Tesco Share Discussion Threads

[pander45] 26/1/2021 18:48

Take the divi out of it, it's give and take so it cancels itself out. Unless youre taxed then youre out of pocket. Let's focus on the consolidation. Can someone tell me why you would buy anywhere above 240 and hold for a consolidation that will take you back to 240, but with a lot fewer shares. Sorry, it's slight of hand this one - securities by obscurities - quite literally. As Duncan B would say, I'm out.

[c0cky] 26/1/2021 17:06

Sold out this morning. Doesn't look like a good deal to me. Best of luck to everyone. I'll be back lower if it happens

[supercity] 26/1/2021 13:08

If the shares are 250p you will get 50p per share divi so if you don't hold in a tax free way then you are likely to pay tax on it.The shares would then be worth 200p.15/19 consolidation should bring the price back to 250p.You will still have the same amount of value except after dividend and consolidation you will have less physical shares but the value of the shares and your dividend will be the same - but the 50p will be in your pocket

[supercity] 26/1/2021 13:05

Yes the divi comes off the share price - the profit is to be made buying at a level which is below what you believe the share price will hit before it goes ex-divi.So if you believe the share will rise to 260-270 (which I do) there is 40-50p a share to be made from a 220p entry- obviously that price was there a few weeks ago and not today

[nerdlinger] 26/1/2021 12:59

The divi and consolidation together looks like Tesco are forcing me to sell 4/19ths of my shares for £2.42 each... Harumph! To restore my holding I'll have to hope to use my divi to buy them back for less. Am I looking at it wrong?

[sentiment riles] 26/1/2021 11:18

me too bud

smash n grab

if something occurs to put share price way above possible kick on the D, might stay in

[paulo435] 26/1/2021 11:16

Hi Sentiment, re RR yes I am, been keeping an eye on it for a while. Cash burn is the issue at mo with fewer planes in the air. Further 2bn but still 9 of liquidity. Anyway not for this board lol. I’m in for Tesco short to med term btw

[mbronco1] 26/1/2021 10:39

The distribution of 50.93 is being paid via a special dividend not a return of capital. It will therefore be subject to 7.5% tax as a basic rate tax payer or 32.5% if a higher rate taxpayer. So the distribution will mean you have an immediate tax charge and will have created a large capital loss on your original holding. The shares may recover but they will have to appreciate substantially to recover the pre distribution price.

[sentiment riles] 26/1/2021 10:23

Anyone tracking RR?

its not time yet, but one to watch to time a trade that could easily become a really good holding investment

but as say, not yet

[sentiment riles] 26/1/2021 10:04

Breakeven stop on 239 mid now

Free ride

great if can get a year out of it

[carpingtris] 26/1/2021 08:40

I think the £2.5bil in the pension pot is a good move :) it's only kicking the can down the road otherwise so it's nice to see them being pro-active about it.

[nathdani] 26/1/2021 08:36

But its still debt paid ,it will be there until its paid .

[c0cky] 26/1/2021 08:33

Yes dividend and consolidation has no baring on the price. BUT aren't we missing £2.5bil in the pension fund. That's a chunk of value we'll never see. Hence markets caution

[konradpuss] 25/1/2021 21:52

supercity, are you sure?

Forget the 10 p dividend, think of the total amount of the dividend the company distributes.

This will be circa much the same, as the loss of profit from the Thai business is off set by the reduction in pension contributions.

Then spread that over less shares in issue.

Am I missing something or will you not in the round receive the same?

[fudgee2] 25/1/2021 21:29

Thanks for that. Yes less sales equals less final Divided.

With less shares in circulation then the percentage per share will be higher and this can from what I see be the only positive to make people want to buy after for a better rate?

[fudgee2] 25/1/2021 18:53

Hi all this is my 1st time posting so please bare with me. I take it the main advantage with the consolidation is that if my shares were at £2.42 with say a 10 p yearly Divi then with the new shares reduced to £1.88 with the same yearly 10p Divi then the % Divi rate has increased?

Also less shares in circulation which can only help a share price?

I welcome your views.

Regards

[pander45] 25/1/2021 18:28

Not if you do the maths on holding for the special dividend......

[supercity] 25/1/2021 17:47

I can't see supermarkets doing anything other than benefitting from the continued lock down and lack of holidays this year (extra food gets bought when people stay in this country) so looking at the share price and how it hasn't really moved much even though a 50p dividend is in its way I could easily see it trading 20-30p higher by 12th February

[yf23_1] 25/1/2021 17:08

It leaves the company slightly more focused and geared to results.

[sentiment riles] 25/1/2021 16:42

Yeah money is there days. Don’t think they will worry about that

[westham2017] 25/1/2021 16:35

@Yf23_1 - yes that's correct. The share consolidation is approx the same amount as the dividend. It was mentioned as below...

"The effect of the Share Consolidation will be to reduce the number of Existing Ordinary Shares in issue by approximately the same proportion of market capitalisation returned via the special dividend"

Because the £2.5 bln payment towards the pension deficit offsets cash generated from the thai/malaysian businesses (approx £250 mln per year), it will mean from 26 Feb, you will own a business that generates the same level of cash flow & earnings prior to the sale, plus you will have received a dividend. (subject to shareholder approval).

[yf23_1] 25/1/2021 16:05

15 new for 19 old gives mkt cap change of -4,978.785m
which is very close to the GBP4,987,827,804 returned

[wendsworth] 25/1/2021 13:35

'smoke and mirrors' ..comes to mind?