Member Info for ggplyr

A reduction in the pension liabilities due to circa 15% more deaths in 2020 than was previously factored into pension liability calculations. More excess deaths into 2021. Some of these excess deaths will be drawing on defined benefit schemes, some of these will be Tesco.

So like you say, the board have done as they see fit, they do not believe the current debt levels too high i presume.

Regarding debt-
Say your Return on investment = X%
Say your Cost of debt (interest) = y%
if x>y then makes sense to have debt

But a company always have to pay interest on the debt, so it then becomes down the risk the company accept. If you have a bad few months you don't want to have too much debt so that you can't pay back your interest and risk insolvency.

haha!
@ longtimeinvestor. I don't know exactly what are you referring to, the sale of the business will be a business disposal. This will be treated differently from normal operational profits, but how it’s treated is done by Tesco and does not affect your tax situation as a shareholder.

Tesco have decided to return this to shareholders, which they have chosen to do through a dividend and for which dividend tax applies to you, not income tax.

Chris idea makes no sense. The facts is Tesco now has more cash than they need or can invest in. This should be returned to shareholders who can invest it elsewhere to put it to better use than doing nothing but sitting in Tescos bank account. I do not see how Chris’s idea addresses this at all.
They could do a share buy back which returns cash indirectly, although buying back a quarter of your market cap will probably inflate the price too high temporarily while the buy back in progress (too many buyers not enough sellers). Once its above its real price (whatever that may be) the company is paying too much for the shares, and shareholders would be better off having the dividend.

Are you a tax accountant?

Why would the special dividend push it to 250?
It's known, it's factored in the sp already.

Suggest you go google share price after a dividend.

Something else that's equally relevant....
https://www.theguardian.com/business/2010/apr/25/tesco-record-profits-terry-leahy

It's the company saying "I have nothing worth investing this cash in, you have it"

Why before then? Just keep your cash and pay yourself the dividend?

Any "premium" was factored into the share price as soon as it was public knowledge. i.e. if the "market" thought it was a good deal the share price rises on the announcement. (Or prior to an announcement if it was expected)

And yes, once a stock goes ex Divi it's price drops by the dividend amount immediately. (When it goes ex Divi existing share holders are entitled to the dividend at a point in the future even if they sell their shares before this)

It doesn't make any difference whether a dividend is paid from sale of a bit of the business from normal earnings or even extra debt the companies takes out to specifically pay a dividend.

Share consolidations won't make you richer or poorer either. You can't create value of think air.

Ultimate owner - THE RT HON VISCOUNT GARRETGRAHAM WELLESLEY who owns:
WELLESLEY GROUP INVESTORS LIMITED owns CLOVERLEAF 375 LIMITED*
WELLESLEY GROUP INVESTORS LIMITED owns WELLESLEY GROUP LIMITED which owns WELLESLEY FINANCE LIMITED**

So a transfer of shares from CLOVERLEAF 375 LIMITED* to WELLESLEY FINANCE LIMITED**
It is WELLESLEY FINANCE LIMITED** which is started the CVA.

Ultimate owner - THE RT HON VISCOUNT GARRETGRAHAM WELLESLEY who owns:
WELLESLEY GROUP INVESTORS LIMITED

Imagine you owned something that said you are entitled to a pot of cash which has a value of £100. You can sell this at any time.
Now imagine out of that pot you get paid £5 right now leaving £95 in the pot....

So now you have a fiver in your hand and you can sell your pot for 95quid. That's all the dividend is and that's what it does to the share price.

typo.... should read "so additional cash from operations = 20m"

Ah ok, i forgot we had a balance at Q3...
starting point of Q3 @722
dividends = -100
Share buy back = -20

EBITDA at Q3 =360*+134 = 494
EBITDA at full year = 515
so additional cash from operations = 2m
which comes to approx $620m of cash.

not sure on the timing of tax repayment, but the credit for 2017 + 2019 and the tax charge for 2020 comes to approx net 40m positive cash flow.

*ive used operating profit rather than EBITDA, but with low depreciation its close enough.

And how are you getting to a P/E of 1?
Not that P/E has much use in a one off exceptional year.

You are probably double counting H1 EBITDA. i make it more like 650m cash
Cash @ june =587 (with EBITDA =360 for the half)
Dividend = -100
tax rebate 2018 = +47
share buy backs = -40? - not sure if this is right for H2?

trading update the other day for full year EBITA = 515 - 360 (Operating income at the half year) = 155
Additional tax rebate for 2017, 2019 plus tax charge for the full year +40

total cash = 650m

I'm doing the same.

Hmm, bit too much of a red flag imo. Second time he's reduced his holding significantly. Tempted to half my holding. Thoughts?