Tesco Share Discussion Threads

[khu1] 05/10/2018 07:20

Today many brokers recommended Tesco shares as a strong Buy. I think Tesco share will be up 10% today.

[knowing] 04/10/2018 13:39

Broker updates

[hazl] 04/10/2018 13:32

I saw an article from December 2017 relating to a chicken processing plant and was amazed to see how many of the Supermarkets sourced their products from the same place.
Aldi, Sainsbury's Marks and Spencer's, Tesco, Asda, Lidl,Iceland .
They were in trouble at the time....since corrected hopefully,for moving sell by dates around,mixing up organic and non-organic and so on.
To think they often come from the same suppliers just makes it crazy really.
Hats off to Tesco who had discovered the problem at the time

[hazl] 04/10/2018 13:19

logonair its common for various large companies not just TSCO and ought to be stopped.

[richsawko] 04/10/2018 12:46

This is a common thene with karge conpanies as they always need cashflow although it is wrong and painful for the small suppliers

[alphorn] 04/10/2018 12:40

That is very strange in the times of almost zero interest rates - it makes little sense, if true.

[loganair] 04/10/2018 12:38

I was listening to how supermarkets often pay suppliers more then 45 days after receiving the product which is in breach of the code of conduct for supermarkets and food suppliers with more then a £1bln turn over.

The only major supermarket group that the regulator mentioned was in breach of the maximum payment time was Tesco, however sadly she said she didn't have the power to fine Tesco for doing this, could only write them a strongly worded letter.

What a con - When I go to Tesco I pay them for the products I'm buying before I've even left the store, then Tesco's holds on to my money for many weeks before paying their supplier which means Tesco's are making money out of just holding my money. I wonder how much money Tesco make out of doing this.

[porsche1945] 04/10/2018 11:57

Whoosh back to 1.50 by xmas.

[skinny] 04/10/2018 07:44

Barclays Capital Overweight 214.10 280.00 - Reiterates

JP Morgan Cazenove Overweight 214.10 265.00 - Reiterates

[johnwise] 04/10/2018 07:40

Why Aldi and Lidl will keep on growing

Aldi has already overtaken the Co-Op to become Britain's fifth biggest supermarket by market share, according to data from Kantar Worldpanel, while Lidl has pipped Waitrose for seventh place. In the 12 weeks to 22 April 2018, Aldi commanded 7.3% of the UK grocery market, and Lidl was on 5.4%.

To put that in perspective, their combined share has grown nearly 80% since the summer of 2013. That's billions extra passing through their tills each year.

[leoneobull] 04/10/2018 04:54

The independent."The City had expected those operating profits to come in £45m higher than the reported £933m, and knocked £2bn off the company's market value as a result".SO hands up who thinks 2 billion off the mkt cap for a 45 million undershoot is proportionate?

[leoneobull] 04/10/2018 04:50

As a buy...

[leoneobull] 04/10/2018 04:49

Someone on lse pointed to the 26 million UT as a bit. Ah, bless!

[philanderer] 03/10/2018 17:04

As of the market close tonight TSCO +6p for 2018


Market report:

Paul Mumford, Citywire AA-rated manager of the £146 million Cavendish Opportunities +
fund, said he was eyeing the fall in the shares as a potential buying opportunity.

'I'd say these results are encouraging,' he said. 'Despite undershooting some market expectations, the company is broadly on track for its medium-term ambitions, has a reasonable cash flow, increased dividends, a solid operating margin, and a lot of good cost savings seem to have been built in.'

Clive Black, analyst at Shore Capital, kept his 'buy' rating on the shares despite the retailer's difficulties in Asia.

'In the big scheme of things Tesco appears to be broadly on-track with its medium term plan and we reiterate our "buy" stance,' he said.

citywire.co.uk

[loganair] 03/10/2018 13:02

Supermarket chain Aldi has said it will open 130 new stores in the UK over the next two years, a move which would create 5,000 jobs.

Aldi, which has its UK head office in Atherstone, said the expansion drive would help it move towards a previously stated target of 1,000 stores by 2022.

The announcement comes as Aldi revealed that sales grew 16.4% across the UK and Ireland to a record £10.2bn in 2017 with full-year operating profit rising by 26%.

