Tesco shares, when to buy?

Glen_Clark

Whats happened to all the Tesco haters who were telling us to sell at £1.70?
Crying into the 100% Horsemeat Aldi 'Beef' Lasagne they found at the bottom of the freezer

dealer_wins

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 ?

Belated reply, but this could be your dream ticket if they manage to turn things around!!

My partner has a similar sharesave for Lloyds at 40p I think.

kangoora

As you say, a no brainer. Worst case you get back the money you saved less a bit of interest you would have got, or stock market growth if you'd gone that route.

Myself and a lot of colleagues did very well out of the BT one which matured last summer.

http://www.theguardian.com/business/2014/aug/01/around-23000-bt-staff-share-scheme-windfall

m500dpp

Sharesave schemes are the only investment where you cannot lose (other than a paltry bit of interest).

I have Tesco within my pension fund and expect them to do well - Go to Tesco.com and look at Drastic Dave's 90 minute shareholder presentation, There is an awful lot being done in Tescos, I have some Sainsburys chares and am more worried about them they seem to be drifting along and not really doing anything.....

Glen_Clark

m500dpp wrote: »

I have some Sainsburys chares and am more worried about them they seem to be drifting along and not really doing anything.....

Sometimes doing nothing is the best course of action.
But overpaid Directors sometimes feel they have to pull a rabbit out of a hat to justify their astronomical salaries.
As the gap between rich and poor grows wider, middle of the road grocers like Tesco are losing customers at both ends. The least worst option is to accept it and downsize - which at last Tesco seem to be doing.

Minrich

I think Tesco could quite easily compete with the low end within their existing stores by redesign and allowing the Adli/Lidl type shoppers to do all their shopping in one place. Reduce some of their lines to facilitate more space , someone said somewhere they sell 200 types of bread for starters !

Credit-Crunched

dealer_wins wrote: »

Belated reply, but this could be your dream ticket if they manage to turn things around!!

My partner has a similar sharesave for Lloyds at 40p I think.

Too right, I'd bite their hand off and do the full whack each month!

Contrary to most advice on this board and the papers, I piled into tesco @ 169, sold 25% my holdings at 220 at a nice profit.

Now keep the rest in for long term, hope the divi increased with a 338 sell order in place.

I did the same for BP when the oil spill happened.

racing_blue

Glen_Clark wrote: »

Sometimes doing nothing is the best course of action

Generally doing nothing is best, I would say.

Buying or selling, on average, is as likely to lose money as make money (efficient market theory) plus you pay the broker.

Thrugelmir

Credit-Crunched wrote: »

hope the divi increased

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.

Glen_Clark

Minrich wrote: »

I think Tesco could quite easily compete with the low end within their existing stores by redesign and allowing the Adli/Lidl type shoppers to do all their shopping in one place. Reduce some of their lines to facilitate more space , someone said somewhere they sell 200 types of bread for starters !

Well of course thats what they try to do with their value/essentials/basics range.
I doubt they would have 200 types of bread in the same store or country - they tailor their offer to suit the local market - the range on offer looks quite different in parts of Bradford for example, where there is a bigger demand for Asian food. But its these fancy breads etc where they make their profit - when they are not so widely available you can charge more.