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Its a place to exchange thoughts...all thoughts..people can then think hmm that's interesting..hmm no that isnt....i think some on here need to engage some crticial thinking around the BoD...and not give them a free pass...they have cost you money...there are certain posters who say oh well no guarntee...hmm thats investing...yes it is ...but critique of the company is critical....the BoD have gooten a free pass in my opinion ...what's up next ? They are being renumerated handsomely i remind you and they have made decision i ad many others find hard to fathom. The SD was a lie, it was called aSD ..it wasn;t..it was a return of capital under the wrog label ...WHY ? Tesco has 7 billion debt take out cash on account 5 billion...tha could have been vaporised...and you would be sitting holding shares in a money making debtr free company....that's not investing oh ...well thats decisons made by well paid people up in the wheelhouse....whose first look out is the company and the shareholders as one..nothing else
@Chelwood @Leas
Gents, totally correct, we all get things that do not go as well as hoped but there is nothing to be gained by constantly posting how fed up one is, it is rather tedious for current or potential investors who wish to swap ideas & perhaps test them against the opinion of others.
Buying shares is never a guaranteed way of making money, sadly some seem to think it should be.
@Chelwood...agreed and I have sold. I was looking at the debt load that could have been paid down makes me mad to be honest..I cant see me jumping in here short of a correction or i see some opportunity...imagine that a debt free Tesco with the same share float as before....anyone reinvest their BS SD at 2.46 odd to take their share tally back to where they started and watched the SP shrink ? Many i figure
Chelwood
Could not have put it any better. Sadly LSE have too many members that are Warren Buffet wannabe. That and 10 bob millionaires that try to convince everyone that they are so successful at investing that any opinion they post is factual.
From experience the opposite usually applies.
Having read and digested the board here for several weeks its hard not to detect there are some disgruntled investors.
At the end of the day no one is forced to invest here or anywhere and the world of investing to me is emotionless,everybody wants a fast buck.
Sell your holding if you believe you can do better elsewhere.I believe this will come good.
Oh and TUI are now also doing a convertible bond issue for 400 million on top of all that and Barc have the highest rating on it amongst the broker community....current SP near 400 p there is some magical thinking sentiment going on with that stock corwd...even Barc don;t agree with current valutations
Barclays have a 300 p rating on TUI after a rights issue, govt bailout and a shattered business environment. Jeffries have a 78p rating on it. I have watched the ratings on tesco at high 2002 and north of 300 none have proven correct for at least 2 years. If this stock can;t catch a break during the most exceptional times when it was going gangbusters when can it exactly ? Oh yes the extra costs....and then they pay back the rates relief. And they did that because of a SD that wasnt a SD because they knew they would get flak for it in the media. They were determined to call this an SD when it wasn;t and they were determined to push this through .....WHY ? I suspect self interest, favours for mates in the city ? Future "goodwill" ? I hold the board suspect at TEsco .....Dave now gone is he doing a ferguson(MUFC) wanting nobody to follow his success in reestablishing Tesco so he can bask in chosen one status ? Well Dave I guess you righted the sleeze ridden ship, but success with SP where it is that aint no success. I have seen posters here who are still underwater on their TSCO share purchases back in the good old days...400p plus.....this tukey can't break 250 barely in exceptional times being the only business trading...what's the outlook now ?
Hi Gavster-NBC > Please Don't throw the baby out with the bathwater. Barclays today reiterates overweight with a target price of 290p. ALL IMO
With every dividend, special or normal the value of the Tescos goes down with it.
It is exactly correct someone stated that the board acted in their own interest and not the company's, no dividend reinvestment from the BOD.
I still think it was right to pay back the tax relief.
The decision to only match last year's dividend in pence per share is shockingly poor considering the Asia sale.
The special dividend has not done all it could have done for the company, so why would people invest in Tesco if they are not going to fully invest in themselves ?
I'll be out day before ex-dividend, that's if there is even a rise towards it.
Better companies and yields to invest in elsewhere.
All IMO
LTI ..the simple fact they called a dog a duck. They used the term Special Dividend.
Now you cottoned on very early on...not everyone is like you.
You saw it for what it was many would not and why should they when its called a special dividend...
And if you say a duck is coming to dinner and a dog turns up, people are right to think hey that's a lie, it;s a dog not a duck
Special Dividend turned up that was not a special dividend. They even made some liable for tax it's an egrarious abuse of not only language but the technicals themselves by using the wrong labels.
