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).

Have to think if it was going to tank, today was the day. January time to go short. In the meantime Buy order left (don't want you getting confused Harry :O). ). SB @ 402.2 tgt 420.0 stop 397.0

Tesco rose despite reporting a drop in like-for-like sales in its UK stores by 0.9% in the third quarter compared to the equivalent period of 2010. The figure excludes income from VAT and Petrol, but is in line with the performance during the second quarter

Easily done, CC!!! I've often wondered why spread betters don't always open contra positions with tight stops so that whichever way the sp goes, they are covered. My confusion continues unabated!!!

Harry not sure what you mean. What would be the point? I use spreadbetting to hedge or add to stocks that I own and trade UKX also as a form of tax free income.

Ah, confused CC? Welcome to my world! ;o)

Questor share tip: Tesco is solid not spectacular





{ Garry White, 7:16, Friday 9 December 2011

Many of the retailers in the UK are having a tumultuous time and Tesco (LSE: TSCO.L - news) is no exception. Short-term challenges remain, but the long-term growth story is intact.

Tesco 397.2p+0.3 Questor says BUY

UK same-store sales fell by 0.9pc in the third quarter of the year when petrol and VAT are excluded the fourth consecutive quarter this has happened. Obviously, the recent Price Drop has had a deflationary effect, but Tesco says that this has resulted in stronger food volume growth adding 1pc to volumes. Under the scheme, Tesco cut the price of 4,000 items to attract new customers.

In April, Tescos new boss Philip Clarke admitted that the companys UK performance wasnt good enough.

We didnt achieve our planned growth in the year and this was only partly attributable to the deterioration in the consumer environment during the second half. We can do better and we are taking action in key areas for example, to drive a faster rate of product innovation and to improve the sharpness of our communication to customers, Mr Clarke said.

These results have demonstrated that the turnaround has not yet happened in the companys home market but Questor feels confident that a turnaround will eventually come. Indeed, if inflation behaves how analysts predict next year, this could be a positive for the whole retail sector as the squeeze on household budgets eases.

RBS (LSE: RBS.L - news) is forecasting that price rises as measured by the Retail Price Index (RPI) will fall from 5.4pc in October to 2.4pc by the end of 2012 and hit 1.9pc in 2013.

The groups operations in Thailand were also impacted by the disastrous floods last month. Like-for-like sales growth in the Asian nation fell to 1.4pc in the quarter compared with growth of 7.5pc in the second quarter of the year. In total, 100 of its Tesco Lotus stores in the country are still not operating, although they are all expected to reopen by January.

Results for the group as a whole were in line with market expectations. In the 13 weeks to November (Stuttgart: A0Z24E - news) 26, sales including petrol rose 7.2pc and 5.4pc when fuel sales were excluded.

The one thing that differentiates Tesco from its UK competition is international footprint. This is arguably why Warren Buffett, the worlds most famous investor, bought in to the company in 2007. Last month, Mr Buffett picked Tesco as his top European investment for the long-term investor.If the price came down some on Tesco Id buy some more of that, he told CNBC.

Like-for-like sales in the US rose 11.9pc, which is a slowdown on the 12.4pc seen in the second quarter. The operation is still not profitable.

Same-store sales in the Czech Republic fell 0.3pc, with like-for-likes in Turkey down 2.6pc and in Malaysia 5pc lower. Tesco put the falls in Turkey and Malaysia down to the later timing of Ramadan this year.

Management is comfortable with consensus expectations, but there is obviously a great deal of caution heading into the key Christmas trading period. As one analyst said yesterday, the results were solid rather than spectacular.

The current year earnings multiple is 11.2, falling to 10.1 and the prospective yield is a respectable 4.9pc, rising to 4.3pc in the year to February 2013.

The shares were tipped as a buy on December 14, 2008, at 329p and they are up 20pc, compared with a FTSE 100 (Euronext: VFTSE.NX - news) up 29pc. They have been tipped as high as 421.85p. The shares remain a buy.

..Questor share tip: Tesco is solid not spectacular

By Garry White | Telegraph Thu, Dec 15, 2011 17:14 GMT



Many of the retailers in the UK are having a tumultuous time and Tesco (LSE: TSCO.L - news) is no exception. Short-term challenges remain, but the long-term growth story is intact.

Tesco 397.2p+0.3 Questor says BUY

UK same-store sales fell by 0.9pc in the third quarter of the year when petrol and VAT are excluded the fourth consecutive quarter this has happened. Obviously, the recent Price Drop has had a deflationary effect, but Tesco says that this has resulted in stronger food volume growth adding 1pc to volumes. Under the scheme, Tesco cut the price of 4,000 items to attract new customers.

