Tesco Share Discussion Threads

[genises] 30/1/2017 12:18

The facts are inflation is going to hit both companies big time.
less spending power for the consumer to go out,let alone go shopping.

[portside1] 30/1/2017 12:07

our can investors buy on what info ..

wait and hear the real news and facts which we have none

[portside1] 30/1/2017 12:05

very rare to see a share price fall so much on such news . so its not all what you see and hear at Tesco .
no clarity on anything but you will see big bonuses paid out soon .

September 2014 share price 252p

feb 2017 share price 199p

that about sums it up then take a look at director deals

[anony mous] 30/1/2017 12:04

Why all the downbeat negative posts?LAZYSIDE won't be happy. Lol.

[portside1] 30/1/2017 12:00

the deal as done nothing , its clarity that lewis needs to give so far its all nothings

[alphahunter] 30/1/2017 11:55

Again, inasmuch the take-over makes perfect strategic sense, the market reaction was way way over the NPV of the synergies after tax.
Tesco is a heavy £15bn market cap company that somehow shoot up by 10%+ thanks to a more nimble £3.2bn market cap. Besides, Booker sold itself at fairly racy ratios imho.

A level 2 investigation means one extra year before the deal is consummed, that is another 5% off of the combined valuations.

[genises] 30/1/2017 11:54

It going to be a tough few years not just for the investor in retail but also the consumer.
With inflation creeping up this month on food due to the pound devaluation.
Profits will reduce as companies will require to take some of the hit on its margins, while the consumer will cut down on what is brought and buy more of what is on promotion.
prices will continue to rise effecting consumer buying power.
Just saying a few facts which will happen this year unless the euro drops in value which could happen if another country exits Europe.

[vaneric1] 30/1/2017 11:37

Look at the volumes, the price is being manipulated down by adding tiny numbers to the book, shorters who were burned by the surprise news last week trying to recoup their losses.

[portside1] 30/1/2017 11:34

lacking clarity ,

[woodpeckers] 30/1/2017 11:29

portside, Charles Wilson has £222m worth of shares which he has committed to lock up for 5 years! Just how much faith do you expect him to show???

[diku] 30/1/2017 11:04

porty..that rise was sold into...the purpose of doing a deal is to muddy the figures for the next few years...the winners are the insiders, advisers & investments bankers getting their commission....

[portside1] 30/1/2017 10:48

WELL no director buys that tells me that they have no faith .

[balbains324] 30/1/2017 09:46

LOOOOOOOOOL

[ladeside] 30/1/2017 09:01

You can't "ramp" a 17 Billion MCAP blue chip on a free share chat board for gods sake !!!

[anony mous] 30/1/2017 08:34

Where are all the rampers gone ?

[woodpeckers] 29/1/2017 19:43

I agree graham, the more I read about Lewis, the more it looks like an ideal partnership. I have to admit to being a bit surprised that Charles was prepared to do this deal initially. Not because he has a large ego, I don't think he does, simply because having brought Booker to where it is from where it was, he must have lived and breathed the company so I'm sure he sees it as his 'baby'. Handing over ultimate responsibility is a big deal. He would only do this if he really believes it is the right way forward and he would only entrust it to someone that he feels sees the same way forward

[grahamburn] 29/1/2017 18:43

Lewis and Wilson are the same age and Lewis has only been in situ for a little over 2 years.

IMO Wilson does not show the necessary abilities to run a marketing operation which is a prime requisite in a supermarket which is consumer-facing - he is more a logistics man. Ideal partnership for the foreseeable future which is, given Wilson's share lock in, at least 5 years + (may well take up to a year from here for the deal to be sealed).

[albert3591] 29/1/2017 09:16

Lining up the new man for the time lewis leaves.

[grahamburn] 28/1/2017 21:22

The presentation (on the TSCO website as well by the way) was very informative and/or enlightening on many aspects of the takeover (oooops, "merger"). There has been considerable work and co-operation on developing the rationale for it and most of it stacks up.

Not having seen Charles Wilson before (though obviously knew about him as a No. 2 in his previous roles before his re-emergence at Booker for the second time), I now concur with your comment that he may not be quite as self-confident as Dave Lewis who is a supremely relaxed and confident communicator. Indeed, towards the end of the presentation, Wilson seemed to relax more when he indicated that he was more than happy to work under Lewis - and genuinely seemed to mean it. (The Telegraph can't have been at the presentation or watched it).

IMO they should make an effective partnership as well as a good double act at future presentations, driving the synergies through without losing the identities of any of the constituent parts.

Similarly, they seemed reasonably confident that the deal will be waived through by the CMA. It was emphasised by both of them that though there has been a number of references in today's press about the effective doubling of the convenience store market "under one roof", both men emphasised that Booker only have 9 of their convenience stores under their direct control - hardly a competition issue, then. That is a relief.

Just hope that the prospective re-introduction of the TSCO dividend proves sufficiently enticing to BOK shareholders who, it would seem, have grown used to reasonable returns in recent times.

[woodpeckers] 28/1/2017 16:54

Hi graham, not sure 'large ego' is a fair description of CW (don't know DL). Have you watched the presentation that the two did on Friday morning, if not it's available on the BOK website and is really worth taking the time. The two men have known each other a long time and though CW could be described as obsessed about work it sounds as though he feels quite comfortable working alongside DL.

[grahamburn] 28/1/2017 15:37

Doubt if Dave Lewis will take kindly to that simplistic article! Why would he have done the deal if he was on the way out?

However, assuming the deal isn't scuppered by the CMA, then it will be interesting to see how two retail stars with large egos will work together over the next 5 years.

It will either work incredibly well for the combined business and its shareholders who will be celebrating in 5 years time (Wilson's timescale?) or Richard Cousins will prove very wise for resigning 3 weeks ago. Mind you, he has a large ego himself as well as a glittering history in the catering/food business.

Pays your money, make your bets and see how the cookies crumble.....

[woodpeckers] 28/1/2017 14:02

This deal is all about Wilson. The fact that he has committed to five years is unbelievably good news for Tesco. Would love to project 5 years from now, Tesco will be a whole different company.

[o1dsmokie] 28/1/2017 09:41

If you think Tesco is a shopping nightmare try Budgen or Londis and realize it can only get worse!