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).

HC - in other words how can you ?

The market will be looking for profitable growth in the year to February 2014, with the consensus view expecting pre-tax profits to smash the £4bn mark that year.

Many investors would never of thought Tesco sp today would be far lower than when it crashed with Tesco announcing its profit warning. Read my posts back then and you can see many investors got it wrong jumping in for a quick turn around profit, that has not come yet.
PC will turn Tesco around but still not going to happen overnight.
As said before its a huge operation to pull off in 3 years let alone 1 year.
They already have gained market share, so sp should be somewhere near the bottom. I bet Warren B could not even answer that question :-))
BUT NO INVESTOR HAS A CRYSTAL BALL and as we have all seen anything can happen in this world.

buy rating unchanged. Tesco (LSE: TSCO.L - news) : Jefferies maintains buy rating and 400p target

..Tesco Drops Below £3

By Cliff D'Arcy | Fool.co.uk – 3 hours ago


......
Until the Eighties, Tesco (LSE: TSCO.L - news) was just another British supermarket fighting for shoppers' cash.

Tougher times for Tesco

In the Nineties, under the command of new chief executive and retail genius Sir Terry Leahy, Tesco began pulling away from the pack. Today, Tesco has a dominant UK market share of 30.8%, which is almost as much as those of Asda (NYSE: WMT - news) (17.4%) and J Sainsbury (16.5%) combined.

However, Tesco has had a bad 2012, with strong results abroad tarnished by weak growth in its home market, which accounts for nearly two-thirds (65%) of sales. As a result, Tesco shares have dived this year.

Five reasons to consider Tesco

As I write, they trade at 297p, having slipped through the psychologically important £3 mark earlier this morning. Here are five reasons why Tesco could be a bargain buy:

1. Market dominance

Investment guru Warren Buffett -- the world's third-richest man -- looks to invest in businesses with strong market dominance and wide 'competitive moats' around their business. For me, Tesco looks exactly the kind of firm that the Oracle (EUREX: ORCF.EX - news) of Omaha buys. After all, with worldwide sales above £72 billion, Tesco is the UK's grocery juggernaut.

To learn more about the mind and methods of the world's most successful investor, and to discover his favourite British business, please download your free copy of our latest report, The British Business That Warren Buffett Loves.

2. FTSE 100 (Euronext: VFTSE.NX - news) giant

At 297p a share, Tesco's current market value is nearly £24 billion, making it the 20th-largest firm in the blue-chip FTSE 100 index. As a result of being one of Britain's corporate elite, Tesco's shares are incredibly liquid, so they are easy to buy and sell, even in large quantities. Also, as one of Britain's biggest brands, Tesco is widely held by leading fund managers.

3. Delightful dividend

Right now, you can buy Tesco shares, sit back and bank a forward dividend yield of 5.1%, covered a healthy 2.3 times. With the Bank of England's base rate stuck at a lifetime low of 0.5% a year since March 2009, this is a delicious yearly cash return for income-seekers and dividend fans.

4. Single-digit PER

What's more, their recent 'Big Price Drop' means that Tesco shares are rated at just 8.6 times forward earnings. Rarely do investors get the opportunity to buy corporate powerhouses on such low ratings. To me, Tesco's earnings yield of 11.6% (the reciprocal of the price-to-earnings ratio) is a sure sign that investors should fill their boots.

5. Growing sales

Although Tesco has had a few setbacks in the UK, its sales keep growing. In fact, in the year ending 25 February, total sales were up by 7% (and ahead 11% in fast-growing Asia).

In April, I weighed up Tesco based on 10 indicators, giving it a thumbs-up at 329p. With its shares now a tenth (10%) cheaper in the recent market slump, the company appears even more attractive today.

> Cliff does not own any of the shares mentioned in this article. The Motley Fool owns shares in Tesco.

