Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Why Not Join the Tesco Recovery Bandwagon?

By Malcolm Stacey

13 October 2015 05:07

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Hello Share Shunters. Well, I’m having a terrible week. My new bed from Tesco (TSCO) arrived with a vital part missing. Then the Internet connection to my new home in York failed to work. And then...oh, never mind let’s look at Tesco.

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Comments

wildrides

13 October 2015, 06:56

Lovely city York ………… lived there for a couple of years back in 1980 -82 while my wife was doing her degree at St Johns in the city . Saw my first ghost there too ! a Roman soldier ……….. but thats another story. Good luck with Tesco ……… cant comment as we dont have one , only Morri & Asda of which the former seems to be struggling as it has an Aldi next door to it ( Town planners …….what do you do with them !) I am not an Aldi fan personally . It might be cheap , but you have to fight your way past the half unloaded pallets and boxs , the staff are so over worked they aint got time to assist you and the veg aint as fresh as Morri stuff . Good for cheap shite tools and badly made throwaway clothing though . One wonders how they do it so cheap …… actually we know …….by raping the third world with rip off wages and labour exploitation . Pricks my conscience so I stopped buying it . I can afford to pay fair so I should do so and leave Aldi for the poor folks harder off than me .
alcira16247

19 October 2015, 05:03

Malcolm

Can’t help but think your declaration of a Tesco recovery may prove somewhat premature.

With falling food prices, rising wage bill and cut throat competition contributing to a total collapse of operating margins, resulting in negative cash flow, add nett debt in excess of £10 billion, its a train crash waiting to happen.

Remember too, its still under SFO investigation for the £236 million accounting scandal and according to the Times (12th October) is facing a multi million dollar legal action launched by US pension and investment funds.

With its shares trading on an expensive forward P\E of 25 and even with some optimistic forecasts of a small dividend in 2017 I think Tesco is far from being presently investable.