| TESCO |
| buy! |
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25% |
[ 1 ] |
| dont buy! |
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25% |
[ 1 ] |
| not sure, watch |
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50% |
[ 2 ] |
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| Total Votes : 4 |
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| nelaina |
 Posted: Thu Feb 16, 2006 5:29 pm Post subject: TSCDY - Tesco |
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CFO
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ok, i need some help with research here.
Tesco is a HUGE retailer in the UK TESCO
corporate info
Apparently there is an ADR available on OTC under ticker symbol TSCDY, there isn't much info about this stock on Yahoo, but I checked with Deutsche Bank, and they offer the ADR information, so here is a link to the company financials http://www.adr.db.com/Shared/Companyprofitlosscentral.asp, there are tabs to view other company financials, then at the top you can scroll over where it says "company public view" and view other information.
After reading thru a bit i discovered that Tesco offers 3 of its shares for every 1 ADR purchased. So the US price is say 17.15 per share or ADR, but you are actually getting 3 UK Tesco shares. I'm sort of confused about this.
My reasons for wanting to purchase this stock:
Tesco is huge. If you look at the homepage you will get an idea of this right away. Also, I have a few friends in the UK and Tesco offers everything. Not to be compared to Wal-mart, however...tesco is different for many reasons. Mainly because unlike Wal-mart type stores that are standardized across the board, TESCO is localized, appealing to the demographics of a certain area. So, Tesco in Boulder, CO would be much different than Tesco in say Phila metro area.
i stumbled on this article, which got me interested
Tesco's small U.S. stores could be big trouble for grocers
I truly believe that Tesco will grow immensly if they were to enter the US. Browse around their website, you'll see.
I would appreciate any opinions on this stock  |
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| DKnightSr |
| Posted: Sat Feb 18, 2006 5:40 am Post subject: |
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Member of the Month
May
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I can't address Tesco directly, as most webpage info is slanted... one way or the other. However, I've followed American grocery chains for many years now, after working for Albertson's for a bit.
The grocery industry, under all those pretty banners and "SAVE" signs is a dog eat dog world. The companies generally feel they're doing well with a 1 percent net profit. Now 1 percent ain't much unless you consider a good size store can do 20 million a year easy.
BUT! The largest single controlable cost is the labor. (Hence lines at grocery stores). If your volume drops (weather, competition, construction, ???) your labor eats you alive in just weeks. Every time you walk up to the checkout line and there is an "open checker" the CO is losing money.
Good grocery chains can be a fairly safe place to hide in bad markets. They usually pay reasonable dividends. but their annual stock growth is everything but exciting. My personal favorite is Albertson's (I worked there, I know the mindset) though since Joe Albertson died, it's gotten a little wacky. I haven't owned them now in a couple of years. I'm still following the stock, but my money is in my billfold on that one.
Since Albertson's and Safeway are working the same format, (gas, convenience store, near the main store)..... I'm sticking to what I know. I wish you the best however and if you do buy TESCO, more power to you. Competition is what keeps our economy in shape!
Albertson's (back in the 70's and 80's) was a skyrocket stock! This just might be yours. |
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| nelaina |
| Posted: Sat Feb 18, 2006 6:52 am Post subject: |
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CFO
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| thanks for your opinion, that is good insight |
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| vetelmo |
| Posted: Sat Feb 18, 2006 7:57 am Post subject: |
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Moderator
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| Im not too sure about it, I would watch them more but my hesitation is only from not knowing more about them. |
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| Dave Rathbun |
| Posted: Sun Feb 19, 2006 8:06 am Post subject: |
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CFO
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I worked for Winn-Dixie, bought their stock, and recently watched the company go into bankruptcy.  Their excuse is that Walmart is killing them. The problem with that is, in my opinion good management should be able to overcome that. Walmart can't be the excuse for everything evil under the sun.  |
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| frusnak |
| Posted: Sun Feb 19, 2006 8:34 am Post subject: |
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CFO
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Walmart is a great scape goat for mis-management. Tesco seem to have a very good plan of attack on the convience store. It would be a welcome relief from your typical gas/convient store with it's junk food offerings and little crappy toys and such.
This stock is worth further review...IMHO |
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| nelaina |
| Posted: Sun Feb 19, 2006 3:30 pm Post subject: |
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CFO
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| frusnak wrote: | Walmart is a great scape goat for mis-management. Tesco seem to have a very good plan of attack on the convience store. It would be a welcome relief from your typical gas/convient store with it's junk food offerings and little crappy toys and such.
This stock is worth further review...IMHO |
exactly why i do like it so much. its somethng fresh for america IMO, and something we can embrace, and I believe a challenge to Walmart as well. And if they are only planning on entering the west coast and possibly Northeast, and that IMO is a great way to enter this country...if the stores are picked up by California and NY area, its pretty likely that eventually the stores will do well in other parts of the country. Also, I think of all of the British and other Europeans that actually live in these areas now, and I wonder if they would welcome Tesco.
thanks for the input! |
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