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Moneyweek Says To Get Out Of Tesco


scrappycocco

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HOLA441
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HOLA444

I don't like TESCO at the mo. Their big land bank may face a right down. the UK is the core and they're making less money - there's more competition from other supermarkets.

high pe of 21-ish and divi ripe for cutting.

Could go sub 300 easily.

In my opinion you'd be better off with unilever or something like that.

edit: for me the whole attraction of the stock market in the UK is that it allows you to invest in income from OVERSEAS via good quality UK companies. TESCO doesn't fit that bill.

Edited by bearwithasorehead
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HOLA4410

Does that figure include the dividends you received?

Yes, unfortunately it does. ;)

'Strategy' is too strong a word, but I have a kind of s-word that doesn't mind realising a loss.

I read once that it's not uncommon for people to keep their losing shares (in the hope they'll turn around, and so they don't have to admit to themselves that they picked a turkey), and sell their winning shares (feel good factor of making a profit). The net effect is a crappy portfolio.

At the same time as I sold my Tesco shares, I also sold my Thomas Cook shares (which I had considered to be something of a flutter rather than part of a longer-term portfolio at the time), making a 54% profit, so I don't feel too bad. :)

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HOLA4411

IMO Moneyweek were spot on.

First-half group trading profit fell 7.6 percent to 1.59 billion pounds in the six months to August 24 - in line with analysts' forecasts. That was hit by a particularly poor performance in Europe, where trading profit in the first half was down 68 percent.

Tesco is also the most affected by the growth of discounters Aldi and Lidl, according to JPMorgan Cazenove, until recently Tesco's house broker.

http://uk.finance.yahoo.com/news/tesco-posts-flat-quarterly-sales-061356539.html

I go a lot with personal experience, I kick myself for not buying Wetherspoons when they started and I and everybody else thought they were great. I did buy Fullers fortunately.

Tescos IMO has further to slide, people I know are abandoning it for Lidl / Aldi (cheaper and better quality) or Sainsbury / Asda (perceived posher) depending on the person. When I have shopped in Tesco I have been disappointed by the quality of their cheap stuff and the price of their brands. The decline is locked in and these perceptions move like oil tankers, I will buy their shares again but probably in five years' time.

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HOLA4412

Well I bought more on the recent dips and now it's back past 360p. Other than Vodafone, Tesco has to be the easiest share to trade. I shop there (the big one in Watford is vastly superior to anything else), buy stuff online from there, bought petrol from there when I had a car, have a savings account with them etc; it's a company that has its fingers in a lot of things. In contrast all my money week tips lost me money. I've used aldi/lidl and they don't seem to be as convenient or have the selection for my shopping. And Tesco honours price glitches. Got to admit I've not been so lucky with some of my other shares possibly due to the US situation - gsk, national grid, seven Trent, centrica - all down and these were supposed to be my stables.

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HOLA4413

Well I bought more on the recent dips and now it's back past 360p. Other than Vodafone, Tesco has to be the easiest share to trade. I shop there (the big one in Watford is vastly superior to anything else), buy stuff online from there, bought petrol from there when I had a car, have a savings account with them etc; it's a company that has its fingers in a lot of things. In contrast all my money week tips lost me money. I've used aldi/lidl and they don't seem to be as convenient or have the selection for my shopping. And Tesco honours price glitches. Got to admit I've not been so lucky with some of my other shares possibly due to the US situation - gsk, national grid, seven Trent, centrica - all down and these were supposed to be my stables.

scrappy

You're a bit exposed to the biggest of the big boys. Nothing wrong with keeping them, and TESCO, despite my opinion near the top of this thread. However, consider the FTSE 250 in the future as there is little major upside to your shares. I hold two of your shares but am looking for exit.

Quite a lot of risk in NG, Centrica and VOd, imo

How many of your closest acquaintances shop in the same way as you?

edit: and Tesco is cheaper than in 2006!

I was huge fan of Morissons, but none of my mates shop there - do you see what I'm driving at?

Edited by bearwithasorehead
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scrappy

You're a bit exposed to the biggest of the big boys. Nothing wrong with keeping them, and TESCO, despite my opinion near the top of this thread. However, consider the FTSE 250 in the future as there is little major upside to your shares. I hold two of your shares but am looking for exit.

Quite a lot of risk in NG, Centrica and VOd, imo

How many of your closest acquaintances shop in the same way as you?

edit: and Tesco is cheaper than in 2006!

I was huge fan of Morissons, but none of my mates shop there - do you see what I'm driving at?

I was looking for exist of some of them. The reason I've got some of the big boys for my isa is because of QE, just seemed like a safe way to go for someone that doesn't have a lot of time to watch markets. Tesco though, whilst QE is on going, I'll keep buying it on dips.

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I was looking for exist of some of them. The reason I've got some of the big boys for my isa is because of QE, just seemed like a safe way to go for someone that doesn't have a lot of time to watch markets. Tesco though, whilst QE is on going, I'll keep buying it on dips.

Good strat and I'm prepared to be wrong on Tesco! They've got critical mass few can match I am just still nervous about their competition and issues around their quality turning into loss of mkt share - even though they've got oodly of dosh, the 'sentiment' factor in mkt could work against their share price - just look at BP.

One thing: you've got too many utilities, I think: national grid, seven Trent, centrica

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HOLA4416

How many of your closest acquaintances shop in the same way as you?

This is speculative thinking, trying to predict what everybody else will do instead of analysing your own motives.

If you are trying to accumulate productive capital for your old age you should invest in things that will produce what you want to be able to buy in your old age.

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HOLA4417

This is speculative thinking, trying to predict what everybody else will do instead of analysing your own motives.

If you are trying to accumulate productive capital for your old age you should invest in things that will produce what you want to be able to buy in your old age.

I merely made the point that the OP was making a mistake in assuming that just because he likes the services of a company that it is a good company with good prospects.

Tesco now at pretty much mid-2012 levels. They are only 10% higher than the 2008 crash when they lost nearly 50% of their value over 12 months.

Edited by bearwithasorehead
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HOLA4418

Tesco is like the second biggest in the world though isn't it?

I filled my isa the other week with some more at 330p, now 360p; I bought on lower dips previously. Sainbury is close to 400p, makes tesco seem like a bargain to me.

Working out still?

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HOLA4419

Went to Tescos yesterday for a mobile phone charger - cheapest non-brand was about £11 and the branded ones were circa £23. I didn't fancy buying.

Got home and a mate had bought a rapid charging Samsung branded one in Poundland - £1.

WTF!

On this news I expect Tesco's SP to collapse in the morning :unsure:

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