View Poll Results: Buy Tesco shares right now? (votes public)

Voters
27. You may not vote on this poll
  • Yes

    3 11.11%
  • No

    8 29.63%
  • I don't believe in shares for some ethical reason

    2 7.41%
  • 50/50 -only if you have money to burn

    7 25.93%
  • Short term bad, long term good

    6 22.22%
  • 6 month turnaround with HUGE profits

    1 3.70%
Page 1 of 4 1234 LastLast
Results 1 to 16 of 58

Thread: Tesco shares - worth a punt?

  1. #1
    Account closed at user request
    Join Date
    Aug 2003
    Location
    Elephant watch camp
    Posts
    2,150
    Thanks
    56
    Thanked
    115 times in 103 posts
    • wasabi's system
      • Motherboard:
      • MSI B85M-G43
      • CPU:
      • i3-4130
      • Memory:
      • 8 gig DDR3 Crucial Rendition 1333 - cheap!
      • Storage:
      • 128 gig Agility 3, 240GB Corsair Force 3
      • Graphics card(s):
      • Zotac GTX 750Ti
      • PSU:
      • Silver Power SP-S460FL
      • Case:
      • Lian Li T60 testbanch
      • Operating System:
      • Win7 64bit
      • Monitor(s):
      • First F301GD Live
      • Internet:
      • Virgin cable 100 meg

    Tesco shares - worth a punt?

    http://www.bloomberg.com/news/2014-1...ndholders.htmlThey're in the doldrums - only way is up after a few sell-offs and redundancies?
    Last edited by wasabi; 28-10-2014 at 12:31 AM.

  2. #2
    Hexus.Jet TeePee's Avatar
    Join Date
    Jul 2003
    Location
    Gallup, NM
    Posts
    5,167
    Thanks
    124
    Thanked
    668 times in 392 posts

    Re: Tesco shares - worth a punt?

    The moves increase pressure on Chief Executive Officer Dave Lewis to raise capital quickly, either by selling assets or offering shares to existing stockholders. At five times earnings before interest, taxes, depreciation and amortization, according to Moody’s, Tesco has the highest financial leverage of any U.K. supermarket.
    Going to have to no. Too high risk for me.

  3. #3
    Admin (Ret'd)
    Join Date
    Jul 2003
    Posts
    18,481
    Thanks
    1,016
    Thanked
    3,208 times in 2,281 posts

    Re: Tesco shares - worth a punt?

    For me, no. But it's not a reflection on their investment potential, or risk level. It's that being treated badly by Tesco means I won't buy a pint of milk in there, let aone shares. And haven't for years.

    The shares may possibly be a good buy BUT .... two words, Marks & Spencer. Just because Tesco were market leader, were the golden boys, doesn't mean they will be so again.

    Another word ... well, acronym .... IBM.

    Take a judgement. What did Tesco get wrong? IMHO, they failed to adequately see, and adapt for, changing market conditions. They, apparently, failed to understand the seriousness of the financial crash and resultant changes in buying patterns. Or, misjudged the scale, depth and duration of changes in shopping patterns, or of the threat ftom Aldi/LIDL, etc.

    I remember talking to a supermarket branch manager during a store refit, several years back. I queried why they kept the store open, despite huge disruption to both customers and refit crews. Wouldn't it be better to just close for a few days, and get it over with efficiently, rather than have two or three weeks of mess mixed with customers?

    He told me that at his previous, and much smaller, branch, they did just that. Closed for a week to get everything done as fast as possible and not affect customers. Trouble was, customers wanted to shop during that week, and since they were closed, the customers went 100 yards down the road to a competitor. And about 35% never came back.

    People, he told me, are for the most part creatures of habit. Once you've got them, habit, comfort zone and routine tend to keep them coming back, over and over. Unless you break the routine .... like by closing for a week. So, never ever encorage them to break routine. It's a large part of what loyalty/reward cards are about. That, and data mining, but that's for a different thread.

    So, back to Tesco. Now that LOTS of people havd tried Aldi/LIDL and found, hey, product quality is often pretty good and so are prices, well, the Tesco habit is broken.

    It MIGHT be a mistake to think that Tesco can necessarily revamp their offering and those that have left will come flooding back. And even that is assuming the get the revamp formula right. M&S are still trying to do that.

    Maybe Tesco fortunes will pick up and shares will pick up. Or maybe the current price accurately reflects a new long-term reality.

    Ultimately, your question can best be answered with another simple question ....