[loganair] 03/10/2018 13:01

Aldi looks like they are going to cut prices in their stores that are close to a Jack's:


Aldi signalled it could launch a fresh round of price cuts in its Chatteris store, which is less than a two-minute drive away, in response to Jack’s claim to be the cheapest in town. Aldi spokesman claimed their customers will always pay the lowest grocery prices in the UK.


Jack’s stores will have polished concrete floors instead of tiles to keep costs low.

[philanderer] 03/10/2018 12:51

Tesco's shares have slumped but it's probably just a bump in the road

The grocer undershot the City's forecasts and was punished for it. CEO David Lewis has become the victim of the expectations he has raised

[oiht] 03/10/2018 12:51

Maybe Tesco should resume giving free plastic bags. Lidl and Aldi never have, even before the plastic bag tax. At least that was one reason for shopping at Tesco but even that's gone now! ;-)

[debsdowner] 03/10/2018 12:49

Tesco comments about Jacks laughable and the market know it. Aldi and Lidl are opening 20 times faster than Jack's its too little too late, as some have said about the big four they are dinosaurs now outdated and are becoming extinct.

The real market (shareholders) know this and that is why the share price tanked today, 2.5% isn't good enough at this state of play.

The rate ALDI and LIDL are expanding the big four will lose more market. share yet TESCO hoping to achieve far better margins of between 4-5% may not happen.

[philanderer] 03/10/2018 12:45

Tesco readies advertising blitz for low cost own-brand range

[philanderer] 03/10/2018 12:33

Conference Call did not reassure analysts by the look of it :-S

[loganair] 03/10/2018 12:22

“There’s little for Tesco to crow about outside of the UK and Ireland. It’s clearly having a tough time in Thailand and there are costs associated with its gradual pull-out of Poland,” said Emma-Lou Montgomery, a director at Fidelity International. “With Aldi ramping up its UK expansion, Tesco clearly has an ongoing battle on its hands to retain its number one spot in the supermarket stakes.”



“Tesco is in good shape to go into battle, and the successful acquisition of Booker combined with improved operating performance, means the CEO Dave Lewis will have a spring in his step,” Hargreaves Lansdown analysts said in a note, adding that the fall in the share price today reflects a reality check for the market, given the stock has jumped a fifth in the last year.



Though the profit miss “rattled the market” according to analysts at The Share Centre, they believe that investors who back Lewis’ strategy and are willing to be patient, are likely to be rewarded further.

[loganair] 03/10/2018 12:13

Tesco gives investors reason to shop elsewhere by Carol Ryan:


Tesco is sending investors into the arms of smaller grocers. Britain’s biggest supermarket by sales is charging lower prices in its home market to fend off discounters, making it harder to hit operating margin targets. Plans to double down with the launch of a new chain of bargain grocery stores will make the challenge even harder.

The 21 billion pound supermarket led by Chief Executive Dave Lewis said on Wednesday that it made operating profit of 933 million pounds in the 26 weeks ending August 25. That was below the 1 billion pounds expected by analysts, according to Refinitiv data. More competition in Thailand and changes to Sunday trading rules in Poland made life difficult for Tesco overseas. But the bigger problem is that the operating margins in the main UK supermarket business declined in the first half of the year compared with the previous six months.

Tesco offers a range of bargain products to stop shoppers heading over to German discounters Lidl and Aldi. And Lewis in September launched a chain of discount stores, called Jack’s - a move that Aldi’s UK boss Giles Hurley called “the sincerest form of flattery”. But chasing bargain hunters will make it harder for Tesco to reach an operating margin target of 3.5 to 4 percent by 2020.

Investors’ concern about the prospect of more price cuts looks justified. Tesco is now the highest-priced grocer of the four biggest supermarkets in Britain, and a recent recovery in profit has been driven by savings on operating costs rather than market share gains, Credit Suisse analysis shows. The performance of UK-listed supermarket shares certainly suggests that shareholders view J Sainsbury and WM Morrison as safer bets. These two companies have seen their stock price rise by a third and a fifth respectively since the beginning of the year compared with Tesco’s 4 percent. Lewis is trying to offer consumers good value but investors will prefer to shop elsewhere.

[supermarky] 03/10/2018 12:01

The market is crazy. Tesco worth nearly 10% today than yesterday. This is just stupid.