Member Info for MikeM14

Sydney2021,
You say "I bought 10,000 at 3,10 week ago".
That can't be right. They haven't been above £3-00 for the last several years.
If you go to the top of this webpage, and press the button where it says "TSCO Share Charts", then you can select a 5-year timescale.
Mike.

Hi Sydney2021,
You should have 7,894 "new" shares. Multiply your "old" holding by 15, and divide by 19. That makes 7,894.736 but unfortunately you lose the .736.
Plus you should get a dividend of £5,093 (gross of any tax you might then owe) which you should receive on or just after 26 February.
I hope that helps.
Mike.

samson123,
"Which charity have I donated to?"
It goes to Trussell Trust (forgive spelling if wrong), for foodbanks.
Plus the charity via any tax on dividends is "UK plc"...
Mike.

Thanks Lupo. Yes, I'm aware of the [potential] dividend tax implications - I pointed this out in my very first posting on this board (and in fact my first ever on "LSE"!) about a month ago. In my case I will be hit with the income tax on dividends but luckily only 7.5% (I'm recently retired) and only on about half the TSCO dividend (without this particular dividend I'd have been way below the £2,000 threshold this year because so many of my other dividends have been scrapped or reduced or deferred). It is certainly not a pretty picture for higher-rate taxpayers to be hit with 32.5% on this - in effect being taxed to stand still! Plus there's the loss of a fraction of a share in the consolidation if one didn't start with a multiple of 19 (or, in my case, dealing costs to adjust one's "pre" holding to get it to be a multiple of 19). Furthermore presumably Tesco have to pay fees for the admin work of effecting the consolidation etc - cash going out of the company.
Regards,
Mike.

It seems amazing that it fell *below* the 1280 - it went as low as about 1260 early this morning.
For me the investment case has not changed since yesterday. Unfortunately I've not left myself enough cash available to top up.
ATB, Mike.

bluerose,
I hope you will see my response in the spirit of trying to be helpful.
I don't see how you think we've lost out. To illustrate with an example.

Last Friday let's say you had 190 "old" Tesco shares. The market price was about £2-40.
Therefore you had £456.

Today you will have 150 "new" Tesco shares. The market price is about £2-45.
That's £367-50.
You also have a dividend of 50.93p to come (payable on 26 Feb) on the 190 old shares.
That's £96-76.
So now you have £464-26.

In what way do you think you've lost out?

Rgds, Mike.

samson123,
I'm with II as well, and they got mine exactly right. In fact, a week or so before the div/consolidation I topped-up my holding of Tesco for that very purpose (ie to slightly increase my holding to part-way compensate for the forthcoming reduction, but also to ensure that I had a multiple of 19 so as to avoid losing a fractional entitlement). On the face of it, they've got yours wrong and you need to query this with them, but:-
(i) I assume your 2432 were all in one account, not spread across trading account, ISA, SIPP or whatever, and
(ii) I wonder whether because you bought the extra shares as recently as Friday this was past some administrative deadline. I don't remember II stating a deadline explicitly in their corporate action notice, but I did see other posters on this board, last week, mentioning deadlines from their own brokers such as 16:00 on Thursday (or Friday?).
Not sure how much help that will be to you.
Regards, Mike.

Equilibrium_TBC,
Where are you seeing £3 in the last year? Using the Charts button above, with the timescale set at 2 years, the highest it's been in the last year or so is about £2-58 in Dec 2019 / Jan 2020. That was a result of a dramatic rise up which was probably the result of their RNS announcement of 9 Dec 2019 "Statement regarding Asia". That's probably the bulk of your 51p added value. And those prices were, of course, before the effects the COVID-19 pandemic had on the markets starting a couple of months later.
Mike.

Hi again Pantherm100,
Sorry I've now lost track of which of your posts I'm replying to!
I once saw it written:-
There are companies run *by* their management, and there are companies run *for* their management.
I'm sure everyone will have their own opinion here...
All the best, Mike.

Pantherm100, you *not* been burned.
Did you read Tesco's RNS, as I suggested in an answer to another of your posts, where it makes it absolutely clear that the 50.93p dividend is on the number of *old* shares, not the number of new shares?
Mike.

tom1,
I think you're absolutely right that if you automatically reinvest the dividend in more shares the price will probably be slightly higher because of all the buying at the same time. However, the broker charge/commission, if there is one at all, will be very small. Whereas if you took the dividend as cash, and used it to buy more shares at a time of your choosing (eg when the share price is lower), the broker charge would be higher. A bit of "swings and roundabouts"!
Regards, Mike.

Agreed Trojan. Now there are 7,731,707,820 Tesco shares in total, whereas last week there were well over 9 billion.
These "new" shares are "bigger" than the old ones -"par value" (aka nominal value?) 6.3333p, whereas the old ones were 5p.
Mike.

Hi Pantherm100,
If you read Tesco's RNS (Regulatory News Service) announcement of 25 January at 07:12, "Notice of General Meeting", it should all be clear in there. Press the "RNS" button near the top of the screen, and all their announcements are there, in date order.
I hope that helps,
Mike.

Pantherm100,
You don't receive the dividend until 26 February. Are you still "down" once you take that into account? Obviously I don't know how many "old" shares you owned, but the dividend will be that number times the 50.93p.
Mike.

Pantherm100,
How do you work that out?
Mike.

Pantherm100,
What you are missing is the fact that (if invested) you will shortly have a very large dividend (cash) in your pocket. They have not "pocketed the sale proceeds themselves", but they are passing a majority of them directly to shareholders via this special dividend. The remainder have been used for corporate purposes such as reducing the deficit in the pension fund. The consolidation of the shares from 19 to 15 is arguably something of a red herring; you will still "own" the same fraction of Tesco as you did before, because the *total* number of Tesco shares reduces (and in fact has now reduced) in the same proportion.
Rgds, Mike.

jonny,
Your price for Monday of £3-04 doesn't reflect the fact that the "old" shares should have gone "ex dividend" by then (and thence fallen to about £1-89 as a theoretical price). Whilst the special dividend event and the consolidation event are said to be happening at the same time, my belief was that the 50.93p per share dividend is being paid on the "old" shares, not the "new" shares. The old and the new shares are different "classes", if that's the right word, with different "par values" (one being 5p and one being 6.333333p). The £1-89, multiplied by (19/15), gets you back to about £2-40 per New share - everything else being equal. Of course, all this doesn't happen in a vacuum; as another commenter has said, the price we see on Monday is then also subject to the vagaries of "the market".
If I have got this wrong, I stand to be corrected (and probably out of pocket...) on Monday morning when we see the price of the "new" shares.
ATB,
Mike.

Tigra,
Thanks for sharing this.
In my own case, it is consistent with my own "belief" as to what's happening (I prefer "belief" to "understanding"...).
ATB,
Mike.

lti,
Thanks for the various recent responses/comments to me in the thread below.
Mike.

Nigel,
Finally, this should explain it all:-
https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/hs284-shares-and-capital-gains-tax-2020
I'll stop now before anyone reminds me - rightly - that this might be going a bit off-topic.
ATB, Mike.