Member Info for leas

hully
11th February

Rosewall
Only echo your thoughts. True value would then be determined after several weeks in regard to the sp. It is clear there will be some volatility in the short-term after the GM.

Enjoy your weekend

George
Same pattern now for the last couple of weeks. Maybe accounts for all these algo trades putting the brakes on the sp in order for the larger institutional trades.
The pattern will change of course. Expect it go higher when they are fully loaded. May even get a holdings RNS at some point.
Just my opinion of course.

'that the company is not a viable business if they have debt......

Spindler
I know this wont sit right with many private investors as they see debt as a reflection of the company not being viable without it. Debt is reduces your tax liability. It also builds your business credit.

Following link may help too. I think paying into the pension with the proceeds of the sale was good but if I am honest I am undecided and not knowledgeable enough to understand the full rationale of returning money to shareholders by way of a SD. It can help institutions and their pension liabilities but I cannot see the BoDs not taking advice from the city.

https://www.montrealfinancial.ca/blog/7-reasons-why-debt-is-good-for-your-business.html

Usual large reported trades. Again impossible to say whether or not they were buys or sells as we don’t know the time they were executed. 2 large ones at intra day lows and several at the days highs.
We are mere spectators. :)

Lurker
MRW fell on the day of its results and it traded positive afterwards. Their results equally as good. Online trading with TSCO is increasing and not struggling to meet capacity as much as the other big 3.
My guess is a lot of pi’s were expecting a significant gain today despite it trading above 230p. I would guess that some have sold today hence the neutral sp reaction.
Tbh, with all these algo trades the price at the moment can be taken in any direction that suits institutional investors.
This is a sound company with little risk.
As fir the bank, like SBRY someone would be happy to buy if that is a solution to minimising the company’s exposure to the banking sector woes.

Not sure if it was picked up by many investors of this sector yesterday but an approach was made to Carrefour by a Canadian company. Although the talks are at an early stage the French Government has stated that the largest private employer in France will remain French owned.
Although OT, certainly worth a read as it may trigger some consolidation in the food retail sector.

https://news.sky.com/story/french-government-will-take-a-close-interest-in-canadian-companys-bid-for-carrefour-12186949

paddy, you have until the 11th Feb to research and come to your own conclusion. My reply is not intended to be dismissive but it depends on whether or not you intend investing based on other fundamentals or looking at a quick trade and gamble. There will be a share consolidation and probably a fall when it goes XD.
I suppose you also have to consider is it worth buying with the expectation that it will rise as we approach the GM.

Rosewall

Good morning, pretty much on the nose with TSCO. I too thought the results were prices in. MRW had great xmas figures and fell on the news but have now regained some value and some. Now we have the run up to February 11th. As some have already commented, despite the bank lots of positives.

I see the algo trades are having to work overtime today. :)

cdmoreear
thanks for the link. We will see if the city has already priced in the trading update. For me the I am looking further forward than the SD, hoping to reinvest it here thereby increasing the yield when ordinary dividends are payed.
Lots of scenarios from different lse members but it all boils down to each investors personal circumstances.

It will be 51p, no share buyback but remaining cash from the Asia sales will be going to the Pension Fund. It may well drop by 51p but then again you could see ‘new money’ coming back in who did not want to pay any tax on the SD payment.
Also have to remember the regular dividend payable later in the year .

On the 11th Feb :)

Webba
I can see a continued rise as we approach the trading update next week providing the markets are not spooked. I think the update is expected to be good so maybe it is priced in already. MRW fell on the day of it's update despite the positive numbers.
Totally agree with your comments about the next quarter and can see restrictions continuing until Easter. TSCO is one of the few supermarkets currently running an advertisement campaign and with Asda losing market share you would expect the company to do well post covid (or the new normal)
Maybe after XSD TSCO may attract more investors as there will be no tax implications and uncertainties about the company valuation with some investors waiting for the correction in the sp after the GM.

barchid
It was not ,02p but ,0002p, Sounds crazy but there was never a good time to sell. At .48p EB was mentioned as a buy in the Midas section of the Daily Mail :]

Rosewall
My biggest ever return on a share was in the very early 90s. EB was a retailer selling electronic games online. I had no investment experience at all but being the younger generation at the time I saw the potential. The only fundamental I understood was the lowly MC. I took a gamble and loaded up at 0.02p A decade later I sold at £1.80p when the company had morphed itself into Game.
I then made the mistake of investing a proportion of that profit in a high yielding company. HMV at the time fitted the profile of a good safe company that had been on the high street for almost a century.
I managed to get out a week before them going into admin losing 60% of my investment.
I think experience has told me that luck plays a significant role in making money from in this type of investing but agree we can reduce the risk with research.
I am sure in the past you have read articles from journalists who have engaged the services of a monkey and put them head to head with fund managers.
No prize for guessing who came out on top.

Tzap
Same pattern as yesterday with large trades being reported after the bell. All red of course and a cruel UT. Question is, are they all sell transactions.

Rosewell
In fairness I think in the past I referred to the sale of the 2 businesses in Asia as a singular sale of assets but not all private investors are as diligent as one another.
You could also say the same with the institutional investor too. I can remember holding a pharma for a number of years and can say without hesitation that the private investor knew more about the business and its journey leading up to a commercial deal.
You are clearly a guy that does his due diligence and that has to be respected but equally an investor who may be a bit more ‘cavalier’ is to be respected if they make a profit.

barchid
Fully agree. That said there are still plenty of trading days left before the 11th Feb. I’m sure the company has took advice from the city and this process is what they have determined to be the best way forward for shareholder value.
However, as you point out this has led to investor confusion or certainty private investor confusion who will be hoping for a rise as we approach the GM.
I guess that is when most will sell giving an opportunity to the institutions.
All guess work of course and I will reassess my strategy as things play out.
Fwiw, I think TSCO will be in better shape post Covid and their online sales leaving the rest behind. We also have to remember that Booker will be doing well too as smaller independent shops will be seeing increased footfall. This on top of savings running the Pension Fund does make a strong case for a long term hold.