Tesco is one of the worlds leading international retailers. Since the company first the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different sectors. The UKs leading retailer Tesco was floated on the stock exchange in 1947 and in 1995 took over rival Sainsburys position as the UK number one. The principal activity of the group is food retailing, with over 2,000 stores worldwide. Tesco has a long term strategy for growth, based on four key parts: growth in the Core UK business, to expand by growing internationally, to be as strong in non-food as in food and to follow customers into new retailing services. The company launched a home shopping service in 2000, allowing customers to order their shopping online. Tesco is now expanding its convenience stores and overseas into areas such as Taiwan, Malaysia, Poland, the US and Ireland.

Upper graph = 12 month share price with 6 month moving average
Lower graph = 12 month volume (red line = volume average).

Notification pursuant to Listing Rule 9.6.11

Pursuant to Listing Rule 9.6.11, and further to Tesco PLC's announcement on 28 July 2014, the Company announces that Alan Stewart will join the Board as Chief Financial Officer with effect from 23 September 2014, rather than the previously announced date of 1 December 2014.

the worry in the city is how deep the rot goes - is this just the tip of the iceberg
gla

parachutes lol

further skeletons are almost inevitable

I can take profit warnings, missed targets and the usual bag of excuses.
Not fraudulent accounting.
More than hacked off.

personally not surprised - bit off more than they could chew going into other commodities and countries they should have kept out of - motivated by GREED - greed always fails in the end - this is like woolworths just on a much larger scale and more global - complete mess

marks & sparks need to learn from this selling other brands in their stores any branching into other areas they don't know - morrisons the same with that online kiddies outlet they had to flog quickly for a 70M loss

but tescos will be the worst - never quite seen GREED on this scale now come back to bite them large

Bought @ 200 this morning , stopped out @ 196

Its the food sales , and a change of shopping habits. Went to Tesco this morning to buy some grapefruit , and they were all thick skinned and puffy, then called in at Lidle and their G/fruit was perfect .

Didn't Buffett tip them a while back as a recovery play

Agree Tesco have let the fresh food side of the business go to the dogs. They were never top class but in the last 5 years or so they have gone even worse. Dont buy sandwiches from there they are rotten.

Mind at these cheapo supermarkets aldi and liddle some of the foreign muck isnt worth buying.

Sainsburys up here in the North as always been solid, pity we dont have waitrose. though.

Did more than that he bought a chunk of the stock and a year or so ago flogged some.

When I worked at Tesco as a schoolboy shelf filler they used to pump the chickens full of water to increase the weight before freezing them. Bloody cheats.

From the Telegraph at: http://www.telegraph.co.uk/finance/personalfinance/investing/shares/11112864/Tesco-shares-Why-Im-still-a-fan.html

Tesco shares: 'Why I'm still a fan'
Tesco shares tumbled after it admitted over-estimating profits. But some high profile backers remain committed - and some even welcomed the news. We talk to top fund managers about Tesco shares

By Kyle Caldwell6:39PM BST 22 Sep 2014

It has been a year to forget for supermarket chain Tesco and today things took another turn for the worse, shares have fallen heavily after the firm said it had overstated the amount of profits it made in the first half of the year.

In a statement to the London Stock Exchange the retailer said it had overestimated how much money it had made by £250m.

Dave Lewis, who became chief executive on September 1, said the discovery was a "serious issue" and the market agreed as Tesco shares dropped 11pc on the opening bell. At 10.15am Tesco had fallen 8pc to trade at 211p per share, which marks a ten-year low.

The retailer’s shares have fallen 38pc year-to-date, with declining sales unnerving investors. Discounters, such as Aldi and Lidl, have aggressively cut prices and attracted customers away from the big supermarket giants.

Some fund managers, including Chris White, of the Premier UK Equity Income fund, have sold shares believing Tesco shares are “not worth the risk”. But could it be the ideal time to buy on bad news? We have gathered views from some prominent fund managers:

Alastair Mundy, who manages the strong-performing Investec UK Special Situations fund, said Tesco’s dividend yield, which rose 7pc today as the share price sank, is too tempting to ignore.

Mr Mundy told the Telegraph he welcomed the news, believing the shock will accelerate some of the change he thinks is needed.

