Tesco shares...

flashnazia

Tesco has taken a battering again. Anyone else a holder?
I think Phillip Clark needs to go. He's the only full time executive director left. The others have all left (wonder why).
I wonder if I should cut my losses.

Rob_192

Depends what you're looking to achieve. I'm more than happy to hold long term and in fact have just topped up on TSCO. They anounced yesterday that they're holding the dividend and that's currently yeilding 5%. As part of my long term buy and hold HY portfolio, that'll do for me.

flashnazia

Rob_192 wrote: »

Depends what you're looking to achieve. I'm more than happy to hold long term and in fact have just topped up on TSCO. They anounced yesterday that they're holding the dividend and that's currently yeilding 5%. As part of my long term buy and hold HY portfolio, that'll do for me.

On dividend alone it looks attractive but Phillip Clark concerns me. One man can't run the show.

planteria

it is a transitional change, and i like most of what PC has had to say.

i had held in the past, but not currently invested in any grocery, or any retail....i decided Amazon was the best 'retailer' to own. but they have come back to just above what i paid, having sold Tesco at a profit and rolled into Amazon and hovering over taking a 35% profit there too:o

what is the div on Tesco as it stands today?

ktk

Shan't be selling mine any time soon.

Scarpacci

I won't be selling my Tesco shares. I've only built up in the last two years, following their first profit warning, so I'm not sitting on too great a loss but they are down. I have topped up recently and may add more. The dividend yield is attractive, but fundamentally I think they're a better company than they're getting credit for. They're still the dominant supermarket in the UK, by a long way, and have the strongest profit margins. Their international success has been mixed, but it's still good to have some international diversification in the mix. Their Asia business actually has an even better profit margin and has good opportunity for growth, though they're not without problems in a few markets. Their new plan to expand internationally with local partners should buy them more diversification with less risk of another US "Fresh & Easy" calamity.

Above all this, they seem to be the most technologically advanced supermarket and best placed supermarket to deal with a grocery market that moves online. They're the strongest online supermarket, they're growing their click & collect business, they have the Hudl and Blinkbox as well, and they have various plans around their Clubcard (which is the strongest loyalty card). Add to that their continuing success in the express stores. If we are entering a period of decline for the big four supermarkets, I personally think Tesco remains the strongest supermarket to deal with those changes. Still, many might question the wisdom in holding any of the supermarkets right now.

BLB53

I have held for the past couple of yrs. Sentiment towards supermarkets in general and Morrison/Tesco in particular has not been good in recent months and as a result the share price has fallen and, imo offers new investors a reasonable entry point to the 3rd largest retailer in the world.

Of course, patience will be required but investing on the markets is really all about the long term and I am sure Tesco - with or without Phil Clarke - will turn things around and produce good profits and a rising dividend for many years to come.

As Buffett says “The stock market is designed to transfer money from the active to the patient.”

Wilkins

I have held them for over 2 years and am currently 12% down. If they go below £2.80 I may be tempted to top up, simply because I think they have the financial firepower to implement positive change (eventually).

C_Mababejive

I wouldnt be comfortable holding supermarket shares at present. The competition in the UK is fierce and it is turning into a war of attrition. I'm out..

planteria

Scarpacci wrote: »

I won't be selling my Tesco shares. I've only built up in the last two years, following their first profit warning, so I'm not sitting on too great a loss but they are down. I have topped up recently and may add more. The dividend yield is attractive, but fundamentally I think they're a better company than they're getting credit for. They're still the dominant supermarket in the UK, by a long way, and have the strongest profit margins. Their international success has been mixed, but it's still good to have some international diversification in the mix. Their Asia business actually has an even better profit margin and has good opportunity for growth, though they're not without problems in a few markets. Their new plan to expand internationally with local partners should buy them more diversification with less risk of another US "Fresh & Easy" calamity.

Above all this, they seem to be the most technologically advanced supermarket and best placed supermarket to deal with a grocery market that moves online. They're the strongest online supermarket, they're growing their click & collect business, they have the Hudl and Blinkbox as well, and they have various plans around their Clubcard (which is the strongest loyalty card). Add to that their continuing success in the express stores. If we are entering a period of decline for the big four supermarkets, I personally think Tesco remains the strongest supermarket to deal with those changes. Still, many might question the wisdom in holding any of the supermarkets right now.

great post Scarpacci. i think you have it spot on. and, for me, the last point is the key...whether to hold any of them at all. online, are amazon going to move further into food and beat them? or do Tesco have the mix to further strengthen?

Thrugelmir

Amazon are a well known brand but have failed to deliver any level of profits. Recent publicity hasn't done them any favours. If possible I shun them and do my business elsewhere.

The nugget in Tesco's empire may well be it's banking operation. Something it can easily sacrifice space for in it's larger outlets. The financial services arm is being built very quietly and steadily. Current accounts are coming shortly. At which time Tesco's will truly come of age. Start posing a real threat to the established players.