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Broker Jefferies thinks Tesco's first quarter update, out on Monday, should confirm group sales growth of 2.6%, or nearly 4% excluding foreign exchange effects. Tesco's first quarter runs to May 25th so last year's figures will include the boost from the Royal Wedding while this year's numbers will not get much benefit, if any, from the Queen's jubilee celebrations. The broker is assuming a slight improvement in like-for-like (LFL) momentum in most of the geographic regions in which Tesco operates, but the supermarket titan may have to go some to step up LFL growth in the US, where the comparative figures are tough. "On a divisional basis we estimate UK retail gains of 2.4%, international to grow by 2.5% (or 6.2% ex forex), and Tesco Bank to advance by 10%. This trajectory of performance would be slightly ahead of our modelling assumptions for the year (as comparables for UK sales soften considerably from here). Given recent currency movements we see little scope for forecast changes at this juncture," the broker opines. Of course, with pundits far and wide suggesting that Tesco has taken its eye off the ball in recent years in its home market, the key number everyone is likely to be looking at is UK LFL sales growth or, more probably, contraction. Jefferies forecasts UK LFL sales will be down 1.3% excluding fuel. Tesco is not used to LFL sales declining, but if Jefferies's forecast is correct then it will at least represent an improvement on the 1.6% slide in the firm's fourth quarter and the 2.3% reduction over Christmas. On the other hand, Nomura is more pessimistic and predicts a LFL decline excluding fuel of 1.7% for the UK, bearing in mind the wet late April/early May weather. "Changes to stores (whether on staff levels or on the fit-out) remain in the early stages, but we expect Tesco's step-up in promotional activity to have provided greater trading resilience," Jefferies said. Nomura says it is too early for numbers to be released for the shops Tesco has souped-up as part of its turnaround plan for the UK, but the broker is expecting commentary relating to the implementation of the labour phase of what it calls the "UK reset". "Following the 200-store trial, and using 4,000 specially trained managers, Tesco began the roll-out of its labour investment in late April into 450 large stores. We look for anecdotal updates on the progress of this initiative and potentially others to provide reassurance that the reset remains on track," Nomura said. As for the increasingly overseas operations, Jefferies reckons Europe (Chicago Options: ^REURUSD - news) will see LFL sales rise 0.5%, with Asia flat and the US up 7%. Nomura's predictions are for Europe to be down 0.2% on a LFL basis, Asia 0.4% lower (LFL), and the US up 5% on a LFL basis. Panmure Gordon said it is not looking for any fireworks from Tesco. "We look for -1% like-for-like sales, compared with -1.6% in Q4 [fourth quarter]. We expect International like-for-like sales growth to have improved slightly to 0.5%, with the US ahead by mid-single digits (against tough comparisons)," Panmure Gordon said.

http://www.dailymail.co.uk/money/markets/article-2156868/Price-war-threat-profit-Tesco-Morrisons.html

TESCO PLC

FIRST QUARTER INTERIM MANAGEMENT STATEMENT



PROGRESS ON OUR PLANS TO BUILD A BETTER TESCO




· Solid Q1 trading performance and good progress on our strategic priorities

· Another robust quarter for the international business, with Asia driving sales growth

· UK performance in line with expectations, and an improvement relative to the market

· Steady progress with Building a Better Tesco in the UK



Philip Clarke - Chief Executive




"Tesco has performed robustly in the first quarter despite subdued consumer confidence in all our markets.




http://www.moneyam.com/action/news/showArticle?id=4385413

Research Update. from HL.

Tesco buys digital music business for $17 million

LONDON | Thu Jun 14, 2012 7:11pm BST
(Reuters) - British group Tesco, the world's third-biggest retailer, has paid 10.8 million pounds to buy a digital music business, in a move which forms part of its plan to develop a presence in the online entertainment market.

The supermarket group, which recently launched a 1 billion pound recovery programme to stem a decline in its share of the British market, said on Thursday it would acquire a 91 percent stake in WE7, a free-to-listen, personalised internet radio service.

The acquisition will build on last year's purchase of online movie provider blinkbox, Tesco said, and was part of a strategy to build a foothold in the digital entertainment market.

RNS Number : 5523F

Tesco PLC

18 June 2012

Tesco ANNOUNCES deal WITH AEON in Japan

18(th) June 2012

In line with its previous announcement, Tesco has today entered into an agreement with Aeon, Japan's largest retail group.

Tesco will exit Japan in a two stage process. In the first phase Tesco will sell 50% of its shares in Tesco Japan to Aeon for a nominal sum. This will result in the formation of a joint venture with Aeon. As part of this, Tesco will invest a further c.GBP40m as a joint venture partner to finance further restructuring, after which Tesco will have no further financial exposure to the Japanese business or its operations.

Philip Clarke, Chief Executive Officer of Tesco Plc, said: "I thank our colleagues in Japan, who have done an excellent job for the business - in particular over recent months. We are very pleased to announce this deal with Aeon today, and are confident that this will deliver the best outcome for our staff, for our customers in Japan and for our shareholders."

Completion of this transaction is subject to usual regulatory approval.

Am i missing something? how can you enter a joint venture- pay approx £ 40m and then have no further finacial exposure to this market?

sounds as though Tesco are buying themselves out of a losing situation.

why the joint venture then?

