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As a new investor / speculator I can’t believe the Tesco Board have persuaded myself and presumably institutions to take up the special offer of buy 2, pay for 3 deal. They’ve simply given with one hand and taken with the other whilst pocketing the sale proceeds themselves. Or am I missing something?
Pantherm100,
What you are missing is the fact that (if invested) you will shortly have a very large dividend (cash) in your pocket. They have not "pocketed the sale proceeds themselves", but they are passing a majority of them directly to shareholders via this special dividend. The remainder have been used for corporate purposes such as reducing the deficit in the pension fund. The consolidation of the shares from 19 to 15 is arguably something of a red herring; you will still "own" the same fraction of Tesco as you did before, because the *total* number of Tesco shares reduces (and in fact has now reduced) in the same proportion.
Rgds, Mike.
Thanks for the response Mike
But whilst I still own the same fraction of Tesco it is worth less. Even with the 51p / share ( as of today) I’m worse off than last week. My original view remains.
Pantherm100,
You don't receive the dividend until 26 February. Are you still "down" once you take that into account? Obviously I don't know how many "old" shares you owned, but the dividend will be that number times the 50.93p.
Mike.
Hi Mike
I had 6250 old shares which translates to 4934 new. My calculations are based on 51p x new (not old share quantity). That would make a difference. Are you sure this is correct because my understanding was clearly different. If so how do you know?
The dividend was paid at close on Friday , so has to be on old holding surely
I had 11436 shares in an investment account now 9028 shares,(so thats makes sense). 3044 shares in stocks and shares isa , still reading 3044, and not 2403? but the value on the ISA is £0! Both with Eqi.
I had the same with cairn energy , it took to the next day for the new share listing to show on my ISA account
Good thank you. For a minute I thought I'd lost over £7000!??
Hi Pantherm100,
If you read Tesco's RNS (Regulatory News Service) announcement of 25 January at 07:12, "Notice of General Meeting", it should all be clear in there. Press the "RNS" button near the top of the screen, and all their announcements are there, in date order.
I hope that helps,
Mike.
And on the 26th you can reinvest it.
Thanks everyone for your views particularly MikeM14
Whatever the outcome I fail to understand the logic of this process adopted by the Tesco Board. Very disappointed.
Hi again Pantherm100,
Sorry I've now lost track of which of your posts I'm replying to!
I once saw it written:-
There are companies run *by* their management, and there are companies run *for* their management.
I'm sure everyone will have their own opinion here...
All the best, Mike.
Tig
''All in all we haven't lost out but we haven't gained therefore it's been a complete waste of time ''
PLEASE stop this nonsense.
Did anyone buying recently really expect to be given 51p per share from what they did not own.
Investors ALREADY owned the 51p sitting on the Tesco balance sheet.
The 51p will no longer be on their balance sheet but in your back pocket.
Are we going to get every time an xd date comes along
''''All in all we haven't lost out but we haven't gained therefore it's been a complete waste of time ''
Am I to expect a similar message in MAY?
LTI
I totally agree [ choke :-) ]. I have lived with this special dividend for almost a year and have explained to colleagues directly and on this and other boards. I can honestly say that most of my colleagues have a greater understanding of this investment than many of the posters on this board.
I’m going to offer up an opinion here - might be subject to a bit of debate...
Tesco have made significant improvements to balance sheet, pension deficit etc through the sale so I personally expect to see the current SP rise by 7-10% by mid March off the back of that. If say 50% of people reinvest their SD on 28/02, I would expect this to push the SP up a further 5% by say end of March. All of this against the backdrop of an improving Covid situation means that this will only go north. I personally think that the SD has not been all bad. You currently own the same percentage of the company (in a smaller number of shares) and have the option to buy more from 28/02 and in all likelihood at a preferential rate with minimal fees. Worst case, if you do nothing you’ll end up a good 15% up over the coming months anyway as the market understands and appropriately positions the SP???
Prag',
That sounds good to me my mate!! :) :)
Nige
Totally agree Rosewell.
The lack of knowledge is quite worrying and therefore causing a lot of unnecessary confusion.
The high vote percentage should tell all that investors will not be losing out, but then again they all probably took the time to read and understand what they were voting for.
Looking forward for a sustained increase from now, on the back of a much healthier company and with the strong trading we are now seeing.
All good, so good luck.
Prag, Fully Agree the 'new' or fresh buyers shall see the benefit off the added 'pension' contributions.
You’ve hit the nail on the head. Future shareholders will benefit from this sale at the expense of previous shareholders. We would have been better selling last week and buying today.
Can't even buy today on HL currently
Spindler, you can now as I just did
So if we put the sour grapes behind us including mine, i sold few week ago on the rns around the BS SD. Where do we see this SP going ? close to or £3 or smidgen above £3 ? I think it;s got the legs on it ? Other views ?
just loked again shows nothing just a number to call