BUZZ-View from the buyside: Tesco, Morrison shares find a shopper

** Tesco & WM Morrison - the 2 worstperforming UK large-caps this year - are contrarianvalue plays here says Investec AM's John Stopford.

** Hit by discount retailers both have lost market share,seen margins contract & seen investors leave the boat.

Tesco vs FTSE: http://link.reuters.com/gym62w

Morrison vs FTSE: http://link.reuters.com/hym62w

** Peer snapshot: http://link.reuters.com/jym62w

** Stopford says market share gains of discount supermarketswill likely slow down in future.

** Taking into account higher quality available at thelarger supermarkets discount shops aren't as relatively cheapanymore (Stopford calculates a gap of 10-15% currently).

** Big data could come to the rescue as the larger chainsare in a good position to extract some juice out of theirloyalty programs via personalized offers.

** Stopford says discount supermarkets will find it harderto take on Tesco, Morrison in more affluent areas such as Londonand southeast England.

** Both stocks trade within 5% of their 52-week lows, havesizeable short-positions and analysts, on average, remain firmlynegative on earnings & price targets. (RM://sudip.kargupta.thomsonreuters.com@reuters.net;RM://vikram.subhedar.thomsonreuters.com@reuters.net)