"We think that is good as it probably brings forward mass simplification of the group," he said. He hopes the company will sell international assets and other companies such as Dobbies Garden Centres and video streaming company Blinxbox so it can "focus 100pc on how to take on the discounters".

"We think a focused price war on where discounters make their money is the likely outcome – it won’t be pretty but still believe Tesco have got more chance than most of coming out on top," he added.

Michael Clark, another highly regarded fund manager, continues to hold Tesco shares.
Mr Clark, manager of Fidelity MoneyBuilder Dividend fund and Fidelity Enhanced Income fund, said: "New CEO Dave Lewis asked employees to come forward with problems and this issue has no doubt arisen as part of this new policy of openness. I still think that we have to get this issue in proportion: £250m is not going to sink a company making £2bn of profits. Tesco is still a very large business whose fortunes can be restored.

"Sainsbury went through significant problems over a decade ago before finding stability again and restoring the dividend and shareholder value under Justin King. We see a similar development at Tesco over the next few years.”

He also remained committed after Tesco announced a cut to the dividend at the end of August.

He said: "While the profit reduction and the dividend cut are painful in the short term, we recognize that the new management needs maximum flexibility.

"Futhermore, we are confident that Tesco will, over time, be able to restore its standing with customers and create value for shareholders. With 28pc market share in bricks and mortar grocery and an even larger share of the online grocery market, Tesco remains a very strong business. We continue to believe that the shares will generate excellent returns over time."

Other City stock pickers are considering buying Tesco.

Simon Gergel, who manages the Merchants investment trust, said bombed-out Tesco shares could soar from their lows.

“After Tesco slashed its dividend as its new chief executive joined and Morrison’s announced a halving in underlying first half profits, the food retail sector is more unpopular than ever,” Mr Gergel said.

“One thing is clear; if the major food retailers recover their poise, the share price reaction will be significant as investor sentiment and valuations are depressed. The only thing more polarised than the food retail market itself is the views of investors in the sector.”

Respected investor Richard Buxton, who manages the Old Mutual UK Alpha fund, is also eyeing up the out of favour food retail sector, although he didn't want to comment today.

In a conference call to investors last month Mr Buxton said he was taking a look at the supermarket as a contrarian investment opportunity. Mr Buxton last held Tesco shares in 2010.

"We along with many others in the market are kicking through the numbers, trying to stress test what Tesco could choose to do: more price cutting, taking margins down, and the impact that may have on halting the growth of the discounters.

"Clearly there is a value opportunity here. There is a potential change story. We know the situation is unsustainable, and that has been recognised by the Tesco board."

The vast majority of fund managers, however, are avoiding Tesco. Data complied for The Telegraph in June found there are just 52 funds that hold Tesco, down from 225 in 2009.

Other well-known managers who still hold Tesco include Schroders' Kevin Murphy and Nick Kirrage via their Schroder Income fund. They declined to comment.

- kyle.caldwell@telegraph.co.uk

What to buy---TSCO or MRW or SBRY. To some extent problems at TSCO and MRW are out in the open, the big IF is, is there similar lurking at SBRY? Any thoughts?
2517

none

TSCO will sell off a lot of it add on's , and streamline the company. Lidl's produce are cheaper and better, i have started shopping there more now.

Put Option Agreement in relation to Tesco PLC

Still overvalued by 30% imo.

Oooooooooooooh! Handbags are out!

Just in from Sainsbury's:

From 2 October, your Brand Match coupon will just compare our prices and deals on brands with Asda.

Tesco will no longer be part of Brand Match.

Visit the Customer Service Desk in store or sainsburys.co.uk/brandmatch for more information.

From: http://www.ft.com/cms/s/0/2407849a-44cc-11e4-ab0c-00144feabdc0.html?ftcamp=published_links%2Frss%2Fhome_uk%2Ffeed%2F%2Fproduct

September 25, 2014 6:30 pm
Ashley’s gamble on Tesco divides opinion in the City
By Andrea Felsted, Senior Retail Correspondent

Newcastle Chairman Mike Ashley gives the thumbs up during the Barclays Premier League match at St James' Park, Newcastle. PRESS ASSOCIATION Photo. Picture date: Saturday September 20, 2014. See PA story SOCCER Newcastle. Photo credit should read: Owen Humphreys/PA Wire. RESTRICTIONS: Editorial use only. Maximum 45 images during a match. No video emulation or promotion as 'live'. No use in games, competitions, merchandise, betting or single club/player services. No use with unofficial audio, video, data, fixtures or club/league©PA
Mike Ashley, the billionaire retailer who likes a flutter, is taking a punt on Tesco.
Mr Ashley, who owns 58 per cent of Sports Direct, has entered into a derivative deal that gives him an interest in the fate of the struggling supermarket chain, just days after it announced that it had overstated first-half profits by £250m.



