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TheCountOfNowhere

Tesco Share Price, Hovering Just Above An All Time Low

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someone mentioned on the Foxton thread how spectacular the price graph looked.

it's nothing compared to tesco though.

the share price is not far off an all time low.

the all time high just happened to be November 2007.

this graph represents to me where house prices should now be!!!

tesCo bank are offering the best savings rates for bonds at the mo.

please tell me they're not allowed to use their own bank to finance their business?

this is one company to watch, IMHO

this is not advice.

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But but but pwoperdee assets...!

didn't commercial property values collapse the way we need house prices to?

what next for tesCo?

is it collapse or should we go all in on this shares?

you think they'd adopt the LidI modem before too long.

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But but but pwoperdee assets...!

I wonder how much it costs to clear a Tesco site for housing. I guess it's just a shed on concrete and reclaiming the car park too.

Watching the demolition of some houses recently you realise just how costly and long winded it is to reclaim a site. All the crap gets mixed up in the sub soil and sifting it clean takes ages.

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didn't commercial property values collapse the way we need house prices to?

what next for tesCo?

is it collapse or should we go all in on this shares?

you think they'd adopt the LidI modem before too long.

Commercial values did. The twin levers of banks withdrawing funding and an absence of state intervention allowed prices to fall quite sharply. This is how markets should work.

There was a spell between 2010 and 2013 when distressed commercial assets were being sold off at less than build cost. This has largely passed now and values are being held up by the decent yields. This is Tesco's problem. The value they place on their property assets in the accounts is based on the profits they make at those sites. Once it became apparent that these profits were largely illusory, those values become fantasy.

A good many of the biggest Extra stores have become a real burden. No-one else will want them and Tesco can't afford to keep them open. The locations are ideal for housing which may be how they achieve some value for these sites.

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didn't commercial property values collapse the way we need house prices to?

what next for tesCo?

is it collapse or should we go all in on this shares?

you think they'd adopt the LidI modem before too long.

Comm prop yields have plummeted as they did into 2007... (then they soared...)

Edited by Killer Bunny

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Just goes to show how precarious the UK economy is. Basically we have 80% of Market cap represented by the FTSE 100 currently 20% less in nominal terms than 16 years ago(well under half in real terms). Hardly a scenario which will encourage these corporates to invest, indeed the contraction re. selling off of sites for housing has already been mentioned. Tesco is doubly in trouble because it has debt, unlike most corporates that are hoarding cash because neither the share price nor the demand warrants any investment.

Fear not we can let these Corporates die and sell houses to each other from here on in when the inevitable job shed comes, including more houses on former Tesco sites. The UK economic plan in a nutshell.

Edited by crashmonitor

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someone mentioned on the Foxton thread how spectacular the price graph looked.

it's nothing compared to tesco though.

the share price is not far off an all time low.

the all time high just happened to be November 2007.

this graph represents to me where house prices should now be!!!

tesCo bank are offering the best savings rates for bonds at the mo.

please tell me they're not allowed to use their own bank to finance their business?

this is one company to watch, IMHO

this is not advice.

Looks like it is the same price as it was in 2003 and 1997 :o!

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Still there will be those laying the Christmas bets on shares- for a good or crap trading. I am on the fence tbh. I think amazon moving into uK food delivery 'pantry' is interesting. Living wage on horizon too.

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Not sure how much Tesco is still a land bank and property play.

Local area, another pound store opened up and what was a filling high street now seems to be one were the closures are happening again. Suspect the landlords got greedy again and expecting uplifts at every turn to match their "capital values". While new debt is flowing I suppose people can just keep borrowing to fund uncompetitive stores.

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I do seem to spend a lot when ever I go in there, unlike lidl. Still think they have some steam left in them.

I sometimes long for a tesco express when traveling and just want some fresh stuff, homousse and oak cakes.

A bit hard on the teeth..

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If you take a look at the sector, it is depressed. MRW, SBRY, TSCO:

1.png

If I had to pick one, it would be the strongest of the three, MRW.

The current falls of these shares in the run up to Christmas, suggests 2015 won't be a bumper one for them.

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Tesco declined to say how many 5p bags had been bought

With half an eye on retail, I see very few people paying for bags.

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It goes to show customers buying food do think 5p added to the cost of a product makes a big difference as to what they buy and where they shop......something Tesco and other supermarkets should be aware of. ;)

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Local area, another pound store opened up and what was a filling high street now seems to be one were the closures are happening again. Suspect the landlords got greedy again and expecting uplifts at every turn to match their "capital values". While new debt is flowing I suppose people can just keep borrowing to fund uncompetitive stores.

Is it true that the value of retail properties is derived from their rental values? So if the landlord chooses to lower his rents he is in effect devaluing his property portfolio?

This might explain the apparent irrationality of seeing so many retail units sit empty for months or even years on end.

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Bump. Interesting that the price is touching 52wk lows prior to Christmas. I still wonder if many are setting up their bets eg. For a poor or great ahead of expectations trading?

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Bump. Interesting that the price is touching 52wk lows prior to Christmas. I still wonder if many are setting up their bets eg. For a poor or great ahead of expectations trading?

I think it's Tesco's capital position that is the longer term concern.Pension liability and leases versus shrinking cash flow.

If you just watched Aldi car parks,you wouldn't be betting on a good Christmas for Tesco.However,I reserve the right to be completely wrong.

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Tesco garden centre chain Dobbies £48m in red

Dobbies increased sales by 8% to £153m, but slid to big loss after booking £54.4m in impairments on assets

Dobbies is the latest division of the Tesco empire to book losses. Last week the restaurant chain Giraffe, the coffee shop Harris + Hoole and the health supplement business NutriCentre all revealed they were in the red. Profits have halved at Tesco’s One Stop convenience chain and slid 9% at the Dunnhumby loyalty card business.

8th Dec 2015

http://www.theguardian.com/business/2015/dec/08/tesco-garden-centre-chain-dobbies-48m-in-re

Edited by 200p

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I supply Tesco with a 'hero' product (marketing bs for products growing faster than the rest of their category). We have decided to open negotiations on a new 3 year deal, although we still have 1 year to go on our current deal. Unsurprisingly, the Tesco buyer has a 'profit gap' he needs to fill this financial year. I look forward to seeing what mechanism they use to fill this gap as they 'no longer accept lump sums from suppliers'.

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