In April, Tescos new boss Philip Clarke admitted that the companys UK performance wasnt good enough.

We didnt achieve our planned growth in the year and this was only partly attributable to the deterioration in the consumer environment during the second half. We can do better and we are taking action in key areas for example, to drive a faster rate of product innovation and to improve the sharpness of our communication to customers, Mr Clarke said.

These results have demonstrated that the turnaround has not yet happened in the companys home market but Questor feels confident that a turnaround will eventually come. Indeed, if inflation behaves how analysts predict next year, this could be a positive for the whole retail sector as the squeeze on household budgets eases.

RBS (LSE: RBS.L - news) is forecasting that price rises as measured by the Retail Price Index (RPI) will fall from 5.4pc in October to 2.4pc by the end of 2012 and hit 1.9pc in 2013.

The groups operations in Thailand were also impacted by the disastrous floods last month. Like-for-like sales growth in the Asian nation fell to 1.4pc in the quarter compared with growth of 7.5pc in the second quarter of the year. In total, 100 of its Tesco Lotus stores in the country are still not operating, although they are all expected to reopen by January.

Results for the group as a whole were in line with market expectations. In the 13 weeks to November (Stuttgart: A0Z24E - news) 26, sales including petrol rose 7.2pc and 5.4pc when fuel sales were excluded.

The one thing that differentiates Tesco from its UK competition is international footprint. This is arguably why Warren Buffett, the worlds most famous investor, bought in to the company in 2007. Last month, Mr Buffett picked Tesco as his top European investment for the long-term investor.If the price came down some on Tesco Id buy some more of that, he told CNBC.

Like-for-like sales in the US rose 11.9pc, which is a slowdown on the 12.4pc seen in the second quarter. The operation is still not profitable.

Same-store sales in the Czech Republic fell 0.3pc, with like-for-likes in Turkey down 2.6pc and in Malaysia 5pc lower. Tesco put the falls in Turkey and Malaysia down to the later timing of Ramadan this year.

Management is comfortable with consensus expectations, but there is obviously a great deal of caution heading into the key Christmas trading period. As one analyst said yesterday, the results were solid rather than spectacular.

The current year earnings multiple is 11.2, falling to 10.1 and the prospective yield is a respectable 4.9pc, rising to 4.3pc in the year to February 2013.

The shares were tipped as a buy on December 14, 2008, at 329p and they are up 20pc, compared with a FTSE 100 (Euronext: VFTSE.NX - news) up 29pc. They have been tipped as high as 421.85p. The shares remain a buy

Frustrating to say the least, sorely tempted to get back in long again here. Market driven by news, fundies and technicals totally immaterial. See what happens over the weekend and Monday, any hint of a possible Santa rally may be worth a punt but not holding my breath.

I thought you might be tempted by the graph. If I were a s/b'ing man I would definitely be having a shot at c405p again. Surely a no-brainer?

If I could work out what a no-brainer trade was Harry, I wouldn't hesitate. :O)

High of 387p today! I rest my case! Worth continuing maybe?

Interim Divi payment Friday, folowed by Xmas trading statement 12/01. I'm out for now regards the spreads, I can't see much upside from here Harry. Hope I'm wrong, may take another look New Year. Good Luck.

If ever Tesco needs a Santa rally it's now, imho. If support goes at 380.0, 360 distinct possibility. And even if it does rally will need to get above and stay above 410.0. Just my opinion.

You were right Harry, opened @ 404.20 no brainer trade. Maybe you should consider S/Betting, even at just £10 a point would have made yourself an easy (383.0 to 404.20) £212 tax free. I use Cap Spreads :O) .

If only they were all that easy to spot! I usually get it badly wrong.

MRW - is a classic trending chart - it has recently broken above 305.

Indeed skinny :O)

The Sunday Times - Share tips for 2012 - Published 1/1/2012
Today's Business section of the Sunday Times has an article called "Our share tips for 2012" in which Sunday Times staff pick the shares they believe will do well in 2012. Their share tips for 2012 are:


Tesco - Buy at 403.4p

3 January: TSCO - ING Barings: Reiterates Sell - Old TP: 360p not revised.

Wee punt long on the spreads @ 385.7 been hammered along with MRW and SBRY, on the premise that the market always does the opposite of the obvious :O) tight stop 378.7.