Hello Share Breakers. The urge to sell shares as they’re not doing very much at the mo is strong. But to cash in and charge into higher interest-paying building societies would be unwise in my humble opinion. For the following reasons.
I am not a regular shopper at Tesco (TSCO), primarily because I live much closer to a very nice J Sainsbury (SBRY) store which suits the family very well. I have always hugely rated Tesco as a business though and have made decent money on the shares, especially when “Tesco Dave” turned it positively around a few years back. The volatility in September/October last year provided a great opportunity to reload at a sub two quid share price and a couple of months ago I observed that “if you are a pension fund investor…keep on holding its shares”. And, despite them currently remaining in the 260-270p range, owning Tesco shares remains so much more attractive than boring old government bonds following a trading update today.
It is really important in the investment world to have the scope to be greedy when others are fearful, and fearful when others are greedy. However, you do have to get your timing at least partially correct, otherwise the financial markets can easily make you look very stupid irrespective of how conceptionally smart you are. The question then for UK investment watchers is whether “cash raised via IPOs on London’s markets tumbled by over 80 per cent in the first quarter” is an opportunity or not?
Hello Share Twiddlers. Though this jolly punter expects most shares to rise in the next month or so, I don’t have the same enthusiasm for the supermarkets. I will not be buying shares in Tesco (TSCO) or Sainsbury (SBRY). The same goes for the online supermarket Ocado (OCDO). In fact, if I were a shorter, I might put all three of them in my sights. Here’s why.
After a few quiet days over Easter, the UK market has a bunch of interesting larger cap updates this morning. I was positive on Tesco (TSCO) shares when they fell below a 200p level during the market excitement of early October. And, despite a share price rising over 20% over the following few months, earlier this year I concluded that they remained at least a strong hold for mainstream investors. However, as I write, the shares are back above a 270p price, which raises the question whether Tesco shares are still a strong hold or not?
I think Tesco (TSCO) deserves to be the biggest supermarket in the UK. And despite just a bit of volatility in the company over the last couple of decades, it has ultimately boxed clever. The combination of the turnaround by its previous CEO “Tesco Dave” and the return of capital via the sale of its Asian business at a decent price, helped me make some good money on the shares. However...
Tesco (TSCO) states that it is “really pleased” with its recent trading performance and that it goes into the new calendar year with good momentum. So what of a current share price up to just above 246p?
A couple of months or so ago, I observed that “Tesco (TSCO) is a solid place to do your food shopping – and the same is now true of shares in the company”. The stock was about two quid a share then and it is over 10% above that level, which is alright (and we have not even noted again the 5% dividend yield). Whilst Tesco remains a very solid portfolio holding - and very boring pension fund investors, so much better than holding a government bond - I was intrigued to hear the company’s CEO observe on a BBC report that “households are switching from buying fresh food to cheaper frozen goods as the cost-of-living bites into budgets”...
Shares in Tesco (TSCO) were above 270p as recently as August but have fallen back significantly as it faces clear macro challenges. However, it has a long track-record across economic conditions and we consider the share price fall has been too extreme.
Back in June I observed about shares in Tesco (TSCO) that “I think there are better buys in the market today, but if you already hold Tesco shares, chill out and enjoy the weekend”. The share price back then was around 250p and today it is kicking around 205p. So, are shares in Britain’s largest supermarket now cheap or not?
About three months ago, I noted that, before I bought back into the shares, I needed to see a >10% fall in the then c. 265p Tesco (TSCO) share price. We are not there yet, given this morning's 248p price, but what did its Q1 update say about the tricky path ahead?
Hello Share Toters. This old punter is downsizing. That means selling stuff on eBay. That was very profitable in the lockdowns as ordering by mail boomed. Now far fewer folks are buying my tasty gear. Latest figures on online buying bear me out. According to the Office of National Statistics, retail sales fell by an unexpected 1.4% in March. And February's sales figures were also revised down. Most of this decline being due to online selling.
It might be a couple of days before Good Friday but there is a lot going on in global markets. After all yesterday American consumer price index numbers were at a 41 year high, whilst today’s equivalent numbers in the UK were ‘only’ at a 30 year high. Of course, this is a big worry for many people but - as anyone who has been working for 20 plus years knows very well - you should never ignore the threat of inflation (unless you anticipate negligible economic growth for the rest of the 2020s). And all this chat brings me onto numbers from Tesco (TSCO) this morning which have helped push its shares down 5%…
