Tesco shares, when to buy?

Minrich

robin58 wrote: »

Blind optimist. And you have kept your shares for too long.

The minus to Tesco is they have too many large out of town stores which customers are stopping going to.

The only reason they hold a 28% share of the market is because they have more shops than anyone else. Where ever you look, there's a Tesco

I have in my town 1 Tesco Extra and 9 Tesco Expresses. My town is not that big.

Plus A large land bank which they have had to write down in value.

They have one site in my town where they were going to put another Tesco Extra but shelved it and then rented out the site to The Range.

More negative stories WILL still appear because as a large player in the food market, they have been caught with their trousers down.

Any turn around to Tesco is going to take years not a few months to sort out. A sort out of personnel and some being shown the door will happen.

Just so people know, I remember when Tesco used to give out Green Shield stamps and their shops made the CoOp look like Waitrose.:rotfl:

We didn't buy shares to then sell them , we bought them to benefit from the dividend . You say we have kept them too long and know nothing about our holding and how many we hold and what other investments we have !
My wife works for Tesco and they will be paying her pension in retirement we like to support them as negativity is bad for a company and people quite willing to slag them off for no real reason . To make 5.6% in retail on something sold for £1 is not unreasonable margin and hardly extortionate ?
Tesco employ 320000 in this country and if each one of those employees pays £1000 a year in tax that is £320,000,000 in tax revenue , add nat insurance etc and the contribution Tesco makes just as an employer is huge .
As i have said before they still have 28% of the sector and we have more Co-ops in my town/area than Tesco expresses and superstores .
People who slag off British success are odd but only doing it to fit in with what they think everyone wants to hear and spouting media hyped issues . We do the same with our sports stars given an opportunity , footballers a great target , jealousy is one reason but why do we take it all in and think that ALL footballers are rapists etc ? Tesco do plenty of good too but we only focus on the bad , one of this countries biggest problem and a real morale sapper for those concerned .
I was a Police Officer for 30 years , my skin is very thick , the media slag off the police at every opportunity and rarely report positive stories , that gets you down as it has every Police Officer in this country lately . Same for Tesco staff too , thats why they might be a bit grumpy when you see them , keep calling a human bad things and eventually they will believe it .

C_Mababejive

I too agree with another poster that rumours of Tescos demise are just that.

It is the current media whipping boy. There is a mega Tesco near me and Asda Have just opened a megastore nearby. Now you would think that the Tesco store would look a little quiet but not a bit of it. The car park is still busy and so is the store . Of course they didnt let me go over the books but Tesco will be back. The question is of course when to call it?

I have no doubt that the vultures are swooping and massaging the situation to rake in a big profit on the lift.

The crucial post xmas sales figures are on the horizon and tesco will see this as a possible positive note if they can capture the moment.

So should you buy as a small PI or let your fund manager make the call?

I'll let you know..i do feel there will be a further pre xmas dip.

Porcupine

I had a look - was curious about them as a property company rather than this groceries lark, after all they own rather a lot of land. Unfortunately there's complicated debt all over the balance sheet, to the extent that I couldn't work out the facts of what was going on (I'm no accountant). So left well alone.

easilyparted

Thanks for your replies, I will wait until post-Christmas figures are out before buying. I keep hearing that £6 of every £10 spent in the UK is spent in Tesco, hard to believe but even harder to believe that Tesco is stuffed.

Mee

PeacefulWaters wrote: »

It's a dog.

a dog's dinner of a company?
I don't do shares, but based on my experience of the local superstore - the company needs some therapy for its staff who are downtrodden, and managers who keep circumventing trading standards on use by dates!

Doshwaster

easilyparted wrote: »

Thanks for your replies, I will wait until post-Christmas figures are out before buying. I keep hearing that £6 of every £10 spent in the UK is spent in Tesco, hard to believe but even harder to believe that Tesco is stuffed.

Tesco's market share is nowhere near that high. Even at it's peak it only had about 30% of the UK grocery market (and that's a lot different to being 60% of all UK spending!)

http://www.bbc.co.uk/news/business-16817254

Thrugelmir

Porcupine wrote: »

I had a look - was curious about them as a property company rather than this groceries lark, after all they own rather a lot of land. Unfortunately there's complicated debt all over the balance sheet, to the extent that I couldn't work out the facts of what was going on (I'm no accountant). So left well alone.

I agree with your sentiments. Going to take some months for the fog to lift. As the new Chief Exec has plenty to address.

Ryan_Futuristics

Well personally I stopped using supermarkets years ago ...

Online shopping became more convenient; getting 'speciality' items like gluten-free pizza bases is hit-and-miss in supermarkets; and with everyone trying to save money, buying food in bulk straight from manufacturers saves an enormous amount (I'd say I've cut parts of my food bill by 70-80%)

Now it seems more people are cottoning on to this, and for the younger generation it's second nature to order food online from Amazon or Ocado

So from my perspective, Tescos' business model is already redundant

What I think you've got with Tescos is a potential value trap ... A successful past, a big name, rock-bottom prices ... but can they turn things around? For me: it's a gamble

Radiantsoul

Ryan_Futuristics wrote: »

Now it seems more people are cottoning on to this, and for the younger generation it's second nature to order food online from Amazon or Ocado

Those are two mature business without much in the way of profit though.

Thrugelmir

Porcupine wrote: »

I had a look - was curious about them as a property company rather than this groceries lark, after all they own rather a lot of land. Unfortunately there's complicated debt all over the balance sheet, to the extent that I couldn't work out the facts of what was going on (I'm no accountant). So left well alone.

Appears there's £16 billion of off balance sheet liabilities. That will come on balance sheet in 2016 when new accounting rules come into force. Seems as if Tesco's is going to need to raise capital. Question is how much.