Tesco are jumping ship in Japan.

robinhood, have a read here.

Tesco pays £40m to exit Japan
Supermarket chain Tesco, struggling with falling sales in the UK, has announced it will pay £40m to exit its Japanese business.

Tesco first opened in Japan since 2003, and has 117 shops in the country, in and around Tokyo. Harry Wallop and Amy Wilso
Analysts said Tesco should be pleased they had "washed their hands" of the loss-making Japanese supermarkets, but some said they were "disappointed" they had been forced to pay a rival to take it off their hands.

It also, once again, shines the spotlight on its Fresh and Easy business in America, which has still not made a profit for Tesco.

Tesco will sell 50pc of its shares in Tesco Japan to Aeon, the biggest retailer in that country, for a "nominal" sum. The two companies will then own the business as a joint venture, and Tesco will then put £40m into the business to pay for "restructuring". It is understood that this £40m payment will improve the chances of its 1,000 employees in Japan be transferred across to the new business.

After paying the money, "Tesco will have no further financial exposure to the Japanese business or its operations," the retailer said today. The remaining 50pc stake will be sold to Aeon at a later date.

Clive Black, analyst at Shore Capital, said: "Having to pay £40m to exit the market is a disappointment of sorts to our mind but it reveals the challenges of the Japanese market and caps the damage from what is a subscale business."

The Japanese supermarkets lost £25m last year and £35m the year before.

Philip Dorgan at Panmure Gordon said: "I don't think anyone really thought they'd make any money for the business. Paying £40m for someone to take it off their hands isn't a bad result. Frankly, in this climate it's nice to just get rid of it."

Tesco was hit in Japan from a combination of the difficult economy and not being big enough in the country. Its market share in the Tokyo area never reached more than 1pc. The company admits that it had failed to win over commuters from their usual local convenience stores to the Tesco Express format.

The exit from Japan after nine years highlights its other main loss-making business overseas, Fresh & Easy, based on the west coast of America, which lost £165m last year. Last week Tesco reported underlying sales growth at this business had slowed to 3.6pc in its first quarter from 12.3pc in the fourth quarter.

Tesco is not the only retailer to have struggled in Japan. Carrefour, the French supermarket owner, quit Japan in 2005 and Wal-mart, the US group, has found it difficult to increase the profitability its Seiyu group of supermarkets, which are a far bigger brand than Tesco.

Tesco first opened in Japan since 2003, and has 117 shops in the country, in and around Tokyo. The company said in August last year it was quitting the country because its business was not big enough to make it profitable.

In the entire FTSE 100 index, there is not a single company with a lower price-to-earnings (P/E) ratio, higher dividend yield and better forecast profit growth than Tesco.The shares trade on 8.8 times forecast earnings for 2013. The forecast dividend yield is 4.9%.21 FTSE 100 stocks are expected to pay a higher dividend than Tesco. The same number of FTSE 100 companies trade on a lower forward P/E. Only eight FTSE 100 companies trade on both a higher expected dividend and lower forward P/E than Tesco. None of those eight companies is expected to match Tesco's profit growth. At today's price, Tesco represents a unique proposition of blue-chip value, income and growth.Much of the investment discussion on Tesco describes the company as "struggling". That pessimism is not matched by the professional analyst community. They expect Tesco to deliver modest eps growth for 2013 of 1.0%, followed by 7.7% growth for 2014. The dividend is forecast to rise 1.2% for 2013 and by another 7.9% for 2014.Investors may have been encouraged by Tesco's recent announcement that it is withdrawing from the Japanese market. This decision leaves management more focused on the company's core markets. Worryingly, trading statements from rival firms such as Sainsbury 's suggest Tesco is losing UK market share. Tesco's success in the UK market had driven international expansion and shareholder returns. The company's current valuation suggests investors expect Tesco rivals to continue to gain ground on the market leader

Tesco may buy majority stake in Uyum Gida - paper

ISTANBUL | Tue Jul 3, 2012 8:36am BST
(Reuters) - British group Tesco (TSCO.L), the world's No.3 retailer, is interested in buying a majority stake in Turkish grocer Uyum Gida (UYUM.IS), Turkey's Vatan newspaper reported on Tuesday.

Uyum Gida said last August it had signed a one-year confidentiality agreement with a foreign investment fund to look into options for the company.

Vatan said Tesco was the company which emerged from talks as the main candidate.

Uyum Gida has 50 shops, while Tesco bought a majority stake in Turkish retailer Kipa in 2003.

25 EMA crossed 50 EMA

Upward trend to begin ?

BIG chart.,.

Ideal for analysis