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).

That's me out for now. Flogging a dead horse. Good luck snip. If we get a Santa Rally it may bounce, meantime on sidelines.

to have and to hold for me Chris. My spread betting days are long gone. Stop loss will protect and I can`t see tesco disappearing. Part of my well balanced and pretty defensive portfolio, now in drawdown so rather conservative

Telegraph,Trouble-for-Tesco-as-its-shares-close-at-18-year-lows.

I personally believe Lewis has no answers. He may come under pressure by the spring or before.

Important Christmas period trading statement 14 Jan 16

Tesco latest adverts are cringeworthy. Reckon we might bet a bounce back before Christmas before the numbers are released for holiday trading period. Its anyones guess what the market will do then.

The television used to be blitzed with Tesco adverts this time of the year ,in past years.
They have clearly cut the advertising budget.

Aldi-Lidl-sales-leap-15-shoppers-hunt-festive-bargains-Asda-Tesco-languish-behind.

nice to see tsco normalising, I removed the SL because of oil/ukx factors and am holding

changed me mind. Tsco not looking attractive today and can`t blame ukx. Am out

More chance of seeing £1 than £2 in the near future.

Aldi spends more on Christmas advertising and Tesco cuts. Should not cut the advertising budget at any cost.



tesco-sainsburys-slash-traditional-christmas-ad-spend-30%

Tesco’s biggest investor slashes stake

29 December 2015 By Jill Geoghegan



Tesco’s biggest investor, Norway’s Government Pension Fund Global, sold a large portion of its stake in the supermarket in the run-up to Christmas.


The £570bn fund, run by Norges Bank Investment Management, sold 27 million shares in Tesco last week, according to The Sunday Times. Since August, it has sold a total of 83.5 million shares in Tesco, worth more than £125m.

The latest sale takes its holding in Tesco to below 6%.

Supermarkets are having a bad time of things, so I suspect is that Norges Bank Investment you highlight - but why wait until now to sell half ( was it?) their holding? - That looks like carelessness. Dec 2013 would have made more sense.... do we know "when" they bought-in?

Until Supermarkets realise they don't need to stock every brand at high prices . . . .
Their "Turnover" will fall as folks spend less ( But Folks will do that anyway - it's the way many of us live ). Supermarkets need to realise that Investors are after ROE - the profit-margin is the thing and if they can turn the money over several times - that's very helpful.

The likes of Debenhams [ DEB ], appear to have continuous "Sales" - so I wonder that they aren't paying too much for Stock ( and expecting to sell it High ), so they end up nearer to "Cost" - My suggestion is that the Buying Department heads take a similar cut in salary - after all, they got the Buy-price wrong, didn't they?
Sales should be to shift the 1-2% of stock that's just not moving - so they can re-employ that money again.
EDIT (16Jan2016)- TSCO is 164 - a significant low.... maybe soon, time to buy.

Tesco-shares-rally-after-Deutsche-Banks-change-of-heart.

One has to ask are these brokers in dreamland ?

6 Jan Barclays... 225.00 Equal weight
6 Jan Exane BNP... 195.00 Outperform

Market Buzz



Fri, 08 January 2016

Tesco rallies on Barclays upgrade



Tesco Quote more


Price: 147.30

Chg: 8.10

Chg %: 5.82%

Date: 15:10



FTSE 100 Quote


Price: 5,947.78 Chg: -6.30 Chg %: -0.11% Date: 15:10

(ShareCast News) - Tesco flew to the top of the FTSE 100 on Friday as Barclays upgraded the stock to 'overweight' from 'equalweight'.
It said recent share price underperformance has left Tesco's valuation at attractive levels, although the bank remains conscious of the headwinds facing the UK food retail market.

"In particular, it now offers a reasonably visible double-digit free cash flow yield and is trading in-line with Sainsbury's on an EV/sales basis for the first time in many years," Barclays said.

In addition, it reckons there are a number of likely helpful catalysts in the coming months.

Barclays expects the full year results in April will shed more light on the cost saving opportunity, together with some clarity on guidance.

The resetting of the management remuneration targets to adjust for the Korean disposal should also give more insight into the potential margin upside, it said.

Still, Barclays noted the threat of the discounters to the UK supermarket sector

"Although we believe recent market share data provides a little room for encouragement. The potential upwards pressure from the Living Wage remains, although we do not expect a visible impact in the near future."

Other factors could turn in Tesco's favour, Barclays added. UK food deflation may start to ease off this year, supermarket spending could show more benefit from falling fuel prices and discount rates may help erode the company's pension deficit.

"There are no guarantees on any of these points but we tend to think the risk profile is tilted in Tesco's favour."

The bank cut its price target on Tesco to 190p from 225p.

At 0910 GMT, Tesco shares were up 5.5% to 146.85p.

On the way back up ...

Jefferies International Hold 155.40 185.00 185.00 Reiterates

3Q and Christmas Trading Statement 1516

A strong Christmas at Tesco
Putting the customer at the heart of everything we do

Trading statement for 19 weeks ended 9 January 2016:

Christmas (six weeks ended 9 January 2016)
· Group like-for-like sales growth of +2.1%
o UK like-for-like sales growth of +1.3%
§ Customer satisfaction improved - all measures up between +3% and +5%
§ Customer transactions up +3.4%; volumes up +3.5%
o International like-for-like sales growth of +4.1%

Third Quarter (13 weeks ended 28 November 2015)
· Group like-for-like sales performance of (0.5)%
o UK like-for-like sales performance of (1.5)%
§ Reflects impact of lapping unsustainable couponing in prior year
o International like-for-like sales growth of +2.9%

more....

Found a hair in one of our 'Tesco's Finest' mince pies so took the packet and remaining mince pies back to CS.

Received a very nice letter from HO apologising for it, explaining what is supposed to happen ordinarily and telling us what they are doing 'about looking into it', together with a Gift Card to recompense for our time in having to deal with it all duly loaded up with some 'spenders'.

Nice. (I spotted the hair anyhow before popping the mince pie in my mouth).