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).

IF momentum continues can see 225p as a target for a trade long. As an investment going forward not so sure, but who knows :0)

PS

Can recommend their smoky bacon, better than Markies :0)

3Q and Christmas Trading Statement 16/17

SUSTAINED STRONG PERFORMANCE AT TESCO:
THIRD SUCCESSFUL CHRISTMAS; +1.1% GROUP LFL GROWTH FOR LAST 19 WEEKS

Headlines


Third Quarter (13 weeks ended 26 November 2016)

· Group like-for-like sales growth of 1.5%

o UK like-for-like sales growth of 1.8%

§ First quarterly market share gain since 2011

§ Eighth consecutive quarter of like-for-like volume growth

o International like-for-like sales growth of 0.6%, building on last year's strong performance and reflecting a more competitive environment in Poland

Christmas (six weeks ended 7 January 2017)

· Group like-for-like sales growth of 0.3%

o UK like-for-like sales growth of 0.7%

§ Food like-for-like sales up 1.3%, with significant market outperformance in fresh food

§ Impact of (0.8)% on total UK like-for-like sales from not repeating Clubcard 'Boost' promotion, leading to lower general merchandise sales

§ Strong performance in clothing and toys, with sales up 4.3% and 8.5% respectively

o International like-for-like sales performance of (1.2)% reflects a particularly strong seasonal performance last year in addition to weaker consumer spending in Thailand

Dave Lewis, Chief Executive:
"We are very encouraged by the sustained strong progress that we are making across the Group. In the UK, we saw our eighth consecutive quarter of volume growth and delivered a third successful Christmas. Our fresh food ranges proved particularly popular, outperforming the market with great quality, innovative new products and even more affordable prices. Internationally, we have continued to focus on improving our offer for customers in challenging market conditions.

We are well-placed against the plans we shared in October to become more competitive for customers, simpler for colleagues, and an even better partner for our suppliers, whilst creating long-term value for our shareholders.

I would like to thank all of our colleagues for everything they have done to serve our customers brilliantly over this very busy period."

more.....

so why the drop in sp .

PE of 20+ means the update had to be good, the market seems unimpressed, disappointed even.
2517

Sales may be up, BUT WHAT ABOUT PROFIT ? Aldi and the likes are marching on with store openings. As said before Tesco cannot match Aldi with prices, due to overheads.
Just not geared for these price wars. Only going one way and that is huge price wars.

Tesco shares worth 17% more

Went long this morning, spread bet @ 204.20p stop 194.20 initial target 220p.

There's nothing like a consensus!!

Barclays Capital Overweight 207.25 235.00 235.00 Reiterates

Goldman Sachs Sell 207.25 150.00 150.00 Reiterates

16 Jan
Kepler...
205.00
Hold

Really putting their neck on the block there!

I suppose they are saying all the news at the present time is priced in. :-))

No sense of humour obviously :0)

You need one in this world Chris. lol

Not kidding there dc :0)

At least one! :-)

Expect to get stopped out today, clinging to 200p so far.

Still clinging.

Market buzz -Food & drug retailers were also sent packing after Exane BNP downgraded its recommendations on shares of Tesco and Sainsbury.

The bank cut Tesco to 'underperform' from 'neutral' and pushed the target price down to 175p from 200p pointing to a high risk of de-rating given a building risk that inflation isn't fully passed through to the shopper, a tougher industry volume outlook and nothing in its recent consumer survey to prove volume growth is a given.

It cut Sainsbury to 'neutral' from 'outperform', keeping the price target at 255p.

"With our target price now a little below the current share price and a building risk cost inflation isn't passed through to the shopper smoothly, we cut our rating," it said.