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So what's your feelings here guys, worth holding or get rid ???
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.
@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.
"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
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.
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
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.
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
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
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
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 ?
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