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).

1 Jun HSBC 275.00 Buy

Just cannot see it. I read that by 2020 with market share and new build stores, Aldi and Lidl will be classed with the other 4 supermarkets as the big six. Surely with every new store opening, Tesco will come under future pressure.

time to buy .

They are being talked up by the brokers. :-)) Dave is not moving fast enough.

Hope you did not buy Tanker.


Motley fool -

The worst over?

Although shares in Tesco (LSE: TSCO) have picked up a little over the past two weeks, at 165p today they’re still 16% down from their highest level so far in 2016, which was towards the end of March.

The good news is that Tesco returned to profit for the year ended February 2016 — only a very small profit, but there are rises forecast for the current year and next, and that’s definitely the right direction. But the problem for me is that Tesco shares seem to be priced as if the bad days are over — even after two more years of forecast EPS growth, we’d still be looking at a P/E of more than 18 and at dividends that are a shadow of their former selves.

And with those results, chief executive Dave Lewis spoke of an ongoing “challenging, deflationary and uncertain market“. The price wars are not over — they are, in fact, still in full swing, with Lidl and Aldi opening new stores almost daily while Tesco, erm, isn’t. Tesco shares seem to keep attempting a recovery, only to dip back down again when the optimism proves unfounded — and I think the same could happen again if first-quarter results don’t shine.

Tesco vs. Sainsbury’s: which is better-placed to deal with the challenges ahead?

Proactive investor - Tesco will release a trading update Thursday, investors will be keen to know if its turnaround can continue.

The motely fool - The Cheshunt chain needs to start pulling rabbits out of hats to fight off the rampant rise of Aldi and Lidl. And I believe an elevated forward P/E ratio of 23 times for the current fiscal period indicates that now is certainly not a tempting time to pile-in.

(ShareCast News) - Tesco, Sainsbury, Asda and Morrison lost further market share to discounters as the Big Four all saw sales drop in the weeks following the Brexit vote, though as a whole the sector saw sales bounce back slightly on previous months.
A monthly report from research firm Kantar Worldpanel showed UK supermarket sales rose 0.1% in the 12 weeks to 19 July, having fallen 0.2% in the period to 19 June and 0.4% a month before that.

Grocery prices fell 1.4% for the period, which was the same rate of deflation as reported a month ago and the 24th consecutive fall.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said the EU referendum result appeared to have no immediate impact on the prices retailers were charging or consumer sales volumes, though it "remains to be seen" if the Brexit vote will bring about any price rises this year.

The impact that was clear was that big supermarkets lost sales and market share to discounters, appearing to back up recent research that found many shoppers were planning to switch to cheaper grocery brands as they batten down the hatches in anticipation of tougher times ahead. http://www.digitallook.com/news/news-and-announcements/clothing-retailers-face-more-tough-times-from-brexit-nielsen-survey-shows--1383556.html

Among the 'big four' supermarkets, Tesco saw sales fall the least, down 0.7%, and its 0.2% loss of market share to 28.3% was the group's slowest rate of share loss since March 2014 and was helped by an improved performance from its larger stores.

Sainsbury's sales slipped 1.1%, the second lower move in a row after a long upward streak, which dragged its market share down by 0.2 percentage points to 16.3%.

Sales dropped 5.6% at Asda, where new chief executive Sean Clarke is poised to launch a new round of heavy price cuts, with market share shrinking rapidly to 15.5% from 16.4%.

Morrisons sales fell 1.8%, which was its best results since January and is more to do with the sale of its convenience store estate late last year, while its market share fell by 0.2 percentage points to 10.7%.

The biggest poachers of market share from the big guns were Lidl, whose share rose to 4.5% from 4%, and Aldi, which now has 6.2% of the market, up from 5.6% last month.

Co-op's market share grew to 6.4% from 6.3%, Waitrose challenged the narrative with growth to 5.1% from 5.0%, while Iceland was up to 2.1% from 2.0%.

Short positions in Tesco are over four times the average compared to other FTSE 100 stocks. I have Never been convinced the turnaround is working.

"The SFO today charged three individuals, Carl Rogberg, 49, Christopher Bush, 50, and John Scouler, 48, with one count of Fraud by Abuse of Position, contrary to section 1 and 4 of the Fraud Act 2006 and one count of False Accounting contrary to s17 Theft Act 1968.

The alleged activity occurred between February 2014 and September 2014.

The above-named individuals have been requisitioned to appear at Westminster Magistrates’ Court on 22 September 2016.

The investigation into Tesco PLC remains ongoing."

Just wonder if the auditors will be involved, after all they have over seen the accounts and signed them off ?