    <Best Clint Eastwood voice on>

    Do ya feel lucky, punk? Well, do ya?

    <Best Clint Eastwood voice off>

  4. #4
    Seething Cauldron of Hatred TheAnimus's Avatar
    Join Date
    Aug 2005
    Posts
    17,147
    Thanks
    798
    Thanked
    2,151 times in 1,407 posts

    Re: Tesco shares - worth a punt?

    No way, they massively over expanded, and got hurt by this, meanwhile they lost their position in the UK market, the most valuable customers left to Waitrose as they expanded, and Sainsburys as they bought Jamie Oliver.
    throw new ArgumentException (String, String, Exception)

  5. #5
    Senior Member Smudger's Avatar
    Join Date
    Oct 2005
    Location
    St Albans
    Posts
    3,785
    Thanks
    623
    Thanked
    579 times in 429 posts
    • Smudger's system
      • Motherboard:
      • Gbyte GA-970A-UD3P
      • CPU:
      • AMD FX8320 Black Edition
      • Memory:
      • 16GB 2x8G CML16GX3M2A1600C10
      • Storage:
      • 1x240Gb Corsair M500, 2TB TOSHIBA DT01ACA200
      • Graphics card(s):
      • XFX Radeon HD4890 1GB
      • PSU:
      • Corsair HX520
      • Case:
      • Akasa Zen
      • Operating System:
      • Windows 10 Home
      • Monitor(s):
      • Dell 24"
      • Internet:
      • Virgin 200Mbit

    Re: Tesco shares - worth a punt?

    For all they're supposed to be great value, etc, I've found that they're actually quite expensive, compared to Morrison's etc. I think perhaps they were, then they thought 'hey people are coming anyway, we don't need to be cheap any more' and now shoppers are realising that they're being stiffed. At least Waitrose are expensive but good. Shopping at the big Tescos just makes me depressed.

    Edit: So no, I don't think they're going to get back to the position they were in, so their shares probably aren't good value.

  6. #6
    The Old Fox csgohan4's Avatar
    Join Date
    May 2012
    Location
    The Fox Hole
    Posts
    1,057
    Thanks
    172
    Thanked
    57 times in 52 posts
    • csgohan4's system
      • Motherboard:
      • MSI Z97 Gaming 9 AC
      • CPU:
      • I7 4770K with Noctua-D15
      • Memory:
      • G SKILL 2400Mhz 8GB
      • Storage:
      • Samsung 840 Evo 500 GB| Seagate 1TB + 1.5TB
      • Graphics card(s):
      • EVGA GTX 780 ACX
      • PSU:
      • Corsair AX 860
      • Case:
      • HAF X with NF-S12B FLX, TY-140, X4 Coolermaster Megaflow 200mm and Demciflex Dust Flters
      • Operating System:
      • Windows 8.1 Pro
      • Monitor(s):
      • LG 24inch LCD W2468L
      • Internet:
      • Sky Fibre Unlimited with Asus DSL N66U

    Re: Tesco shares - worth a punt?

    I previously shopped at Tesco 5 years ago, but then found Sainsbury, much better quality and often cheaper.

    As someone said earlier, Tesco failed to adapt although to a lesser extent to Morrison's/ Coop the latter got into the local store band wagon too late.

    Tesco was good earlier as they sold more than just food stuffs like car stuff and bedding e.t.c. Now a lot of their competitors caught on and offers goods from vacuum cleaners to Televisions.

    Haven't checked out Aldi/Lidl yet, anyone tried and thought it was decent?
    Trust Profile HEXUS Forum FAQ and Colour coding/Post Count awards

    'The Fox is cunning and relentless, and has got his Fibre Optic Broadband'

  7. #7
    Senior Member Smudger's Avatar
    Join Date
    Oct 2005
    Location
    St Albans
    Posts
    3,785
    Thanks
    623
    Thanked
    579 times in 429 posts
    • Smudger's system
      • Motherboard:
      • Gbyte GA-970A-UD3P
      • CPU:
      • AMD FX8320 Black Edition
      • Memory:
      • 16GB 2x8G CML16GX3M2A1600C10
      • Storage:
      • 1x240Gb Corsair M500, 2TB TOSHIBA DT01ACA200
      • Graphics card(s):
      • XFX Radeon HD4890 1GB
      • PSU:
      • Corsair HX520
      • Case:
      • Akasa Zen
      • Operating System:
      • Windows 10 Home
      • Monitor(s):
      • Dell 24"
      • Internet:
      • Virgin 200Mbit

    Re: Tesco shares - worth a punt?

