UK 04:46 Monday, 5 October 2026
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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.
Hello Share Shooters. When I said we might have another go at Tesco (TSCO) recently, there was a volley of opposition among the comments which followed. Hardly anybody agreed that it was worth giving the supermarket giant another chance.
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Comments
Af
You forget that Tesco are now facing a potentially very very very expensive Class Action from Shareholders who have lost money due to them making an odd, ahem, error in their accounts. Potential settlement bill? vast quite frankly!! tens, Hundreds, thousands of millions £££££££ ?????????
Surely this risk alone, especially given the stand up nature of the case, screams RISK……SELL??
alcira16247
Malcolm
Could be wise move to hold off from making any further purchases for a while.
The company has just published updated analyst forecasts on its corporate website. And they make for grim reading …
Apart from rapidly deteriorating earning per share forecasts, 2013 – 32.71 / 2014- 15.95 / 2015- 14.14. And some bear forecasts are much more pessimistic.
I also note, the latest forecast show a marked deterioration in dividend expectations. No analyst is now forecasting Tesco to maintain the final dividend at last year’s level, while the most pessimistic forecast is for no final dividend at all.
Seem’s like Tesco’s are going to have one hell of a battle on to turn things around.
Malcolm Stacey
Thanks, gang. I’m not sure the Tesco shareholder case will go ahead. If it does, I understand it only affects shareholders who bought shares after the accounts issue. There may not be many of them, as the company was already under price war pressure. The firm should have enough assets to stand it and the share price already reflects the problems the company faces. Even so, I certainly will not be buying any more shares and possibly will be jumping ship soonish. At the moment I wait to see if the share price moves either way.
alcira16247
Malcolm
No doubt you have read this morning’s RNS?
The market seems to have taken this news badly…… Tesco shares down over 16% as I write!
I conclude the statements about ‘ strengthening the balance sheet’, are particularly worrying and might indicate a heavily discounted placing or rights issue is on the way early in the New Year.
What are your views?