Tesco Share Discussion Threads

[hazl] 13/12/2019 08:15

ooh good find phil....

[philanderer] 12/12/2019 10:07

How Tesco shoppers can get £70 worth of food for £45 this Christmas

[vas007] 11/12/2019 13:34

Not much movement yet then on Tesco -looking forward to 285

[yf23_1] 10/12/2019 16:08

If the lib dems win they should be testing the water supply for drugs.

[nathdani] 10/12/2019 14:11

Cheers thames had a right good chuckle.

[philanderer] 10/12/2019 13:09

Value in Tesco’s Asia business, says Shore Capital


Tesco’s (TSCO) surprise review of its Asia business is interesting Shore Capital, which believes there is potential value in the region.

Analyst Clive Black reiterated his ‘buy’ recommendation on the shares, which rose 4.7% to 234.1p yesterday.

‘We shall await the outcome of the Asia review with interest, of course and there is much we do not know, but to us the inbound approach reveals a store of potential value for investors in Asia, for which the board either extracts a fulsome price for its trophy asset or continues to pursue the ongoing potential from the region,’ he said.

He said that Tesco was ‘functionally effective, capital disciplined, and seeking to extract sustainable cashflows from its asset base’ and the ‘inbound interest supports our “buy” stance on Tesco’s equity’.

[vaneric1] 10/12/2019 09:48

I suppose they could buy out Lidl or Aldi without any opposition from the CMA :-)

[kinwah] 10/12/2019 09:48

I'm wondering if Tesco is looking to increase its range of subscription type products. Clubcard Plus is a way of deepening the relationship with customers. With the cash from disposals, I could see Tesco buying the AA for example. I haven't looked at the numbers for the AA but regular monthly subscriptions could be the right business model to grow Tesco's UK revenues.

[konradpuss] 09/12/2019 21:11

I wonder what the tax situation will be if they sell?

If you exclude their lease liabilities (capitalised)they will be very net cash if they sell. You cannot pay off their bonds at the drop of a hat.

I guess a special dividend and and perhaps some bolt on acquisitions in the UK for Booker.

They might also consider bringing back on balance sheet the three tranches of UK stores held off balance sheet. That would also bring with it quite a bit of debt.

It's a great business however everything has a price.

[loganair] 09/12/2019 20:56

If the CMA did not allow the Sainsbury/Asda merger with 31.5% market share there is ZERO way they would let a Tesco/Morrison go through with a combined 37% market share.

I think Tesco will be silly to sell their Asia unit as it is their most profitable stores as are around 9.5% of Tesco's overall turnover with 13.5% of their profits.

[nathdani] 09/12/2019 20:23

There is no chance of Tesco buying morrisons imo .

[philanderer] 09/12/2019 19:02

Competition Regulator blocked the Sainsbury / ASDA one .... can't see them letting another big one go ahead at the moment.

[nerdlinger] 09/12/2019 17:10

net debt is quite high, any thoughts on whether the proceeds would just be swallowed up by the balance sheet or would this be acquisition ammo...? I'm thinking Morries...

[philanderer] 09/12/2019 13:27

Jefferies raises tp to 310p from 285p ... 'buy'

[fragma] 09/12/2019 08:33

Possible buyers could include family-owned conglomerates or private equity investors, the person said, with a potential valuation of well over £5bn. Dow Jones reported the valuation could be as high as $9bn (£6.9bn).

[loftus16] 09/12/2019 08:19

WSJ -"People with knowledge of the process said the Thai business could be valued at nearly $7 billion as it includes real-estate assets.Tesco has operated in Malaysia since 2006 and now has 74 stores there. A person with knowledge of the process said the Malaysian business could be valued at $1.5 billion to $2.0 billion."

[kinwah] 09/12/2019 07:20

Sensible move to consider selling the Thai and Malaysian businesses. Tesco have done a good job but those markets are too different from the UK. Tesco would love someone to show inbound interest for the Polish and Czech supermarkets. Poland has been a huge disappointment for Tesco and will never deliver a proper return on capital while Poles continue to support their small shops like Zabka, Lewiatan and Spolem.

[skinny] 09/12/2019 07:03

The RNS :- .

[philanderer] 08/12/2019 18:19

Tesco weighs up sale of Thai and Malaysian stores

Supermarket starts review of 2,000-plus shops after approach by unnamed buyer

[yf23_1] 07/12/2019 13:27

To be fair, CIF is now the preferred option as the price difference is not that great, however for mildly dirty, Tesco's version is fine and its not as abrasive.

[yf23_1] 06/12/2019 20:14

FYI before Tesco made its own version of CIF, CIF was £2 and on offer £1.50.
After, CIF is now a whole lot cheaper.
So be thankful of the competition.

[hazl] 06/12/2019 19:17

It is interesting that you do shop in Tesco despite your constant negativity loganair.
Thanks for helping the profits.