OF TIME LET THE SP WHIPSAW SETTLE > CREDIT SUISSE RAISES TESCO PRICE TARGET TO 283 (280) PENCE - 'OUTPERFORM'
Numbers out in my last post due to the share consolidation but the point remains exactly the same.
The debt could have been paid down, the dividend raised and the share price could easily be in the 300s. .
Absolutely correct Spindler.
The BOD are the epitome of "Snouts in the trough".
The company pay's around 900m a year in dividends.
Instead of the special dividend which the BOD can now spend on jetting to their Barbados villas, the debt could have been paid down and the dividend raised to 1.5 billion (15p a share per year) guaranteed minimum for the next 3 years for example.
With a dividend of 15p a share, the share price would most definitely be at around 300p.
Happy shareholders, happy company, darling of the FTSE.
Instead, Tescos has been turned into a dog by those same directors.
As I said, I'm out before ex-div.
Yes I know the argument and I don;t agree with it. Just because debt is cheap doesn;t make it a good idea and i am well aware of the differences between running a business and a household or a govt balance sheet for that matter. CFO don;t make me laugh Fred Goodwin was a CFO and have they found the CFO of Wirecard yet ? You seem to give these people a pass because of their status...Goodwin drove Natwest from 7 pounds a share to 10 p and a govt rescue. We have all seen the slimy cronyism in politics recently Camoron and Greensill. The city is full of revolving doors and suspect decisions.
Let's agree to disagree but I stand by my argument(based on a business perspective not a household budget. THat Tesco would be in a better situation now with zero debt the same share float as previously and the share price woud probably be north of 300p. Have a good day I'm off for a swim give you all some peace :) But I hope many heed my words and look at that BoD a little more critically and vocally..cheers :-)
Spindler
Clearly from your posts you are a successful investor but you miss some of the fundamentals in business. You seem to look at business the same way you look at managing the running of your household. Debt is good for business for many many reasons. Not just obvious tax benefits but leverage, weighted average cost of capital(WACC) Also equity is far riskier than debt for financing investment.
In this period of time, where debt repayment is almost zero, TSCO would be stupid to have paid off some of their debt with the proceeds from the Asian sale. If you go through the recent RNS feeds then you can see they have recently refinanced their debt at a lower interest rate.
I don't expect you to agree with my post but I'm sure the new CFO will have a bit more understanding than you or I. I just don't understand why you waste your energy here. A bit like all those algo trades that serve to keep the current share price down. If the fundamentals are so bad, why have them.
or should be