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That's absolutely right. I just don't know why this is being sold so cheap when from Friday most current holders will reinvest what was 20% of the company back into the share price. What's more the reinvestment surely is more likely as holders like me see that the current SP so so low and will hope to grab a bargain.
what a mistake this share consolation has been. The market cant be fooled.I think this might go below £2
Do i see 2.19 ladies and gentleman....2.19 anyone ?
Guys - I think you are all a little bit too close to this one.
I've not ever owned Tesco before but I've just bought in at 222.
This is crazy oversold and will be 20% higher than now within 2 months - guaranteed.
This is ez money at these levels and if you can't see that - you're too emotionally invested in this one.
Enter stage left LTI to applaud them
As if to make a point Mr Market has kicked the sorry BoD in their pompous posteriors. Mr Market determines the SP not the BoD and boy has he given them a lashing. Now the hot money will be getting excited by post lockdown and looking at depressed shares and flowing there not a Supermarket that couldn;t even reach it's pre covid recent SP of circa 2.60 beginning 2020... in the most priviledged position since anyone can remember....it's now not far off the crash low's...ASTOUNDING...way to go BoD way to go ! Arrogant bunch of empty suits
Think I did miss something the share consolidation has taken place of course....
Now what I thought. Let's change that title to lower than it might be. Gla
Well, the anchoring at around 240 I got completely wrong, after ex-div day.
Kicking myself I could of bought back at 223 instead of 239.
Sitting tight and re-investing the divs is not so bad though.
Will there will be a lot of trading and taking out stops still to come before a billion gets re-invested.
Got no idea anymore.. It's a casino.
Hi
So we've gone x dividend recently, should or dropped more. If someone entitled to the div sold today they net 51p plus 222p which is 273p, that's quite something?? Or have I missed something
2.12-2.15 the bottom
It could be argued Tesco business model was over extended in its over global trading reach, together with with too many shares in issues, for a low margin high volume business. Makes sense to re-focus and exert greater control of the overall business and a 25% reduction of shares in issue keeps investor demand keen and amplifies EPS and yield from modest trading results. Medium long term good move. This couldn't be done without giving the II's support - a cash back to facilitate the transition and buy into the materially revised model (so debt reduction IMO was never an option, if long term II' support is to be maintained) . Tesco BOD are right sizing the business in a post Covid world, maximise their current business model/ relative to equity provision costs & returns - which in the medium to long is - IMO the right move. Many less shares always help in a stable profitable business - that was the primary goal, as any further massive expansion of the old business model would be the wrong move IMO DYOR. GLA By reducing your shares in issue by 25% ( or a 25% share buy back) is a massively bold positive move from the BOD and will pay many dividends in the future , sorry for the pun. How many FTSE 100 Co's wish they could do this without massive disruption to their business modelsand negative funding implications. Shows how strong Tesco finances are. So Tesco down, the we get IAG who borrowed an extra £2bn today and deferred the next 6-12 months pension cons, 88% down on revenue year on year and their SP - soars +8% with BOJO plan . Its a mixed up muddled up world except for LOLA. I know where my money is going.
At least we are not on the list today , with this dreadful illness focusing on Poland . Sainsbury ; Morrisons ; Iceland ;LIDL and whiter than white Aldi on list.
4% yield is a good return for a company currently. I am sure that some of the pension funds will realise the value soon. Short term we have suffered again by a strange decision by management but this will soon be forgotten
Totally agree, this sucks
The SP should stabilise soon, I just don't see it getting much lower in the short term especially as a considerable sum will be re-invested post 26th. Currently you get a 4.1% dividend if you buy shares at today's closing price. I was not going to re-invest my 2K at the end of this week but with the drop in the SP I am considering doing so, quite a few others will do so as well I think. This is a decent dividend in a solid company with good growth prospects, all reasons why I brought shares in the first place. I don't see anything to change my opinion although the current BOD may just be one reason. GLA.
B8gger it.... Just bought some more. OK the board have ****ed up but they surely are raking it in at the moment. They have done well to covid out of their shops. So blow it.. just buy more in my mad opinion.
Agree totally.
Another week and i am losing the will to live.
Well, now its clear. The consencous of opinion seems to show that the SD was a damp squib and the benefit has not been felt in a major fashion by shareholders especially when the consolidation kicks in (25% reduction in holding). It is also clear that Tesco BoD's plan to use consold to prop up the EXD share price has failed as it has now retrenched from 250p to 224p, a tad over 10% reduction, so thats another failed management strategy. Yes a few have felt it positive but looking at this an other BB's its not been a great success. What with dodgy accounting, double charging at tills and now this poor outcome, does anyone a Tesco think the delivery to customers and shreholders is just not good enough? As a leading FTSE100 player I personally hoped for better. The big lesson we all must see, including any guru's who stood steadfastly by the BoD action to make the consol to prop uf the EXD share price is simply that the market will dictate the share price and not Special Dividend / Share Consol etc. I wonder what would have happened to the SP if no SD offered, no Consol and all the money went back into the business as repaid debt and investment. Most likely we would have fallen EXD amount but recovered to near where we are now. As per my school reports "mustr try harder" and "could do better" sums up the current Boards delivery.
So is a roadmap out of this Lockdown nightmare going to spell bad news for Tesco ? I watch from the sidelines having been bitten by this dog multiple times on it's way back down !
Well LTI they could have sold their shares in seconds and it would be in their broker accounts available to re-invest not having to wait for it via some strange SD vehicle with a tax implication for some...you are obviously fine with it many are not and although as you have correctly pointed out it is what it is and is water under the bridge, the whole thing flags up some concerns re the management which is a very serious thing to take into consideration when choosing to invest or remain invested in a company
£70 i would of been happy with that to then Chuck it in Lloyds! Looks like it’s not to be
Spin
''wrong move to not pay down debt instead and I feel the decision was done for the BoD benefit and not for the shareholders''
ZZZZZZZZZZZZZZZZZZzzzzzzzzzzzzzzzzzzz
Many shareholders would prefer the money to do as they please with.
Some shareholders would have moaned no matter what the decision wouldn't they.
Are savvy investors going to put their (so called) SD back in whe n the trend is down and also could be a market correction ? A think a lot of the savvy money may stay as cash for a while
JimJam that lag between payout and XD(which wasn't a Div or SD imo but hey ho regardless) is something I hadn't thought about. It's such an unusual situation shares reduced in the float and the compensation payout lagging it kind of makes sense the wind has gone out of the SP..question is willl it come back or be invested elsewhere. Unfortunately outside of the automatic reinvestment others may invest elsewhere. And the recent payment into the Pension has limits on it's exposure to Tesco....I guess that maybe at max already ...