Tesco Share Discussion Threads

[helen troy] 06/1/2024 19:43

3q trading and xmas trading update Thursday. I'll complete my short ? if I get a chance! What fun! ? Good luck to all.

[geckotheglorious] 05/1/2024 10:32

Helen,

That it does :)

[hazl] 05/1/2024 07:14

Thanks gekko.

[johnwise] 05/1/2024 06:07

Sainsbury's announces 'industry-leading' pay rise for 120,000 employees

Sainsbury's has announced plans to increase the rate of pay for 120,000 employees by more than nine per cent.

The supermarket said it will be investing £200million, its single biggest ever investment into colleague pay, with the increased pay rates taking effect from March.

Hourly paid employees will see their salaries increase from £11 per hour to £12 per hour in March.

[johnwise] 05/1/2024 06:03

Pepsi faces supermarket boycott in four European countries

PepsiCo's drinks and snacks are already reportedly unavailable at some of the more than 9,000 stores which are not stocking products due to "unacceptable price increases".

[helen troy] 04/1/2024 23:04

Thanks Gekko. I'm out but it bodes for an interesting results day.

[swiss paul] 04/1/2024 20:57

Share buybacks are a scam that is for the benefit of the board. Thye never buy when the price is low do they.

Brokers must be minting it!

[geckotheglorious] 04/1/2024 20:29

"What to expect from Tesco at next week’s update"
After a strong 2023, shares in the UK’s biggest supermarket trade near a two-year high. But what will be revealed in its trading update for Christmas and the third quarter?

A “cool, calm and collected” Tesco has been backed to post strong Christmas sales figures as a City bank today highlighted the potential for shares to go 17% higher.

A note by Jefferies previewing next week’s trading update adds that Tesco’s “ample and consistent” levels of cash generation should resonate strongly with investors.

The bank expects UK retail like-for-like sales growth of 4.9% over Christmas, rising to 7% across the third quarter. That’s ahead of the consensus view of 3.5% and 6% respectively.

Earlier this week, Kantar Worldpanel reported the supermarket sector’s best December since 2019 as Tesco gained 0.1 percentage points of share to now hold 27.6% of the market.

With Jefferies not ruling out upgrades to Tesco’s cash generation and earnings guidance in the 11 January update, it said the market leader entered 2024 in a “sure-footed manner”.

Shares have risen by about 25% to above 300p in the past year but the base case of Jefferies analysts is a decade high valuation of 350p. The upside scenario is 420p, the downside 280p.

The bank regards the shares as still undervalued on less than 12 times 2024 earnings and a free cash flow yield of about 9%. It highlights the potential for 5% buybacks annually from next year and “appreciable” dividend distributions on a yield above 4%.

It added: “We remain of the view that the broader competitive context should support solid earnings progress at Tesco, and ample and consistent levels of free cash generation.”

Tesco told investors at October’s interim results that it expects free cash flow of between £1.8 billion and £2 billion this year, ahead of medium-term guidance of £1.4 billion-£1.8 billion.

Jefferies said it has written extensively about the improving relative strength of Tesco’s customer offering, which should support strong levels of cash generation.

It continued: “The recent change in rates expectations has driven investors' interest towards more cyclically geared UK peers. This may start changing if progress on inflationary challenges becomes more gradual, and the employment outlook continues to normalise.

“In this context Tesco’s absolute attractions should resonate even more strongly with investors at a time when the group's absolute and relative valuation remain supportive.”

Jefferies continues to model for retail earnings of £2.76 billion in the financial year to the end of next month, above current guidance of between £2.6 billion and £2.7 billion and the City consensus of £2.72 billion.

[hazl] 04/1/2024 18:23

And continues to do us proud.

[hazl] 04/1/2024 18:22

Tesco has done us proud.

[tuftymatt] 04/1/2024 14:49

Good work Helen and no one goes hungry taking a profit off the table.

Good luck all 👍🏻

[helen troy] 04/1/2024 14:13

I've exited my small holding at 300+. It has done well for me. Will beef up my mng holding if OPPO allows, and be back heavily in here after mng divi paid. What fun :-)Good luck to all.

[keyno] 04/1/2024 12:26

Thanks both. Still seems crazy though. :{

[tuftymatt] 04/1/2024 12:20

I think you are correct Helen.

"By on the rumour and sell on the fact" springs to mind.

Good luck all 👍🏻

[helen troy] 04/1/2024 12:16

Reading that link, they only have 75m of shares to buyback by April. Might see some dip in the share price when that is achieved, but Xmas trading and 3q trading will have been announced by then. Wdik dyor

[helen troy] 04/1/2024 12:09

The buyback program is a commitment. You can't switch it off and on at will. https://www.tescoplc.com/investors/shareholder-centre/share-buyback-programme/

[keyno] 04/1/2024 12:01

The share price has only been this high once before since 2014. Why are TSCO paying a broker to continue to buy back their shares at this level? Anybody care to explain please?

I am not a fan of bb's generally but in the 290's for TSCO it seems crazy.

Edit: plus comm. plus stamp duty..............

[philanderer] 02/1/2024 13:53

HSBC joins ranks of suitors for Tesco banking arm

HSBC has joined rivals Barclays and Lloyds Banking Group in expressing an interest in the banking arm of supermarket giant Tesco, Sky News learns

[superiorshares] 31/12/2023 15:21

Can I ask when the next lot of results come out ?
Not the Christmas trading update but the actual results.

[superiorshares] 31/12/2023 11:58

Keyno . Just had another look he's not White is he .
I will waste no more of my valuable time conversing with thr likes of you .
See ya Luvvie