Even as other shareholders are taking flight, Mr Ashley is betting that the supermarket’s shares are oversold.
Sports Direct has sold a put option that gives Goldman Sachs the right to sell 23m Tesco shares to Sports Direct if they fall below a certain undisclosed exercise price, or receive an equivalent payment. If the shares are trading above the agreed price on the contract’s expiry, Sports Direct receives an undisclosed premium from Goldman.
Mr Ashley is no stranger to these kinds of transactions. In January, he entered into a similar deal with Goldman that could give him a 6.6 per cent stake Debenhams if its shares fall significantly.
Ashley and the Sage

Warren Buffett
Although it’s unlikely Warren Buffett ever got wild in Nottinghamshire, the legendary investor does share one similarity with Mike Ashley: they both like to sell puts.
See below
These kinds of arrangements, because they are of a relatively small size, do not require shareholder approval at Sports Direct.
But Mr Ashley’s share deals have raised eyebrows in among some investors and analysts who complain that Sports Direct should not be engaging in the sort of activity that is more commonly found in a hedge fund.
“I think people would rather Mr Ashley do something more conventional than potentially losing money punting on Tesco,” says Nick Bubb, the independent analyst.
But others say there is a clear strategic reason for Mr Ashley to take an interest in both retailers – Sports Direct could benefit from more access to their stores.
Since the bet on Debenhams, the department store chain has started operating a trial of Sports Direct concessions in two stores – Harrow and Southsea – and said it will possibly expand this further before the end of the year.
Chart: Mike Ashley's derivative bets
Sports Direct already has a relationship with Tesco. The supermarket leases space to Sports Direct inside eight stores in central Europe and four in Malaysia. Tesco also leases 11 UK store buildings to the sports goods retailer, but these are either beside existing Tescos or at sites where Tesco has closed a store.
The FT revealed last year that Sports Direct was in talks with Tesco to take space inside some of its large stores. However a deal has yet to come to fruition.
According to people familiar with the situation, there are three strands to Sports Direct’s interest. The first is taking excess space in Tesco stores to create Sports Direct concessions. Secondly, it could sell some of its products directly through Tesco stores. Finally, Tesco’s non-food online platform – Tesco Direct – already sells products for third parties, including House of Fraser. Sports Direct products could also be sold through Tesco Direct.
According to Jonathan Pritchard, analyst at Oriel Securities, the financial risk for Sports Direct is limited, and closer ties with Tesco would give it the potential to reach the millions of people who still shop at the UK’s largest supermarket chain.
For Tesco, the intervention could well be a mixed blessing.
As well as his already hefty to do list, new chief executive Dave Lewis now has to deal with Mr Ashley.


Chart: Fewer investors shorting Debenhams and Tesco

But Mr Lewis also has a ready made candidate to take some of the excess space in Tesco stores off of his hands. The arrangement with the sportswear retailer has already worked well in central Europe.
“Tesco have been very impressed with the footfall that Sports Direct drove to the stores in central Europe,” Mr Pritchard says.
Other retailers struggling with too much space, such as DIY chain B & Q, might welcome Mr Ashley’s presence. “B & Q would bite his hand off for this,” says Mr Pritchard.
Partly as a result, Mr Ashley’s new interest in Tesco is being interpreted in very different ways from his first put option on Debenhams.
The first put was widely regarded as an aggressive move, as analysts speculated that Sports Direct, with a market capitalisation of about £3.8bn could be looking to buy the department store chain, which has a market capitalisation of about £850m.

