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-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).

You shop at Tesco E/L.. well really how down market of you (quality and taste wise that is).. serves you right you Tory cad -):

Market Buzz

Tesco in danger of £500m accounting scandal fine, says Cantor

Mon, 25 January 2016




Tesco Quote more






Price: 157.15

Chg: -3.40

Chg %: -2.12%

Date: 15:05



FTSE 100 Quote


Price: 5,881.29 Chg: -18.72 Chg %: -0.32% Date: 15:05

(ShareCast News) - Tesco may be slapped with a fine of up to £500m by the Serious Fraud Office over its £326m accounting black hole, according to Cantor Fitzgerald analyst Mike Dennis.
He said the SFO's findings, possible fines and trading restrictions on Tesco, after an investigation launched in 2014, are due to be announced this week.

Dennis said the SFO could fine Tesco more than 1% of its UK grocery sales (£350m-plus) and force the group to repay suppliers £100m of cash payments over several years, as well as identify individuals for prosecution.

"We believe, this in turn could open the way for shareholder redress."

He noted that Tesco's previous auditors, PwC, said "accounting for the amount and timing of recognition of commercial income may require the exercise of judgement" or in the case of Tesco's management and accountants a lack of judgement between contractual payments and illegal demands.

"The point is that maybe the SFO has calculated, like we have, that Tesco UK's 'back margin' supplier allowances grew by £1.7bn over the last five years to £2.4bn by February 2014 and accounted for 30% of Tesco's total cash profit, having previously only been around 25.

"£1.7bn or more is a lot of additional cash payments over a five year period of falling LFL sales volumes."

Dennis said the SFO should realise the 'back margin' payments received by Tesco were probably only a fraction of the total actually demanded, meaning the scope of the fraud is far greater, covering more categories than first thought.

'Back margin' is cash provided by suppliers in return for preferential treatment in store layouts and promotions.

In 2014, Tesco suspended four of its executives after the company uncovered an accounting issue that led it to overstate its half year profit guidance by £250m.

Tesco's chief executive Dave Lewis said at the time that he had found out profits were overstated as a result of the "accelerated recognition of commercial income and delayed accrual of costs" - or to put it simply, the company was booking profits from suppliers before costs.

At 1444 GMT, Tesco shares were down 2.5% to 156.70p.

More bad news today it would seem.

Killing the company.


Tesco-slash-pay-staff-working-overtime-late-nights-Bank-Holidays

Chart of the week: Huge upside for BHP and Tesco?

Finals Wednesday.

Meant to be doing better from what i read .

Had a wee punt Jimmy, I haven't got a clue how to value these. Seems to be the 'housewife choice'. In at 191.6 on the spreads, see how it goes may well be out hopefully with a profit sometime tomorrow and then see what happens on Wednesday.

this isn't a share i follow, in common with any other supermarket shares
however, on hearing the numbers this morning, i assumed sp would react very positively
clearly not the case, even in today's strong market

I agree cynic. Making the right noises and sp has had a good run from the lows. On watch list. Despite the sudden upturn I'm still reluctant to buy anything let alone these till after the referendum.

6% down.

Obvıously profıts not good enough for such a domınant player!!!!!

Reckon as always....selling overdone and believe -6% today will be +2/3% manana.
(seen it done it)