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Buybacks after a consolidation and phony Special Dividend cancelled out by the consolidation ? But it's a miniscule buyback programme, once again cannot see the point. At least this is simpler and won't continually swamp this board with questions about the consolidation and phony SD as per before !
They should have just bought shares back with the 5billion to start with, would have made a huge difference compared !
Spin
''But it's a miniscule buyback programme, once again cannot see the point.''
How can an ongoing buyback programme be described as minuscule ?
£500 million is just part 1.
Gad
''They should have just bought shares back with the 5billion to start with''
You need to read up a bit- Tesco would only be able to purchase up to 20% of average volume on a daily basis. It would take years to spend £5 Billion on buybacks, which is why it was returned to shareholders in one lump sum.
The current buyback programme is 'ongoing', meaning that shares can be bought back on a continuous basis as a new tranche is announced. This would come from profits as they are earned rather than from £Billions sitting on the balance sheet..
I don't care whether its a buy back or a dividend, I'm just looking forward to the 300p plus SP in the coming months, as for the dividend give it to Boris to get a hair cut...:-). AIMHO ADYOR!
moniman Could not agree more its re-rating is well overdue and that could easily take the SP above 300 fairly quickly with or without any BB - AIMHO ADYOR.
No sign of the 'nay sayers' now. Last Spring this was the lowest risk defensive company to invest in. Investors are also forgetting the reduced costs of the Pension scheme and re negotiated loans. Happy days!
JPMORGAN RAISES TESCO PRICE TARGET TO 330 (300) PENCE - 'OVERWEIGH
GOLDMAN SACHS RAISES TESCO PRICE TARGET TO 320 (310) PENCE - 'BUY'
BARCLAYS RAISES TESCO PRICE TARGET TO 325 (310) PENCE - 'OVERWEIGHT'
BERNSTEIN RAISES TESCO PRICE TARGET TO 330 (280) PENCE - 'OUTPERFORM'
leas
Indeed, sometimes patience is king.
It usually is with these "sleeper" stocks and then they wake up, largely because the investment community these days all seem to like crossing the road together.
barchid
Have to agree. Sometimes the patience needed is the most difficult investment to make when looking at making a profit. Like your good self I ignored the rights and wrongs of the SD and used the cash to buy more. :)
I did the same and used the proceeds from the special dividend to buy more stock :-)
Bought in for between 218p and 228p over a period between December 2020 and June 2021.
"It would take years to spend £5 Billion on buybacks, which is why it was returned to shareholders in one lump sum."
If you reckon a reduction in the shares you hold at the same time as giving you a taxable dividend is returning anything to shareholders then you have a different concept of things to most people ! for those who were not in a tax free wrapper it actually cost them money and even more money when the share price fell even after a reduction in the amount of shares in the market ! Even now at current SP its been barely any benefit to long term holders and let's not even talk about those long termers with purchase prices north of 300 p and even 400p......nothing whatsoever to celebrate and now they own even less shares !!!!
MillCottage
Lowest 215 and 236 from the SD.
Spindler
after selling you made the following comments. In June.......
I think there is a good chance it will drift lower to above 200p but in a FTSE market downswing yeah 177p is definitely possible.....would defo be a buy then even though the debt on their balance sheet makes me want to retch
I'm sure you will be able to 'spin' your post to make it look like you are an expert and an investment analyst. How many private investors were influenced by your comments? You never seem a positive kinda guy'
Spin
''If you reckon a reduction in the shares you hold at the same time as giving you a taxable dividend is returning anything to shareholders then you have a different concept of things to most people''
You obviously didn't grasp the concept of consolidation - it was a cosmetic exercise.
The return of cash to shareholders was real - sensible shareholders would have used the money to go towards purchasing more shares at low prices.
Spin
17 Apr 2021 09:36
''Having thought this through short of a correction, I am sure I won't reinvest''
04 Aug 2021 08:29
''The simple answer is a lot of people who own tesco shares are as daft as brushes. ''
best to leave the daft people to enjoy the re rate of Tesco.
Are those grapes of yours a bit sour?
You obviously didn't grasp the concept of consolidation - it was a cosmetic exercise.
Well from the announcement i'd wager 99.999999 percent of shareholders did not know that.
The SP is the highest for quite a while and good on those who bought and held from 2.21 odd. As i said in a downturn at that point would defo gone sub 200p. God for holders it has not. Current SP is no consolation to those i have seen on this BB who bought at 450p or 350p. As i Said I'm not comfortable with the BoD and the debt levels
best to leave the daft people to enjoy the re rate of Tesco.
It aint all that :)
It's a good company my argument is could have been a debt free BRILLIANT company
You have the debt and the BoD...I'll pass toodle pip
Spin
''I'm not comfortable with the BoD and the debt levels''
if you are not a shareholder then it should be of no concern to you.
Spin
Do you not know that businesses borrow money - get real.
The level of debt is of no concern to me whatsoever and certainly not of utmost concern to the BOD, otherwise they wouldn't have money going into an ongoing buyback programme
Well I’ll it my hand up I never saw this result coming with what our stock levels and what I put out compared to the 3 years I’ve been in my particular role.
A pleasant surprise as I hold 14,000 still .
But ! I can’t help feeling this buy back is to bump up the sp ( which it will do ) as for the board to get there long term incentives have to beat the basket of retail companies they are judged against and as I said awhile back Sainsbury’s,marks and spencer n Morrison’s are all up over 50-60% percent compared to Tescos’s which was sitting at10% before the announcement to now 20% as the shares where at 230 area so bear that in mind , so we still have 30% to go !
So less shares will equal higher EPS and allow them to grow the dividend so if your majority stake was bought at sub £2 you should now be laughing all the way to the bank as I wouldn’t be surprised if the dividend total hits the 15p mark in the next few years ,
So on that note it’s a hold hold hold for me..
That’s before any whispers of a Take over arise and as the US dollar strengthens buying uk Assets become cheaper
trb
''I can’t help feeling this buy back is to bump up the sp ( which it will do )''
The market determines the market cap of Tesco on a daily basis
annual bonuses are mainly based on sales/profits
Long term incentive plans involve various factors including eps.
The eps metric can be adjusted when number of shares is reduced, as it was with the recent share consolidation.
Lloyds bank have had 2 buyback programmes in recent years.
First average buyback price was 63p.
Second average buyback price was 58p.
Current share price is a little under 47p.
Buybacks are a return to shareholders - increasing a holders percentage ownership of the business. Eps would increase (if profits do not decrease) thus helping to give a further opportunity for a dividend increase.
net book value per share was £1.72 per share from the interim results. Therefore they will be buying back goodwill with the share buyback scheme. This is not right as far as I am concerned and you should only buyback shares when the market capitalisation is below the NBV of the company. They should pay it out as a special dividend instead.