Tesco shares hammered

Glen_Clark

Rupert_Bear wrote: »

I assume now its not only big price drop but big share drop as well. Think they got that wrong. In my home town their are now 14 Tesco's. Its good to see them getting some of their own medicine. Lets give the small traders a chance.

High street traders are all very well for those who can afford High Street prices, but, as has been proven time and time again, shoppers vote with their feet and most prefer supermarkets, Tesco more than any other, even though it has become fashionable to knock them.

I am old enough to remember what shopping was like before the supermarkets, when we only hasd small shops. Shopping was a miserable experience I can tell you.

Glen_Clark

ses6jwg wrote: »

Personally, I think people are starting to wake up to the fact that Tesco takes them for granted as customers and assumes people are stupid and people will continue to come back regardless of how they are treated.
.

Sainsburys and Morrisons seem to have been doing more of that than Tesco last Christmas. The biggest insult to our intelligence must be Sainsburys Price Promise. What it means is that, at some stores only, if you could have bought your items cheaper down the road, we will not give you the difference, but instead a voucher, with strings, that you can use within a time limit unless, as we hope, you will lose the voucher.

Morrisons have had a checkout lottery where, in the unlikely event that you remember to keep your ticket and look it up in the store or online, you have an astronomically small chance of winning the price of your shopping

Tesco's biggest mistake last Christmas was to over estimate the intelligence of their customers.

BoGoF

I'm thinking of getting myself a piece of the action. Anybody recommend a low cost way of acquiring the shares?

sabretoothtigger

I remember a few of the shops where they'd fetch the stuff for you If you home shop they are basically doing that for you

I didnt buy just because of the dividend but forecast earnings are estimated so it doesnt mean they are cheaper to buy now on that basis
Seems they are both quite similarly placed but I preferred the chart for SBRY, I own both.
I was relying on TSCO to benefit from being diversified and also to expand laterally into new markets with their customer loyalty schemes that seemed quite successful but apparently not enough and the new guy has maybe taken the wrong direction in not capitalising more on that maybe

Neither is overvalued but retail is an obvious sector to suffer great worries hence the prices of both reflect negative sentiment more then terrible results

I agree with Questor that they are a defensive share like a utility, can be unpopular and boring but they arent likely to suffer especially. I sold some Lloyds to buy this

the company's valuation is backed by £10.9bn of property, compared with its £5.7bn capitalisation

BoGoF wrote: »

I'm thinking of getting myself a piece of the action. Anybody recommend a low cost way of acquiring the shares?

I put any offers I see in the stickied share thread above this one

Glen_Clark

BoGoF wrote: »

I'm thinking of getting myself a piece of the action. Anybody recommend a low cost way of acquiring the shares?

In the short term the cheapest way is to have a CREST account where the stockbroker holds shares for you, and your money in their account earning little in the way of interest. Often offering a free service to get you hooked, then introducing an ever increasing quarterly fee. If you want to buy and sell in the hope of a short term rise in share prices this is the best way to do it. Personally I think thats a mugs game for a small investor, so I only buy with the intention of holding them long term. At least you have a better chance of recovering the taxes and charges.
So I prefer to keep the share certificates myself. The charges may be higher initially, but you only pay them once and you remain completely free to shop around for the best deal when you sell them.
I am currently paying 0.75% through Skipton Sharedealing for this. But I am always glad to hear of a better deal.

Ifts

With SBRY you have got the large share holding by the Qatari government's investment fund, and each time the city rumour mill starts with rumours of a possible bid being launched by them pushes the price up, then when the news dies down so does the SP. Over the years its been a good one to dip in to their shares at a low point, wait for the next take over rumour and take your profits, repeat where & if possible!

TESCO I like to hold for long term as it does not just rely on the UK, at the moment I think its a good opportunity to top up.

Tom_Pickering

Glen_Clark wrote: »

nobody had inside knowelege to sell before it was announced, as it usually the case. So the small investor without inside knowlege, gets a fairer chance.

Not all the top brass....

Tesco UK chief dumped shares worth £200,000 ahead of 20% sell-off

http://www.thisismoney.co.uk/money/markets/article-2086364/Tesco-shares-UK-boss-Noel-Bob-Robbins-dumped-shares-ahead-profit-warning-20-sell-off.html

lvader

I bought back into Tescos today having sold my holding a few months ago. I think Tescos will be fine and I expect the share price to recover.

Ifts

£200k share sale not a great deal when your holding is worth £4m plus.

Also couple of articles in the Guardian about this:

Tesco's UK boss sold shares days before profits warning

Tesco's Clarke should have stopped executive's share sale

IronWolf

Ten98 wrote: »

Finally, to answer the previous posters concern that investment in the company is cap ex. and should not equal lower profit? True, but in Tesco's case it does, as you can't spend money on refurbishing shops without at least partially shutting them, and you're not allowed to build a new shop in the UK without closing or demolishing an old one, so any serious investment in the UK costs both in terms of cap ex. and revenue at the same time. This level of detail is sadly stripped out of news articles.

Ah that's a good point that I hadn't considered. And is very encouraging for us shareholders because store closures mean its not a long term drop in profits and the year after should see the profits bounce back.