Tesco shares, when to buy?

Glen_Clark

Thrugelmir wrote: »

With no superstore leases either with break clauses or expiring until 2019. There's an awful lot of unprofitable space on the books. That will cost money to convert to more profitable use.

True, but they seem to have the best store locations. (we travel Europe in a motorhome, and when we drive into a new town looking for groceries, its invariably the Tesco we stumble across first.)

Credit-Crunched

Thrugelmir wrote: »

Final dividends has been cancelled. Rumours abound that Tesco's will have a rights issue to raise cash. With no superstore leases either with break clauses or expiring until 2019. There's an awful lot of unprofitable space on the books. That will cost money to convert to more profitable use.

I was told that I was mad to buy at 169, yes the underlying financials are not too clever at the moment. However as a 10+ year share, I see value.

hyposmurf

Problem with some of the mid/eastern European Tesco stores I've been is that the quality is worse than in the UK, but they charge the same as the UK for goods.People tend to use other discount supermarkets or home grown produce.They've announced a number of closures in Czech and Hungary so far.Dave appears to making some good decisions, cutting out non profit making stores/ventures.Good to see some improvement in the share price,Long term though I stil can't see how they will turn it around to compete with the others such as budget stores such Lidl, Aldi or at the high end such as Waitrose.

Gadfium

Minrich wrote: »

So the Tesco employee SAYE option price was released today - £1.50

Also they have increased the amount you can save per month to £500

So we will be opting for the £500pm @ £1.50 for the next 5 years . Cancelled the others we had running which had option prices of £2.82 - £3.86 and got the cash back from them .

So in 5 years we will have £30k with the option to buy shares at £1.50 a share - We think thats a no brainer - Even if the shares are worthless we will have the £30k .

Your views ?

Do it. you've very little to miss out on.

Last August BT's Sharesave 10 matured. people had the option to buy at £0.61. Anyone that saved the maximum of £225 per month are, at todays prices, sitting on an increase of over £80,000.

Minrich

hyposmurf wrote: »

Problem with some of the mid/eastern European Tesco stores I've been is that the quality is worse than in the UK, but they charge the same as the UK for goods.People tend to use other discount supermarkets or home grown produce.They've announced a number of closures in Czech and Hungary so far.Dave appears to making some good decisions, cutting out non profit making stores/ventures.Good to see some improvement in the share price,Long term though I stil can't see how they will turn it around to compete with the others such as budget stores such Lidl, Aldi or at the high end such as Waitrose.

But is there a reason they need to compete ? They have 29% of the market as it is , even if that dropped to 25% that is still a fantastic share . There are many people who shout about Aldi/Lidl but anyone who values their time and isn't that bothered about the price of things they will go to the place they can get everything.

Once Tesco gets rid of their discounts offers 2for1's etc thimngs will improve and regain some lost shoppers and with some good advertising they will grab back some more.