Member Info for leas

Chelwood
Nothing has changed from yesterday other than the sp. Frustrating if you’re watching the movement on a daily basis. As I have posted before, those algo trades are there for a reason. They are not for the benefit of the pi’s unless your investing on the dips.
I was in PETS a couple of years ago and it has since doubled when the sp was allowed to move in a free uncontrolled way.

I suspect as the sp rises then the posters that are not invested or those that had other expectations will comment less and less.
On any significant rise you will get those posters who are wise after the event and post that they invested at a price below 210.

Guys
if you think debt is bad for business then I suspect you have never had your own businesses, The tax benefits allow them to cover the cost of borrowing particularly at a time of all time lows. If TSCO had paid down debt then they would have really thrown the cash away. That is why they chose to reduce their Pension liabilities.
The Weighted average cost of capital is good with this company, debt is covered very easily from earnings as is their yield. EPS is excellent too.
Apologies if this sounds a little patronising but you don't run a company like you run your household. The numbers at TSCO are good. It is a defensive investment with a good yield with the potential of some capital gain.
What I don't understand is why anyone not invested here would want to waste their energy posting on a bb that by nature usually have experienced private investors. What I post or others natters here does not determine the direction of the share price.
Go on the AIM bb's and influence your fellow investor there. Some of those debt laden companies without revenue need your well intended advice.

barchid

No coincidence that the negative posters who are not invested stopped making any comments as the market closed.
Like I posted earlier, if this is such a poor investment then why have the algo trades. Who benefits?

Another observation that has been overlooked. Many institutions would have reduced prior to SXD in order to reduce their tax liability. Many of those will have annuity obligations to meet.

So we finish at the price it was at the close of play Tuesday. Priceless, focus was on the ‘one of costs’ of the pandemic. Booker up and running now and the share of online sales increased significantly. Staycations and home entertainment likely to be high due to difficulty in hols abroad.

Money from the impatient to the patient :)

LTI
I think some on here don’t understand that an investment here is not for all. If I invested in a company with greater risk to my capital then I would be disappointed with a small gain after a number of months or years.
TSCO is not a company that will see the gains some expect. The fact that the company decided to return the proceeds of the sale of the Asian businesses back to shareholders speaks volumes to me. They currently do not see an opportunity to create growth other than within the business.
If you take the cost of Covid out of the results then the results were better than expected. They still made 800m profit and most of the Covid safe costs will be significantly smaller going forward.
Keep collecting the dividends which IMO are well covered.
Much better than the 0.5% currently being offered on some ISa cash investments.

Spindler
Clearly from your posts you are a successful investor but you miss some of the fundamentals in business. You seem to look at business the same way you look at managing the running of your household. Debt is good for business for many many reasons. Not just obvious tax benefits but leverage, weighted average cost of capital(WACC) Also equity is far riskier than debt for financing investment.
In this period of time, where debt repayment is almost zero, TSCO would be stupid to have paid off some of their debt with the proceeds from the Asian sale. If you go through the recent RNS feeds then you can see they have recently refinanced their debt at a lower interest rate.
I don't expect you to agree with my post but I'm sure the new CFO will have a bit more understanding than you or I. I just don't understand why you waste your energy here. A bit like all those algo trades that serve to keep the current share price down. If the fundamentals are so bad, why have them.

Chelwood
Could not have put it any better. Sadly LSE have too many members that are Warren Buffet wannabe. That and 10 bob millionaires that try to convince everyone that they are so successful at investing that any opinion they post is factual.
From experience the opposite usually applies.

'Had the relief been kept and debt paid down i reckon TSCO would be north of 300p right now possibly 350-400'

So that one off payment would have potentially put 30% on the company's valuation? Had it been an annual payment then perhaps. The value of a company is based on fundamentals and future earnings. The additional costs due to Covid were a 'one off' Profits were still over £800m which seems to have been largely ignored here.

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.

I don’t see many negatives on today’s results. Booker will be running at full capacity soon and activity likely to increase as staycations are looking more likely now for the masses. That should also apply to the shop floor too.
A ‘line in the sand’ has been drawn now and any future earnings will be compared to today’s RNS.
This investment for many is to underpin their portfolio and not to see big capital gains in a short period of time.
Keep collecting the Clubcard points and the dividends . :)

Dividend being kept the same a little disappointing but results pretty much as expected. Additional costs are in the past now but imo the business is now in a much better place than it was pre covid. Happy to hold and will add should the sp fall back further. That said, the Market is much more forward thinking and can see the sp recovering as we approach the close.

NYR

I don’t there is too much concern about the finals. Xmas update was good and from what I have seen and read footfall has been exceptional. Booker will be almost up to speed as restrictions get lifted.
All that said. As always the sp is under the influence of the institutions but I am always an optimist.

Eccles
Your comments don’t stack up. If you bought last year then you would have received the dividend, the special dividend and also a capital gain of 10%
You also stated, from memory you were selling here to buy MRW which again did not make sense as you would invested in the same sector.
Like you said earlier. Nothing you, I or the Telegraph says makes any difference in a ‘blue chop company.
Not calling you a liar but certainly a lot of what you post is inconsistent.

eccles
It is an opinion. Nothing more, nothing less. Maybe if this was a small AIM with little volume then yes, their comments good or bad can influence a share valuation.

Key to their thinking, the grocer's confirmation to analysts that it was no longer seeing "significant" profit dilution of its in-store sales.

The reason was straightforward, increased online shopping because of the pandemic had allowed greater economies of scale on the digital side by spreading its fixed costs across bigger volumes and more customers.

Clients had also increasingly been opting to use Tesco's Click and Collect model, thus avoiding delivery costs and boosting profits.

And there was more.

The pandemic had also seen shoppers return to Tesco's superstores from its German discounting rivals because their size meant shoppers were likely to bunch in particular places inside, the tipster said.

Another key rival, Asda, was less likely to be as aggressive on prices under its new owners.

All told, Questor said, grocers' high gearing meant that Tesco's bottom line should get a boost, as even relatively small increases in sales can translate into "big" rises in profits.

Have to agree. Fresh produce at the German markets are stored without care. They are tasked to replenish displays within a timeframe but also covering checkouts. Their staff always seem stressed and rushed.

I see the share price is starting to climb back to the 240s as we approach the results next week. Could be some news in future dividends now that there are 20% fewer shares .

‘Offset some of the additional staff costs’....

DT
Yes the extra wage costs will be reflected in the balance sheet and hope the cost savings in other areas of the business this year helps to offset the additional staff needed.

DT
Gearing costs towards improving online sales to meet capacity is now absorbed by the business. Also expected costs of building distribution hubs will no longer be a possibility as it is accepted that those larger stores have been the most efficient way of supplying customers.
I have to say having spent almost a year now in the U.K. I do think that if you’re a Clubcard holder and take advantages of their offers then TSCO beats the German competitors hands down.
Maybe a biased view but the quality of their fresh produce is much better at TSCO with a much better organic range.