Typically Auditors will claim they were given false figures, "Not me Gov" etc. - yet IF they have been doing "Additional Work" ( a common ploy to make dosh), they would have inside info. which they could not ignore when doing the AnAccounts - unless the s-c "Chinese Walls" are mighty thick.
Dir are well-paid to keep the ship afloat, profitable and in good nick for L-T shareholders, This fiasco is likely to RUN . . . and affect shareholders, so the sp must suffer in the Longer-term.
Add-in Market woes, price-cutting etc. and this Co needs a shake-up and new Maps for the next Captain at the Helm....
Yet I recall . . . . . . ( insert name ), were short of whisky ( was it? ) - the factory qty was short - yet Accs didn't bother to count. Indeed I vaguely recall they didn't visit the warehouse. As this was crucial to the Balance Sheet, you'd expect them to do this - rather like feeling the Thermos ( isn't light), before going on a Picnic. Agreed we rely on car Fuel-gauge yet if it doesn't move we'd check...

Perhaps a few in higher positions knew as well. Er scape goats comes to mind. :-))

Proactive investor - Should investors check out of titan Tesco?
Share
17:07 03 Oct 2016
According to one City heavyweight, the answer is a resounding yes.

Does Tesco offer anything extra to the investor?
Is it worth getting out of Tesco PLC (LON:TSCO) ahead of its interim results statement?
Well according to one City heavyweight, the answer is a resounding yes.
The recent run up in the share price - around 25% since June - flatters the grocer.
READ - Week Ahead: Food price deflation a concern at Tesco
JP Morgan Cazenove, in a note previewing the figures this Wednesday (October 5), said pension worries and an overstretched balance sheet still haunt the group.
It also points out that consensus profit forecasts have been progressively pegged back over recent months.
This is to reflect a less than stellar performance from the core UK supermarket operation.
Remember, Tesco, J Sainsbury plc (LON:SBRY),  WM Morrison Supermarkets (LON:MRW) and Wal-Mart owned ASDA are under siege from German discounters Aldi and Lidl, which are making significant market share gains.
Sainsbury last week unveiled a 1.1% decline in underlying sales in the last quarter and received a drubbing on the day of the update.
Currently changing hands for 183p, JPM reckons the Tesco is worth 135p a share.
The broker remains ‘underweight’ on the stock and believes the market has become ‘overexcited’ so   far as Tesco is concerned, particularly given the difficult market backdrop.
As the sector’s 800 lb gorilla, Tesco should be better placed to use its muscle to resist erosion of its market share.
First quarter figures announced in June, at least showed the core UK business registering year-on-year growth in like-for-like sales.
Underlying sales rose 0.3%, with volumes up 2.2% and the number of transactions up 1.7%, which tells us that food price deflation remains a problem for supermarkets.
“Fierce price competition and promotions are likely to remain a squeeze on margins for some time and the revised strategy is going to take time to implement.
"Investors backing the new management will be hoping that the signs of improvement in the June results will, like the share price, have continued,” suggested analyst Graham Spooner at The Share Centre.
Meanwhile, rival Morrisons' recent half-year results showed the floundering chain’s decision to take the fight to the hard discounters was showing signs of working.

Pop.

As the old man used to say '' what's the profit lad''. To early to tell yet. Still a huge pension deficit.

Proactive investor

Is Tesco overvalued? City heavyweight says share needs to fall 20%
Share
15:43 06 Oct 2016
Tesco shares are trading at the higher end of an optimistic guidance, according to JP Morgan Cazenove.

JPM has an 'underweight' rating on Tesco, with a 135p target.
A heavyweight City broker reckons shares in Tesco PLC (LON:TSCO) would have to fall by 20% before it represents decent value.
JP Morgan Cazenove, in a note to clients, made the call following the grocer’s interim results.
Detailed analysis revealed the quality of the earnings “beat” was “rather low”, it said.
“We separately believe [chief executive] Dave Lewis has set himself challenging targets in the context of a very difficult industry backdrop, where all the different moving parts are not within his own control,” the American bank added in a note to clients.
“We believe the shares price in the higher end of an optimistic guidance.”
JPMC reiterated its ‘underweight’ recommendation on the stock and its 135p a share valuation of the stock.
At 8.40am, Tesco was changing hands for 203p, down 2%.
On Wednesday Tesco said the all-important UK like-for-like revenues grew by 0.6% in the six months to August 27. That represented the third straight quarter of growth.
Volumes were up 2.1% and transactions were ahead 1.6%, which means Tesco cut prices to kick-start growth. In fact Tesco said prices had fallen 6% over the last two years.
The improvements leave the grocer “well placed” to achieve £1.2bn of operating profit for the full-year. In the six months the figure was £596mln on turnover of £24.4bn.
CEO Lewis and the team wants to rebuild operating margins to 3.5-4% by 2019/20 by implementing £1.5bn of further cost cuts.
"We have made further strong progress in the first half, with positive like-for-like sales growth across all parts of the group as we re-invest in our customer offer whilst rebuilding profitability in a sustainable way,” the Tesco boss added.
Share

Ian Lyall

Article is interesting. May be JPM on wrong side of the trade!!!!!!!

Shorts being gently squeezed.!!!!!!

i know the chart is good, but i really cannot get myself to even consider s'market stocks