Member Info for Reader61

Way too low - will vote against

Solvent - I don't think so:-

EBITDA -4218M GBP

Pfen, reckon you'll be alright over the longer term, plus divi should increase if holding, otherwise, what's your exit target?

US inflation results 13.30 isn't it? That'll determine where we go today.

Why has this not dropped back to 130/40's given nothings been forthcoming on the bid? Does it hopefully imply somethings going on under the bonnet to agree a deal? Lets hope.

Petty though it is, I don't think the name Avast is very marketable, it sounds foreign and boring in comparison to Darktrace which sounds like it is something from 007. Just saying :0)

What might the effect of the Darktrace IPO be? Might some monies get diverted or shares sold from AVST to fund purchases there or will it lead to renewed interest and an upswing in price?

No pun intended but they seem "Boxed in". Attempts at expansion beyond their market share into other countries or industries, eg banking seem to have gone wrong. So, they need to be the best in niche, i.e. grocery. Also consider it's not just Aldi/Lidl that's a threat but Ocado/Amazon. The technology of one has allowed diversification into becoming a tech company and massively streamlining the efficiencies of competitors to TSCO. The other is already a tech company with massive and successful diversification about to head into the TSCO markets a nibble at a time.
I shall take profit if we do get to the £3 mark and reduce holdings by 75%.

The date of results is very apt!! Lets hope they aren't fooling us any more than they have already. This share is a disgraceful parody of what it should be.

Aviva robbed you of the dividend bowing to the graces of gold plated pension civil servants in the PRA who do not have to rely on such tawdry things as dividend income. L&G however decided that was unfair to their shareholders and paid out, knowing they have enough cover to do so. Plus for my money they are far more innovative and entrepreneurial than Aviva.

Why not, it's a real case? Strikes me as being a little like PPI. Not taking the risk myself so am out for now.

I see they're just about to open a London grocery store with no tills and where tech handles all payments from your account using an app. Might the legendary retail ravager be a threat longer term to Tesco?

What does this mean? Will shareholders of record on ex dates be the only ones to get this pot or will any and all new shareholders who jump in randomly benefit? Does it even mean it will be paid out? I mean, it's all very well to accrue but depending on how the accounting is done PRA rulings on profits might mean it never pays out. if there is a massive dip will this pot again be sacrificed meaning shareholders are screwed again.

Good job for a nationalised industry you mean! It's about time this lot grew a pair and ran the company as a private business.
So much for light touch regulation. US banks paid dividends throughout the pandemic. Shareholders are a different breed over there I suspect and wouldn't tolerate the behaviour.
Whilst prudent to make provisions, the drop in profits and subsequent miniscule payments to holders is the result of excessive caution. I wonder if AHO etc are actually paid on another metric than profit?

Good job for a nationalised industry you mean! It's about time this lot grew a pair and ran the company as a private business.
So much for light touch regulation. US banks paid dividends throughout the pandemic. Shareholders are a different breed over there I suspect and wouldn't tolerate the behaviour.
Whilst prudent to make provisions, the drop in profits and subsequent miniscule payments to holders is the result of excessive caution. I wonder if AHO etc are actually paid on another metric than profit?

Posters keep stating that the dividend policy will be more generous as less shares to spread amongst. That is NOT the case. The dividend pot is defined in terms of an amount, eg xyz Billion. That is then divided by the number of shares but whilst the amount per share is higher after consolidation, remember you now have 15/19 shares so receive the higher amount on less shares, net result = EXACTLY SAME.
It does have the effect of making the yield look higher so we may go from 4% to 5.5% but that's a reason to not increase the dividend in future, yield already high enough. It will also look attractive to new purchasers and be good for raising capital in future fund raising offerings . In short, it's good for TSCO but of little/no benefit to PI's.

Going to sell my normal share holdings but keep ISA/SIPP positions. Thus, I shall simplify my calculations for the 2021 tax return and also hedge my bets on what happens. I do agree with the previous poster who said it's by no means an SD. TSCO have done nothing to increase our wealth here, simply given us a messy tax position and will incur future dealing costs as we redeploy the proceeds. I'm surprised the big II's aren't squeaking but they'll probably spin it to their holders?

Sure :-
https://www.which.co.uk/news/2020/11/four-major-capital-gains-tax-changes-the-chancellor-is-considering/

I suspect now that more and more of us are trading shares because of awful returns on savings, then this seems entirely logical. It's nasty because we have already paid tax on the money when we earnt it and matters could be compounded by also cutting the ISA/Pension allowances too. Of course, if you have a final salary pension - no worries at all.
Furthermore, IF it does happen, it won't go away - a bit like vehicle tax that rises every year and when they lose out on that, they raise the idea of rod pricing.
Hopefully and I really do hope that wealth taxes are not introduced - that would take a fortune from us indeed.

Eye_Wink - some additional thoughts for you, as I am in the same position although a lower tax band one.

1. Speculation is the CGT tax free amount will be reduced significantly from the £12,300 currently enjoyed (rumour £2,000). CGT rates of Tax may also be aligned with income tax for the next tax year, thus 20/40/45% depending on your marginal rate vs the current 10/20% for basic/High rate payers.
If you sold now and made a CGT loss (you said your underwater on shares presently), I'm reasonably certain that loss can be carried forward into the next tax years (not sure how many years you can do so but believe it's multi year). The benefit being it should mitigate any future CGT gains from profitable sales of other shares/assets (property etc). Of course, this only applies if you become profitable on your folio of shares/assets and then you will be offsetting profits against a potential 40% future tax rate. It might be useful for example if you were to sell TSCO now and then buy back to avoid the dividend tax/share consolidation and to speculate on future gains in the shares.

2. If you take the dividend, your tax rates are either 7.5/32.5/38.1% once you exceed the £2K allowance. Again, it's highly likely these rates will be increased to align with income tax so you may be paying 40% in future on dividends rather than your 32.5% from this tax year.

3. Can you put any more contribution into your pension, eg if you moved the TSCO shares into your SIPP (or were to set one up)I think you avoid all tax until income is taken. You will of course pay tax on the income but by then you may be earning less and currently there is the 25% tax free lump sum which may also be under threat though?

So, it's a minefield and the tax situation is just speculation until the budget. Personally, as I can't move any more into ISA/SIPP this year, I'm going to take the 7.5% dividend tax rather than sell my TSCO which are currently profitable and would reduce my rather sad CGT loss position carried forwards from previous years.

Dunno if any of that helps/makes sense?

I'm wondering if the shares may rise up to the 11th? I may sell although I do think they are worth having over the longer term, profits from being one of the few open during the pandemic should be stellar.
Slightly confused about how a trade may be treated for CGT however if I sell before the dividend and buy back after the consolidation? It's a strange scenario as normally a share would dip by at least the divvy but here you have a mechanism in play that turns 19 into 15 shares maintaining the current £2.40 so I could sell the 19 now at that price but will buy back at the same price after the 11th completely missing the 50p??
Confused by this unless the price rises to £2.90 prior?