More video
But Sports Direct’s announcement of the Tesco put was openly supportive of the supermarket chain. The bet involves less than 0.3 per cent of the company’s shares and the group’s market capitalisation of nearly £16bn dwarf’s Mr Ashley’s group.
In addition to the two derivatives deals, Sports Direct has taken an 11 per cent stake in House of Fraser, which it has retained, despite the department store chain agreeing to be acquired by Chinese conglomerate Sanpower.
“He’s a maverick,“ says Mr Bubb. “You have to take him warts and all. Sports Direct is a great business, and sometimes he can be very clever. But sometimes he oversteps the mark.”
Mike Ashley’s puts and his links to the Sage of Omaha
It seems unlikely that Warren Buffett would have stripped to Tom Jones’ ‘You Can Leave Your Hat On’ in a Chinese restaurant in Nottinghamshire. But Mike Ashley, who did just that three years ago, does share one similarity with the Sage of Omaha. He likes to sell puts, writes Joseph Cottrell.
Sports Direct, the UK’s biggest sports retailer, in which Mr Ashley owns a 57 per cent stake, said on Thursday it had sold a put option on 23m Tesco shares to Goldman Sachs.

Homecoming" September 18, 2014 in Detroit, Michigan. The purpose of the invitation-only event of Detroit expatriats is to give the group a chance to reconnect, reinvest and reinvent with their hometown. The topic of Buffet's conversation was, "Why I'm Bullish on Detroit." (Photo by Bill Pugliano/Getty Images)©Getty
Warren Buffett
The put allows the bank to sell the shares to Sports Direct if their value ends up below an agreed strike price on the expiry date. That would imply Tesco’s recent fall from grace as one of the world’s largest retailers – due to accounting failures, profit destruction in the UK – has further to go. Sports Direct would then be paying up for cheap shares (or, it could pay the option’s cash value).
But, if Mr Ashley took a (Buffett-like) view of long-term value, Tesco might eventually sort its problems, and rebound – at which point Sports Direct’s equity stake would rise in value. And if the shares rebound before expiry, Sports Direct’s upside is the premium on the option itself.
Put like that, it might seem a fair bet. But the minority shareholders who provide Sports Direct itself with equity may not have been in it for derivatives bets.
Neither the strike price nor the expiry have been disclosed. Still, Tesco’s share price closed on the day before the put’s disclosure at 195p, so 23m of them were worth almost £45m. According to Sports Direct, its maximum exposure is £43m – that is, in the unlikely event Tesco’s price went to zero and it had to buy worthless shares. If the closing price was the strike price, this suggests the premium is £2m.
But another figure to note is Sports Direct’s financial assets held available for sale for the year which ended in April: £117m. Thus, £43m is a large bet involving a stake in Tesco that at 0.3 per cent, would confer little ownership control if it passed into Sports Direct’s hands.
Contrast Mr Buffett. Berkshire Hathaway’s best known put sales were made between 2004 and 2008, with long-term options on global equity indices. Berkshire shareholders know that they own an insurer and investment company, with a large ‘float’ of insurance premiums with which to fund such trades. Whereas Sports Direct – stripped down – sells sports kit.
Former Merrill Lynch banker behind Sports Direct’s deals
The mastermind behind Sports Direct’s derivative deals is New Zealand-born investment banker Jeff Blue, writes Andrea Felsted.
As Sports Direct’s strategic development director, Mr Blue in January advised the retailer on its purchase of shares in Debenhams. Days later, Sports Direct sold the stake at a £5m profit and entered into a derivative deal that could see it acquire an almost 7 per cent stake in the department store chain if the shares fall.
He has now helped Sports Direct take a punt on Tesco shares, by selling a put option to Goldman Sachs in relation to 23m shares in the crisis-hit supermarket chain.
The former Merrill Lynch banker, 43, has a long history with both Debenhams and Sports Direct’s controlling shareholder Mike Ashley. While at Merrill, he presided over the stock market flotations of both retailers in 2007. He also worked for Baugur, the Icelandic investment group whose UK arm went into administration.
Mr Blue left Merrill in April 2007 to join Baugur as head of retail, where he oversaw its £9.8bn retail portfolio. In February 2009, BG Group, the UK division of Baugur, went into administration.
Unfazed by the collapse, Mr Blue went on to set up a boutique financial services business – Aspiring Capital Partners – specialising in the European consumer and retail space.
His relationship with Mr Ashley was rekindled in 2010 when the billionaire sought his advice on a potential bid for outdoor goods specialist Blacks Leisure, in which Sports Direct had built up a 22.5 per cent stake. The bid was blocked by key supplier The North Face.
In 2012, Mr Ashley hired Mr Blue to lead Sports Direct’s deal activity.