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).

TESCO AGREES TO SELL HOMEPLUS

Highlights:

· Proposed sale of Homeplus to a group of investors led by MBK Partners and including Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Temasek Holdings (Private) Limited (the "Disposal"), following competitive sale process

· Represents enterprise value of £4,240 million on cash and debt free basis

· Cash consideration of £4,004 million before tax and other transaction costs

· Significant reduction of £4,225 million in Tesco group's total indebtedness from net cash proceeds and associated reduction in capitalised lease and other commitments

· Completion is expected in calendar Q4 2015, conditional on Tesco shareholder approval and regulatory approvals in the Republic of Korea

ShareCast News) - The entire board of Tesco has bought less than £350,000 of shares in the supermarket chain, and chief executive Dave Lewis has yet to buy any, despite being in charge for a year. The lack of share purchases by Lewis and Alan Stewart, the finance director, has raised eyebrows among corporate governance pressure groups and shows that the Tesco executives have not been willing to back their turnaround plan by putting their own money into the retailer. - The Guardian

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The sp has a lot further to fall. Lidl along with announcing the living wage wants a 1000 stores. A store in near enough every town. Dave Lewis must be under immense pressure as he has now been in the seat for over a year and with up till now no real answers in stopping the loss of market share. I cannot see him lasting, if the rot does not stop fast.


Also Lidl has announced that prices will not be increased to accommodate the living wage increase. Tesco will never match this. Every new store opened by Lidl will have Tesco staff queuing at the door if they do not match the wage increase.

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Tesco and Morrisons are now expected to follow suit and announce wage increases as the battle among supermarkets intensifies and moves from price cuts to staff pay.

Interim next week, went long (SB) yesterday @ 166.08 trade only, can only be a technical bounce but you never know been hammered. Trailing stop loss.

Tesco profit slump shows turnaround task ahead

Taken profits 192p. See how interim goes tomorrow.

i think you're very wise though assuredly not brave enough to short

Still think they will announce market share loss.

of course, but it's been well telegraphed

Proactive investor - Cantor Fitzgerald fears the results could be “very disappointing” for investors, adding that, in complete contrast to Sainsbury, it expects Tesco to issue more profit downgrades.

What, it says, is key for investors to watch for, is the strategy presented by “Drastic Dave” to rebuild cash generation and reduce debt by 2020.

The broker reckons this plan needs to be “very convincing” if Tesco is to avoid a rights issue and maintain the current share price.

Half Yearly Report

Transformation on track

Broad-based improvement across the Group


· UK 1H like-for-like sales performance of (1.1)%, including further improvement in 2Q

· International 1H like-for-like sales growth of +1.0%; both Europe and Asia positive in 2Q

· UK focus on service, availability and price maintaining momentum in challenging market

- Transactions up +1.5%; volumes up +1.4%

· £354m Group operating profit - investing for customers and rebuilding profitability in UK

· On track to deliver £400m annual cost savings from Group restructuring investment

· Significant progress made on balance sheet priority with sale of Homeplus in Korea and confirmation of move to defined contribution pension scheme in UK

· Portfolio reshaping concluded; dunnhumby retained; firm focus on generating cash from retained assets

Dave Lewis, Chief Executive:


"We have delivered an unprecedented level of change in our business over the last twelve months and it is working. The first half results show sustained improvement across a broad range of key indicators.

In the UK, we continue to improve all aspects of our offer for customers, resulting in volume growth which is allowing us to create a virtuous circle of investment.

Our transformation programme in Europe has accelerated growth and reduced operating expenses, and in Asia, we have gained market share in challenging economic conditions.

We have concluded our portfolio review with the sale of Homeplus, our business in Korea, enabling us to take a significant step forward on our priority of strengthening the balance sheet. Further progress will be driven by continuing to increase the level of cash generated from our retained assets."


more...

Certainly hasn't tanked so far on interim result, depends if the market believes or has confidence in the main man. Buy order left on spreads @ 194p if triggered tight stop.

LATEST BROKER VIEWS

Date Broker New target Recomm.
7 Oct Cantor... N/A Under Review
7 Oct Exane BNP... 230.00 Outperform
6 Oct Barclays... 240.00 Equal weight
5 Oct Cantor... N/A Under Review
5 Oct JP Morgan... 150.00 Underweight
30 Sep Jefferies... 185.00 Hold
24 Sep Nomura 210.00 Neutral
17 Sep Exane BNP... 230.00 Outperform
15 Sep Kepler... 176.00 Hold
8 Sep Exane BNP... 230.00 Outperform
Broker Recommendations for Tesco

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Additionally, the pension deficit rose to £4.2bn, from £3.9bn at the end of the first half of the year

Attempting to breach 200p. Stop to entry for risk free trade.

LATEST BROKER VIEWS

Date Broker New target Recomm.
8 Oct Beaufort... N/A Hold
8 Oct Jefferies... 185.00 Hold
8 Oct Barclays... 225.00 Equal weight

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