Future of tesco, morrisons

yatinsardana

Ever since what happened to quindell (ie yesterday!) I've started taking note of what the short selling activity is like in a share. Morrisons has medium short selling activity.... Is that significant or is this a rubbish indicator?

planteria

im not really sure, but the fact that some are predicting a drop sounds positive for 'better value' soon.
Morrisons, and Tesco, could reach the point of being great value plays.
i have been in Morrisons today and i think their food offer, their merchandising, their 'shop in shop' concept, are all quality.
i bought Tesco, BP and HSBC, each twice, after hard dips, and made nice profits. as an aside, i should have held on to my second purchase of BP shares and put them in the 'keep forever' draw.

planteria

according to TopYield, Morrisons are now the 4th highest div yld in the FTSE100:

VODAFONE GROUP 8.92
RESOLUTION 7.15
ANTOFAGASTA 6.84
MORRISON SUPERMARKETS 6.61

are they accurate? are Vodafone really that high!?

Wilkins

planteria wrote: »

are they accurate? are Vodafone really that high!?

That may include the recent return of cash in the share reorganisation, not a real dividend.

yatinsardana

Yeah Wilkins I think you're right. FT says it's paying a 8.8% dividend of 19p per share,although I'm reading analyst expectations and they're expecting dividends to go back down form this year onwards to 11p per share which still gives you a 5% yield to be fair

planteria

8.8% would still be amazing.
i guess they know they can drop back to 5%ish and still have plenty of support. i prefer higher though;)

but back on topic, Tesco and Morrisons are offering good dividends at the moment. and if they get higher, they are worth a slice of, i believe.

yatinsardana

Article on FT on morrisons http://www.ft.com/cms/s/0/381e248a-cb09-11e3-ba95-00144feabdc0.html#axzz2znR7QmBp

If tesco dropped its prices by 2%, it would cut morrisons earning by 70% in 2016 (provided it price matches)

Are people allowed to make such dramatic statements? I wonder how many are actually right.

N1AK

Glen_Clark wrote: »

sounds like you are their only customer

Only to people who can't understand tenses. Hint: could

Not everyone has so little worth doing with their time that meandering to and around the supermarket is a highlight of the week.

planteria

Morrisons 6.57% according to TopYield now.
a further dip in the share price please:D

Glen_Clark

N1AK wrote: »

Only to people who can't understand tenses. Hint: could

Not everyone has so little worth doing with their time that meandering to and around the supermarket is a highlight of the week.

I didn't think I would have to explain it more simply but what you seemed to be saying is that if you changed to online they wouldn't need a store. What I was trying to get across is that they do have other customers they would have to keep the store open for. Which means their costs have increased, because they still have the cost of running the store plus the cost of delivering to you wheras it would have cost them virtually nothing for you to have come into the store to collect it.