    Yep, most stuff is the same quality, and they even package with similar (but definitely not the same, oh no) packaging, so you know what you're getting...

  8. #8
    Registered User
    Join Date
    Oct 2014
    Posts
    10
    Thanks
    0
    Thanked
    0 times in 0 posts

    Re: Tesco shares - worth a punt?

    Would not like to call the bottom for Tesco

    Over expanded and facing competition from Supermarkets (Aldi/Lidl) who aren't under pressure to return such high profits for shareholders.

  9. #9
    Account closed at user request
    Join Date
    Aug 2003
    Location
    Elephant watch camp
    Posts
    2,150
    Thanks
    56
    Thanked
    115 times in 103 posts
    • wasabi's system
      • Motherboard:
      • MSI B85M-G43
      • CPU:
      • i3-4130
      • Memory:
      • 8 gig DDR3 Crucial Rendition 1333 - cheap!
      • Storage:
      • 128 gig Agility 3, 240GB Corsair Force 3
      • Graphics card(s):
      • Zotac GTX 750Ti
      • PSU:
      • Silver Power SP-S460FL
      • Case:
      • Lian Li T60 testbanch
      • Operating System:
      • Win7 64bit
      • Monitor(s):
      • First F301GD Live
      • Internet:
      • Virgin cable 100 meg

    Re: Tesco shares - worth a punt?

    Quote Originally Posted by Gerinako View Post
    Would not like to call the bottom for Tesco

    Over expanded and facing competition from Supermarkets (Aldi/Lidl) who aren't under pressure to return such high profits for shareholders.
    Dividend yields have historically been solid but not outstanding (4.5 to 6.5) percent region. The Aldi / Lidl factor is probably the biggest concern and not the old enemy Sainsburys. Yet are they really only worth half what there were a year ago, or are they undervalued?
    Last edited by wasabi; 28-10-2014 at 04:54 PM. Reason: missed out crucial 'half'

  10. #10
    Senior Member
    Join Date
    Nov 2011
    Posts
    892
    Thanks
    53
    Thanked
    83 times in 71 posts

    Re: Tesco shares - worth a punt?

    Tesco could well be the mother of high street crashes. To some this may sound unthinkable until you start to explore why the company decided to ramp up debts to fuel aggressive company expansion. You know Tesco is seriously in trouble when a credit rating agency decides to downgrade its rating to one notch above junk status. Only a complete idiot would consider investing in Tesco now.
    Last edited by Top_gun; 28-10-2014 at 03:56 PM. Reason: Added last sentence

  11. #11
    Orbiting The Hand's Avatar
    Join Date
    Mar 2004
    Location
    Lincoln, UK
    Posts
    1,547
    Thanks
    162
    Thanked
    94 times in 72 posts
    • The Hand's system
      • Motherboard:
      • Gigabyte AB350 Gaming-3
      • CPU:
      • AMD Ryzen 5 2400G
      • Memory:
      • 16GB Patriot Viper DDR4 3200mhz (8GBx2)
      • Storage:
      • 1TB Toshiba SSHD
      • Graphics card(s):
      • Vega 11 (APU)
      • PSU:
      • Corsair HX 520 Modular
      • Case:
      • Coolermaster Praetorian
      • Operating System:
      • Windows 10 Pro
      • Monitor(s):
      • Sony 32 inch HD TV
      • Internet:
      • 20Mbps Fibre

    Re: Tesco shares - worth a punt?

    I'm going to wait for £1.00 myself before buying! If it's in free fall though I may buy lower. Tesco has a lot of assets property etc so I don't expect complete wipe out for them.

  12. #12
    Admin (Ret'd)
    Join Date
    Jul 2003
    Posts
    18,481
    Thanks
    1,016
    Thanked
    3,208 times in 2,281 posts

    Re: Tesco shares - worth a punt?

    Quote Originally Posted by Top_gun View Post
    ....

    Only a complete idiot would consider investing in Tesco now.
    I wouldn't go that far.

    I think the critical bit is in the thread title ..... "worth a punt".

    Of course, I don't know for sure what wasabi has in mind, but I take "have a punt" as being shorthand for a highly speculative gamble, fully aware they may lose value, much in the sense that I, as someone that can barely tell the front end of a horse from the back, might decide to have a £5 punt on a 100-1 outsider in the Grand National because I like the horse's name. I'm aware I'll probably lose the fiver, and if so, oh well. But if it comes in?