I'm sure if you had a headache and took a pill and found out it was a laxative you;d have something to say about labelling
Spin
''that was not a SD ''
It was clear from day one that it was going to be a return of capital. It was not a special to return
excess operational income.
What irks me was calling a duck a dog doesn't work.
Calling a return of capital a special dividend seems to fly under the radar
They would have been better paying down all debt something aside for future pension fund allocation.
If they had to do something regarding the free float of shares, I would rather they did a stock split !
The irony is more shares would have probably been worth more than they are right now.
Folks like a stock split, they don;t like a share reduction. Fundamentals also require some positive sentiment
Tesco more expensive for shopping than Asda Aldi and Lidl but there is the Clubcard points and you can shop around . the small Express shops always busy . Should survive to pay ordinary division and that’s what you need these days
I think the special dividend and share consolidation was a disappointment to many imo
Why wouldn't they pay for the covid costs out of the sale of the Asian business? Seems they could have done a lot more with that, Still a strong hold for me.
"People expecting to see £3 or so straight afyer the numbers were surely dreaming, a stock this size is closely monitored by professional investors for their funds and priced accordingly."
Really those pro's set the price do they ? This share was some time ago way north of 400p. With the reduced shares it has the potential t equal previous valuations...providing the board do the right things which they have done right up to the SD that was not a SD and the rates relief repayment. 227p for this company is a joke. The foolish board had idea of anchoring the SP around the 2.50 mark like Canute had ideas about holding back the tide. Make the right decisions for the business and the SP will take care of itself
"The additional costs due to Covid were a 'one off' Profits were still over £800m which seems to have been largely ignored here."
Yes that wasn;t lost on me in considering it for future upside
'Had the relief been kept and debt paid down i reckon TSCO would be north of 300p right now possibly 350-400'
So that one off payment would have potentially put 30% on the company's valuation? Had it been an annual payment then perhaps. The value of a company is based on fundamentals and future earnings. The additional costs due to Covid were a 'one off' Profits were still over £800m which seems to have been largely ignored here.
@leas
Quite agree, I came into this stock earlier this year for exactly what you wrote, additionally I wanted something that could act as a counter balance to other, riskier, shares.
The divi on the assumed "flat" numbers is around 4% and a lot better than a bank deposit. If people want higher risk there are plenty of choices, but whilst nothing is zero risk this has to tick many boxes in reducing ones overall risk.
People expecting to see £3 or so straight afyer the numbers were surely dreaming, a stock this size is closely monitored by professional investors for their funds and priced accordingly.
"Had the relief been kept and debt paid down i reckon TSCO would be north of 300p right now possibly 350-400"
Which is why i was invested before and now am not !
My take on this is this:
1) I applauded the paying back of rates relief when first announced
2) I know why they did this because of the "so called" SD and they would get jumped all over by fame hungry know nothings demanding a windfall tax
3) as it turned out the SD was not a SD in any shape or form it was the most stupid way to return capital, period.
4) they should have paid off debt not this ridiculous false SD
5) They have had real impact to the business caused by covid and should have kept the relief and paid down debt with the Asia Sale. They've almost acted in a charitable fashion in the nations interests to the detriment of their own business. Sunak is printing money like confetti so entiely entitled to the relief in my view.
6) I now hold the board suspect around the SD and relief payback.
7) I can't help but think the board acted in their own interests re the SD and not the business.
The boards remit is the business and the shareholders period.
Had the relief been kept and debt paid down i reckon TSCO would be north of 300p right now possibly 350-400
with TESCO numbers. It is no surprise that profits are down with the huge increase in their extra costs to deal with Covid? Well done TESCO and all who work for them? yesterdays drop just shows how fickle shareholders are? I have added.
robleo
Perhaps it the best place to seek advice on whether or not to hold or sell.
All depends on your own personal circumstances. For me it is a hold and collect the dividends ignoring the sp. If the MC is the same in 10 yrs and the yield remains the same then I will be more than happy.
30yrs ago I wouldn’t have even considered investing here. High risk usually came with high returns if you had done your research.
Thanks LTI. I'm just off my shift. Won't get a chance to look at the numbers before the weekend
DT2
From memory, they took on over 45k staff, and have kept a substantial portion of those permamently. Some may have been 'standins' for sick staff for a while but not the bulk. A significant number are now (the same as other supermarkets) picking or delivering product via additional vehicles, clearly adding to the costs involved following the change in shopping habit.
Quite clearly all this additional expense will weigh heavily moving forwards, not just this year - unless shopping demographics change.
So what's your feelings here guys, worth holding or get rid ???