Tesco Share Discussion Threads

[philanderer] 29/1/2019 12:25

Shore Capital: Tesco undervalued

News of potential job losses at Tesco (TSCO) is ‘unsettling’, but Shore Capital says if earnings forecasts remain on track then the stock is ‘undervalued’.

Analyst Clive Black retained his ‘buy’ recommendation on the stock, which fell 1.7% to 221p yesterday after weekend newspapers reported that up to 15,000 jobs could be at risk.

‘If full-year 2020 earnings estimates remain intact, there may be upgrade potential should a number of recent headwinds faced by the business become tailwinds, if so then the stock appears undervalued to our minds,’ Black said.

‘With strong free cash generation, there is scope for the group’s stated dividend cover target of two times to be reached sooner rather than later, with scope for special distributions and/or buy-back activity.’

[tim 3] 29/1/2019 08:47

Supermarkets no longer care about customer service or their staff imo.

Empty shelves, long queues at checkouts only self service tills open are now common place in all of the big 4.

The problem is they are taking on the discounters in a war they can not win.The cost base they have will always be lower.The more you take away the additional benefits you get from shopping at traditional supermarkets the less reasons customers have to shop there.

[philanderer] 29/1/2019 00:15

'ALEX BRUMMER: Fake service from Tesco as it seeks to future proof itself from the onslaught of the discounters'

[philanderer] 28/1/2019 18:16

Tesco positions itself as merger threatens dominance

Sky's Ian King explains the many reasons behind Tesco's latest shake-up, saying there are many pressures ahead.

[philanderer] 28/1/2019 18:09

:-)

David Buik @truemagic68

1 hour ago

MEDIA in UK having a field day over food shortages post 'NO DEAL BREXIT' - shades of rationing in 1945 - I egg, 2 rashers of bacon & toad-in the-hole once a week as a treat & two gobstoppers, OMG! No government contingency plans to beat no cooperation/help from our neighbours?

[philanderer] 28/1/2019 17:40

The UK's largest chain hopes to redeploy around 4,500 of the staff affected by the latest cost-cutting measures across the UK.

[intermale] 28/1/2019 16:27

The customers should get the 10/20% discounts!

[ladeside] 28/1/2019 16:26

C&A are doing great throughout Europe, away from the corruption and greed of this godforsaken country......

[vaneric1] 28/1/2019 16:19

They could bury their heads in the sand and follow the example of Woolworths BHS and many others or walk away like C&A Littlewoods and others or get control as they are trying to do.

Of course if Mr Corbyn gets the top job it won't matter anyway because he'll nationalise the bloody lot. :-)

[intermale] 28/1/2019 16:09

Good -we will then see farmers paid for their toil and High St, outlets returning, nobody wants to buy ready meals with chicken from Asia ffs, terrible admin!.Irish beef, why?

Sainsbury boast of ALL their chicken being UK sourced,Tesco fiddling their books didn`t help the share price either, seems nobody was responsible for that.

[tim 3] 28/1/2019 15:51

Yes that's an awful lot and can't see what the exact proposal for counters is other than 90 are closing.

[tenapen] 28/1/2019 15:24

That's a lot !!!

Too many.

[ladeside] 28/1/2019 14:51

9,000 job cuts announced.

[ladeside] 28/1/2019 13:47

I don't disagree logan but it's just the nature of the beast nowadays.

Under 5 years tenure, says it all for me.........

[loganair] 28/1/2019 10:22

A good leader is far sighted and thinks 20, 40 years ahead.

A good leader is also able to identify the problem, then is able to identify the solution, by learning from what has worked and what has not worked and does not let short term considerations destroy the value or the good that any compasny may have.

A poor leader only takes care of his life now.

[ladeside] 28/1/2019 10:08

I'm sure that will come with Amazon as well.

The problem is that big business is run with such a short term outlook that decisions are made only to give quick wins on the balance sheet which in turn maximise bonuses for those at the top, the long term outlook makes no difference as they'll have rode into the sunset with their millions and won't be giving a damn about the state they've left the business.

Seen it time and time again, but nothing changes..........

[typo56] 28/1/2019 09:57

Tesco played their part in driving out indepedent butchers, bakers and fishmongers. It would be like Amazon deciding they no longer want to sell books!

[danny baker] 28/1/2019 09:20

Tesco's spokesman yesterday was saying that they were looking at ways to run the business more simply and efficiently. From a profits perspective you could argue that Tesco has been pandering to the middle classes and as a result has moved well away from Jack Cohen's philosophy of pile it high and sell it cheap. Selling almost everything pre-packaged in a protective atmosphere (nitrogen) means up to 3 months shelf-life for cheese not a maximum of 1 week and cutting waste to almost nil. Not good for me as a shopper but facing Aldi and Lidl I can understand why they want to do it.

[ladeside] 28/1/2019 08:54

Great news for the 15,000 + staff.............

[manics] 28/1/2019 07:24

Wastage as a percentage I'd suggest is far higher on the counters. Then you have to fund the man hours to keep the things clean.

[danny baker] 27/1/2019 22:12

Tesco aren't downmarket - well certainly not in North London. I use the cheese counter for Gran Padano and a selection of quality English cheeses. The fresh fruit and veg is excellent - including organic curly kale and baby spinach. Waitrose can't compete. I can understand though how the top brass think the fish, meat and deli counters are too expensive to maintain. I'm a late night shopper so the fish and meat counters have already shut at 9pm but there is a huge amount of cleaning that goes on afterwards. All the ice in the fish counter has to be removed and the counter swilled down nightly. The amount of grease that comes out of the chicken rotisserie has to be seen to be believed. The cheese counter after 9pm is unmanned but freshly cut cheeses are available wrapped in clingfilm together with the olive bar - hugely attractive to upmarket shoppers like me who love anchovies, sun-dried tomatoes and olives. Tesco probably think they can switch to pre-packaged cheeses with long-dated expiries to cut waste. For Tesco it's a trade-off - lose the counters which probably lose money overall but also run the risk of losing their wealthier customers.

[typo56] 27/1/2019 16:36

Looks like they're moving down market, or simply recognising they are down market. Sounds like a business run by accountants. I mean, have they costed their meat, fish and delicatessen counters in isolation? Have they really taken account of the reduced footfall they'll get and therefore less spend elsewhere in store?