    In other words, are Tesco shares a rational buy in a risk-averse investment strategy? Hell no. But, a "punt"? Depends if "ya feel lucky?"

  13. #13
    Account closed at user request
    Join Date
    Aug 2003
    Location
    Elephant watch camp
    Posts
    2,150
    Thanks
    56
    Thanked
    115 times in 103 posts
    • wasabi's system
      • Motherboard:
      • MSI B85M-G43
      • CPU:
      • i3-4130
      • Memory:
      • 8 gig DDR3 Crucial Rendition 1333 - cheap!
      • Storage:
      • 128 gig Agility 3, 240GB Corsair Force 3
      • Graphics card(s):
      • Zotac GTX 750Ti
      • PSU:
      • Silver Power SP-S460FL
      • Case:
      • Lian Li T60 testbanch
      • Operating System:
      • Win7 64bit
      • Monitor(s):
      • First F301GD Live
      • Internet:
      • Virgin cable 100 meg

    Re: Tesco shares - worth a punt?

    Quote Originally Posted by The Hand View Post
    I'm going to wait for £1.00 myself before buying! If it's in free fall though I may buy lower. Tesco has a lot of assets property etc so I don't expect complete wipe out for them.
    They've jumped back up by about a percent today.

  14. #14
    Senior Member
    Join Date
    Nov 2011
    Posts
    892
    Thanks
    53
    Thanked
    83 times in 71 posts

    Re: Tesco shares - worth a punt?

    Quote Originally Posted by Saracen View Post
    I wouldn't go that far.
    I would. There are two ways to assess value of shares: fundamentals or technical analysis (charts). Both methods doesn't favour Tesco at all. In order to assess fundamentals you need to have reliable information such as profits (oh dear), debts, etc and at the moment Tesco has a reputation problem with investors because of the overstated profits. Tesco's charts is in free fall with no sign of bottoming out.

    I think this Telegraph article - five reasons not to buy Tesco shares sums up Tesco rather well.

    Quote Originally Posted by Saracen View Post
    In other words, are Tesco shares a rational buy in a risk-averse investment strategy? Hell no. But, a "punt"? Depends if "ya feel lucky?"
    Gambling is not the same as investing. However a good investment strategy could be "shorting" on Tesco shares instead of going "long".

  15. #15
    Orbiting The Hand's Avatar
    Join Date
    Mar 2004
    Location
    Lincoln, UK
    Posts
    1,547
    Thanks
    162
    Thanked
    94 times in 72 posts
    • The Hand's system
      • Motherboard:
      • Gigabyte AB350 Gaming-3
      • CPU:
      • AMD Ryzen 5 2400G
      • Memory:
      • 16GB Patriot Viper DDR4 3200mhz (8GBx2)
      • Storage:
      • 1TB Toshiba SSHD
      • Graphics card(s):
      • Vega 11 (APU)
      • PSU:
      • Corsair HX 520 Modular
      • Case:
      • Coolermaster Praetorian
      • Operating System:
      • Windows 10 Pro
      • Monitor(s):
      • Sony 32 inch HD TV
      • Internet:
      • 20Mbps Fibre

    Re: Tesco shares - worth a punt?

    Quote Originally Posted by wasabi View Post
    They've jumped back up by about a percent today.
    Yes, I won't be buying soon. They may enjoy some kind of Xmas rally, but remember in January 2012, when "disappointing" results for Xmas 2011 were announced, there was a 25% drop in the share price. Warren Buffett has also said he made a huge mistake with Tesco which will further undermine confidence.. No one knows where bottom is, but that said, I personally think the Aldi/Lidl effect is still building. I wouldn't be too surprised if the Tesco share price carries on down.
    Last edited by The Hand; 29-10-2014 at 06:30 PM. Reason: typo

  16. #16
    Senior Member
    Join Date
    Mar 2010
    Posts
    2,567
    Thanks
    39
    Thanked
    179 times in 134 posts

    Re: Tesco shares - worth a punt?

    problem with a big crash at Tesco would be a knock on effect for the entire sector and all the way down the supply chain.

    how would I turn it around? IMO of course ; copy france - far greater ability to negotiate with the producers - take everything for a lower price than the highest quality and throw the rest. sell the random `bits` really cheap , you know, the odd shaped veggies> and make the highest quality items even higher quality. take the discounters on by the throat , and go by the original ethos ` stack em high and sell em cheap`.


    and more staff on the shop floor - no queues at the tills , staff working stock yes , but enough of them about - and happy ones who are happy to help not moody ****s.

Page 1 of 4 1234 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •