Buy Shares In Tesco?

[SwissChris]

Key support level at 156 on the monthly. The market will probably drive it down to bounce around there for a quick in and out trade. Where it will rattle around for a bit and move on news and technical indicators - i.e. the traders will start moving it.

MACD and stochastics are indicating on the daily that price still has a little way to fall.

Best thing to do is to sit and wait for all this shit to come out and look for the reversal.

Don't take advice off strangers!

 

[Nuno]

Shares in Tesco are now on sale in Lidl.

 

[UKSBD]

Shares in Tesco are now on sale in Lidl.

Give it another couple of weeks and they will be for sale at Poundworld

 

[MASSEY]

I didn't buy. I'm pretty glad that i didn't. It looks as if it could be quite a dull investment over the long term, it's all too doom and gloom.

Buffett must have had some inside info.

I'm now wondering whether there is money to be made on short term trades with Tesco, it's be flapping between 169 and 187 ever since i started taking note of it. Although it is hard to tell whether it will fall further yet.

Roughly, 1000 pounds equates to 585 shares buying at 171.

If the price goes up to 185, raising 14 points, your 1000 would go up about 80 quid, minus your 35 quid dealing and you're up 45 quid.

I think my calculations are right.

Trouble is, doing it this way you'll have to keep your eye on the share price so could be quite time consuming.

 

[Matt1959]

yep I think you're sums are right. The bad news seems to be drip feeding in now! I should have listened to my own advice which was accounting fiddles will go back further than one year and now they're saying just that plus they are saying FCA might fine them and I said that as well lol. Never mind its bit of fun - will come right in the end I guess.

 

[MASSEY]

It's fun but i want to make a profit. If i wasn't so busy with work and had more time to think i'd have probably bought Tesco this week. I think i will get more pleasure out of buying and selling more frequently for short term wins instead of keeping the same share for months.

I'm looking at what else is worth investing in, this ASOS seems quite volatile. Up 10% over the last month. Price per share is a bit high http://www.hl.co.uk/shares/shares-search-results/a/asos-plc-ordinary-3.5p

Hopefully i will have more time next week to make some decisions.

 

[Matt1959]

sure...when I say fun I mean as long as I get £15 back over the year then I've not lost as thats what I would get in interest on the money. If you wanna make money at it you need to know what you're doing....which I dont really! I think I'm spurred on by the £400 I made on RM and the decision not to buy Saga Its amazing what some are making short term if you spend enough - ie if you £500K on tesco at 1.78 an sold them at 1.85 you'd clear nearly £20K just like that. I guess thats what some people are doing who do it for a living...

 

[vvaannmmaann]

Misery loves company.

Tesco is withholding payouts totalling £2m to Philip Clarke and Laurie McIlwee, its former chief executive and chief financial officer, as Britain’s biggest retailer reels from the discovery of a £263m shortfall in its profits.

http://www.telegraph.co.uk/finance/...m-pay-out-to-former-bosses.html#disqus_thread

 

[MikeJ]

One reason I don't play in the stockmarket directly....

SFO announce a criminal fraud investigation into the Tesco accountancy issue. Tesco shares increase 2%.

 

[Mobile & Tablet Repairs]

A store like Tesco is never going to completely plumet, they are down not out, so yes a good time to invest in shares i think.

 

[MikeJ]

173.6 at the moment, having risen 5.45 today.

 

[tony84]

Im not sure if anyone has mentioned this yet but dont forget they are due to get a fine from the FCA/Financial ombudsman for fudging their accounts.

I doubt very much that will be a £10k fine and will probably have a couple of extra 0's on it.

 

[SwissChris]

Unless you're fully tuned into the daily gyrations of the market i'd still steer clear of scalping TSCO. The market will turn it on a dime and run the small private dabblers ragged until the good news starts to flow again by which time they will have hoovered up their shares.

If you must buy TSCO - go long on the dips, re-invest the divi and forget about them for the next 25 years. The market will hate you for it, which is good.

 

[The Byre]

The trouble with Tesco and Walmart/Asda and others of similar ilk, is that they still think in terms of their home markets. They look at Lidl and Aldi and, instead of understanding their German roots, they think they are dealing with some pile-em-high-sell-em-cheap knock-off companies built on credit.

That is why both Tesco and Walmart both got so badly burnt in Germany waaay back.

You can't crush a company that is completely privately owned, always owns its shops outright, does not need credit, buys on a World-wide scale, pays suppliers punctually, does not try to squeeze suppliers beyond what has been agreed upfront, has massive and effective QC, hires the best staff and pays some of the best wages and salaries in retail.

Also both Aldi and Lidl have turned location into an exact science to fit the growing need for a quick and painless shop on the way home from work. They have also massive experience in taking over the food retail business of a country. They have done dozens and dozens of times. From Poland to France, they know exactly how to 'Aldify' (a real expression in German business economics!) the market and they plan LONG TERM.

They know where they want to be decades from today. They even have a plan for the next one hundred years. Tesco does not know if it will still be around in ten or twenty years.

 

[Mobile & Tablet Repairs]

As i see it TESCO have indeed taken a hit, they have tried to grow too fast and upset a lot of people in doing so. Over inflated prices, i am too big to give a monkeys attitude, and the attitude of their staff have all resulted in this.
Added to their development ethic of buying and building their stories often without planning permission riding roughshod over peoples feelings and thoughts hasn't helped either.
I doubt very much it will be the end of the brand. I am surprised they have allowed as many as 43 express stores to under perform. I imagine most general managers and managers will now be under extreme pressure to turn their stores around or loose their jobs. So this will no doubt bare down on junior managers.
My take on it is they will cut right back to that which is profitable and rebuild. But they have tried to be like a Virgin brand getting into industries they have little knowledge in trying to take on already established companies with brand. Quite a dangerous thing to do unless you know what you're doing.
I have never been a fan of Tescos, their shoddy attitude, inflated prices, and flimsy bags which have all too often caused us to loose our shopping across the road does not make for a retailer with a future. As said i dont see Tesco going into admin but i do see them having to cut right back. They are no longer a major player in retail IMHO

 

[UKSBD]

I would say a lot of the blame should go on whoever designs the in store layouts.

Problem is, these people obviously know what they are doing, and have the optimum layouts, but it's why I rarely go in Tesco nowadays.

 

[Faevilangel]

and flimsy bags

Use your own

I have fold away bag which fits in my pocket which I can use if I am picking up a couple of items or I have a few other bags in the car for the big shops. Soon enough they will charge for using bags (same as the welsh law) so be prepared early.

 

[DavidWH]

Strangely enough I got an e-mail from BlinkBox that's now part of TalkTalk not Tesco?

Was this a planned sale, or is it to soften the blow of their poor sales in store?

 

[Faevilangel]

Strangely enough I got an e-mail from BlinkBox that's now part of TalkTalk not Tesco?

Was this a planned sale, or is it to soften the blow of their poor sales in store?

Has been in the works for ages (if you read the business news), blinkbox lost nearly £20m last year so had to go, Tesco tried to diversify into video and failed imho

Tesco have been getting better in the last 3/4 months (imho), they redesigned our local extra to be more about food and less about non-food (clothing, electricals) and they redesigned the food areas to be more friendly. I actually prefer to shop in Tesco as it has a more homely feel but there is a lot more they need to do, not just cut prices but stock better quality items, that's what's letting them down, the quality has dropped but the price has gone up.

 

[Mobile & Tablet Repairs]

Strangely enough I got an e-mail from BlinkBox that's now part of TalkTalk not Tesco?

Was this a planned sale, or is it to soften the blow of their poor sales in store?

Tesco just sold Blinkbox to TalkTalk along i think with the broadband. The spin off company that handles the Tesco Rewards scheme is being sold too. WHICH i wonder if it can LEGALLY do as its peoples data. That said same would apply for the other sales too

 

[Mobile & Tablet Repairs]

Use your own

Yup we agree there BUT funnily enough its either the case that we keep forgetting to bring them OR we never seem to have enough. BUT we can promise this ALL bags get reused in one way shape or form before being thrown away.

 

[Matt1959]

I have fold away bag which fits in my pocket .

sad git...... re. tesco shares, I'm kicking meself this week as I bought as per earlier in this thread at 1.78, sold at 1.95. Waited for weeks and weeks then bought at 1.89 and sold the night before the recent results at break even thinking the price would dip on the results, it didnt it took off!!!!

something in me says tesco will come right. They are too big and powerful to not do so. yes theyve had a wobble but they will get back on track IMO. I also think shoppers love affair with Lidl/ Aldi will fade as the major names make more effort with prices...apart from the hard core pyjama wearing ones that is Finally I think that it will be Morrisons that will struggle the most.....

 

[FutureM]

I very nearly placed a spread bet the night before based on the price going down, so glad I didn't. At lease it's a valuable lesson for the future!

 

[FutureM]

On your second point... I recently gave Aldi a go, very impressed with the prices, not so much with the products. I still have to go to tesco to get certain items but the saving is still huge! If Tesco bring their prices down I would go back without an issue.

 

[Faevilangel]

The problem is I can't see Tesco / Asda bringing their prices down to match Aldi etc as they would have no profit on them. Tesco tried this a couple of years ago with a new range of products (with non brand names) but they lasted just over a year and now they have all gone.

Tesco / Asda have much larger overheads then their German rivals. I personally don't shop in the Aldi / Lidl because of this, I am normally queueing for 15 minutes+ and I can't get even a quarter of what I need so I have to go to Tesco anyway.

The cost savings just aren't worth it for me, I prefer to do my shop in one place rather than going from place to place, and the food in Aldi can be hit and miss.

 

[FutureM]

I agree, fortunately for me, Aldi is almost next door to the Tesco i used to shop at.

I think tesco are doing the right thing with closing stores and cancelling the opening of more large stores. The ideal future from my own point of view is shopping will become mostly online with a few large stores. Id love to see selfridges style food shopping where they'll be different vendors under one roof. No large national ones all the vendors would be local.

 

[Chris Ashdown]

Come on you experts in finance why do you think Tesco cannot fall further

a) all its main stores are superstores which by their size means they must offer many competing brands to fill the shelves
B) rents will remain high
C) Land sales will be below purchase price as they brought at the top of the market

Lidl and Aldi only stock about a 10th of the products the Big four carry and most of the ones it does stock are not market leaders with big advertising names like Heinz but low cost unknown brands who are happy to sell at far lower prices in smaller stores

 

[Karimbo]

my opinion of Tesco has changed since watching the paronama documentry. They can rot and I would not care.

I would encourage everyone to watch it: http://www.bbc.co.uk/iplayer/episode/b04ynpct/panorama-trouble-at-tesco

Summary, they became market leaders for their prices. But they began chasing profit, they thought it was sensible to kill the proverbial goose that lays the golden eggs and start charging their suppliers fees, tariffs, performance "fines" etc.

Tesco supplier would pay a fee to sell to Tesco, some of these fees would spiral out of control.

Allegedly there was no real justification for some of them, Teso buyers would grab whatever they can get. If the suppliers overprojected, the supplier would get fined for not delivering on their estimate, if it underprojected they would get fined too because they've taken much more profit than they anticipated.

They also took payments for promotions and prominent displays and at the peak of it Tesco stores were ram packed with so many promotions at one go that it become confusing to shoppers to navigate or even work out if offers were actually worth while. Like in the two for £3 "deals" where individually they cost £1.53 or something.

The programme doesn't go into this, but I suspect suppliers needed to recoup their profits after their "fines" and just increased prices of their products. End result being Tesco just wasn't competitive - at a time when they really needed to be.

Suffice to say Teso is the one supermarket that keeps on getting flagged up for their "unfair" business practices. They were in the press not so long ago for their heavy handed appraoch with their farmers and hammering down prices to the extent that farms are no longer viable.

These unfair business practices aren't just unfair on their suppliers, it poses a risk to food security in the UK. If farmers in this country are being forced to go under it would only mean that food would need to be sourced for overseas. This is not going to be beneficial to our country in the long run.

 

[MikeJ]

I didn't see it, but I'm always going to refer to it as Paronama from now on.

 

[CWT2k1]

I wish we had tesco here we just have walmart

 

[roydmoorian]

What ? No http://www.pigglywiggly.com/store-locations

 

[CWT2k1]

Not in Ohio, although I've heard great things about them.

 

[roydmoorian]

Supposed to be one in Oak Hill - http://www.pigglywiggly.com/stores/OH

But that's about 90 miles from you !

 

[CWT2k1]

Nice !

 

[MASSEY]

I wish we had tesco here we just have walmart

I think you did, but it was called Fresh and Easy and not Tesco.

From what i read a while ago, they were shutting it down because it was making a loss. Maybe the name Fresh and Easy should have been Fried and Easy

 

[MASSEY]

sad git...... re. tesco shares, I'm kicking meself this week as I bought as per earlier in this thread at 1.78, sold at 1.95. Waited for weeks and weeks then bought at 1.89 and sold the night before the recent results at break even thinking the price would dip on the results, it didnt it took off!!!!

something in me says tesco will come right. They are too big and powerful to not do so. yes theyve had a wobble but they will get back on track IMO. I also think shoppers love affair with Lidl/ Aldi will fade as the major names make more effort with prices...apart from the hard core pyjama wearing ones that is Finally I think that it will be Morrisons that will struggle the most.....

So, how much profit have you been making then Matt?

Sadly, the money i uploaded to my share account has sat Dormant.

Seems i was right about it rebounding though, which was good for a novice like me.

It also shows how much BS these share price investors talk. Prior to December there were countless so called experts telling people to avoid Tesco.

One question i do have though, if you know. When you buy your shares and then sell them at a profit, does tax automatically become payable on that profit, or are investments that are not in profit or losses from investment sales taken into consideration with regards to your tax return? Part of the reason i have held off is wanting to keep my tax return more simple

 

[Matt1959]

So, how much profit have you been making then Matt?

Sadly, the money i uploaded to my share account has sat Dormant.

Seems i was right about it rebounding though, which was good for a novice like me.

It also shows how much BS these share price investors talk. Prior to December there were countless so called experts telling people to avoid Tesco.

One question i do have though, if you know. When you buy your shares and then sell them at a profit, does tax automatically become payable on that profit, or are investments that are not in profit or losses from investment sales taken into consideration with regards to your tax return? Part of the reason i have held off is wanting to keep my tax return more simple

Struggling to remember it was so long ago! I made a small profit first time round then broke even the 2nd then watched it go from 1.95 to 2.42 or something. You are so right about broker advice. I've bought small amounts in quite a few shares now and resold for a profit and the last one was ITV. Broker forecast said it had maxed out and only way was down when it was something like 2.21 (I'd bought the day before that forecast lol, then results hit and it shot up and I made £160 in 3 days. Now its at 2.42! You can avoid tax by sticking the cash in a shares ISA, I think the limit is £15K pa dont quote me on that. net gains so far this year are about £2200 and thats from initial sum of £7800 so not bad for a novice