Tesco Shares

johnnyskeleton

Any ideas what's going on with these shares?

The Irish Times says that they are down from 385.50 to 4.14.

This suggests to me that one of the follow is true:
1) it's a misprint on the Irish Times' part (although it was the same in yesterdays)
2) Tesco issued lots of further share capital thus devaluing their shares
3) Tesco haven't actually floated yet so this is just a crazy market thing
4) There's some mistake or funny business going on
5) There's some technical reason that I don't understand to explain this
6) Tesco shares have been decimated and this has gone completely unnoticed.

Of these, one of the first 5 seems likely, but can anyone explain it to me? There is a little squiggle beside tesco, but of course there is no legend to explain what this means.

Thanks,
js

AlmightyCushion

Going by this (http://www.tescocorporate.com/page.aspx?pointerid=0FF45BDAF95D4D59B3AD08F92F7D8A39) it seems to be a misprint.

Time Magazine

http://uk.finance.yahoo.com/q/bc?s=TSCO.L&t=5y&l=on&z=m&q=l&c=

That move to Tara Street must have hurt them.

Kristopherus

Thats the FTSE price thats given. They were up around £4.17 back in Feb and have been above £4.00 for most of the time since. But in the past week they have been dropping. They closed at £3.43. Possibly worth a punt

damnyanks

Nope. Super markets will be badly hit during the bad times. People will look to cut back on food expenses (I.e no more 3 pounds innocent smoothie)

Victor

Johnny, you forgot the option of a share split, where one old share = say 3 new shares (or 100+ in this case).

damnyanks wrote: »

Nope. Super markets will be badly hit during the bad times. People will look to cut back on food expenses (I.e no more 3 pounds innocent smoothie)

I think you also need to consider, good times or bad, people need to buy food.

I understand, that Tesco make a lot of their money here from booze and luxury stuff. So, in harder times, instead of going out and spending €100 in the pub on a night out, people might spend €50 in Tesco and have a night in.

Time Magazine

Victor wrote: »

I understand, that Tesco make a lot of their money here from booze and luxury stuff. So, in harder times, instead of going out and spending €100 in the pub on a night out, people might spend €50 in Tesco and have a night in.

Precisely this has happened already. A colleague in work was telling me that Tesco Finest sales have soared in the last couple of months. And I even saw an M&S ad last night for "A night in for two" with their desserts etc. It's a real-world example of a Giffen good .

bosra

You would assume that Tesco would be worth a punt as everyone needs to eat... but across Europe I have read that consumers are seeking out lower cost stores like Aldi and Lidl. There has also been mention in the press of looming price wars as competition intensifies.. The other thing to keep in mind is that Tesco over recent years have pushed more into higher margin areas like selling TVs and clothing which are more prone to any kind of comsumer retrenchment given high oil prices, sticky interest rates and the housing down turn. Plus news from M + S of a 5% drop in like for like food sales has sent a few shivers across the sector

Victor

M&S operate on a very different model, often with High Street stores and with clothes being dominant. Tesco stock very little clothes.

I would advise strongly against purchasing tesco shares, they will fall a lot more. The main reason is global food prices, but add to that increasing shipping costs due to oil prices and their bottom line will be seriously effected worldwide

damnyanks

the outlook for tesco is in decline hence their price should drop. It doesnt matter if they start shifting their inventory. People need to eat but they will cut back on the sort of crap they dont need anymore.

Lean mince or mince for the family that just lot their main source of income ? It all adds up.