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Re: Tosco Shares - Buy or Sell?

Started by Fair play, 18-10-19, 03:48PM

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Fair play

Quote from: Ravvers
Saye option price is £2.19 - just wish I could do another one but Tesco made me redundant on the 28th :(

Me too I got kicked out in May but was so worth it 🤗

Scruff

Any idea what's happening with the dividend shareholders were supposed to be receiving due to them selling the asian business off?

it was reportedly 50p a share but the sale hasn't gone through yet and the 2nd dividend of the year is next month i think?

Fair play

I rang the helpline today . Will be paid 51p a share 22 November

notsofunny


Thats news to me , have the regulators given the go ahead in Thailand ? and if they told you that then why did they not say so when they announced the results ?

Rad

 

Rad

The 51p one may be additional after the sale goes through I guess.
 

grim up north

What would stop us all buying loads of shares on the 21st and selling them after the divi if it's all true? Is there some criteria to be met?

notsofunny


A cut off date is always in place and it has passed both for the normal divi and the special one, when and if it comes , You will normally find that the share price will drop a bit day after the cut off day ,

grim up north


Rad

#9
After the special dividend is getting paid (the asia sale) , the shares will be diluted or consolidated to fund the pension gap, so it looks like the shares are a very, very long term investment.
 

Rad

shares will be consolidated, not diluted. If you had 1000 shares , after the sale you'll have 750 for example.
 

BlueToon

I don't understand that Rad.
Are you saying (to use your example) that my 1000 shares (@ £2-15) then become 750 shares (@£2-15) ???

lordadmiral

#12
No, the price will rise respectively.  So if you had 1k shares worth £2,150.00 then you will have now 750 shares worth £2,150.00

Rad

Shareview helpline said i'd need to speak to a financial adviser if I wanted to know what is likely to happen to the share price.  Around 20 years ago Tesco did something similar and increased the number of shares and the share price dropped accordingly.  Tesco will write to the shareholders ahead of the sale going through.

 

barafear

where are people getting the info about the share consolidation?

notsofunny

#15
Quote from: Rad on 20-10-20, 10:33AM
After the special dividend is getting paid (the asia sale) , the shares will be diluted or consolidated to fund the pension gap, so it looks like the shares are a very, very long term investment.

How did you work that out ? and which place did you read that from ? Since I have heard nothing to that effect ,
The money they get from the sale will be used to pay a special 51p divi  , and the rest will be used to fund the Pension gap this has already been said before , with no talk about Share Consolidation or split ,

Consolidation is when they buy up shares to reduce the number of shares issued , which means the single share value goes up ,since the total shares on the market will go down

share split would be when they make  1 share into 2  which means the single share value goes down , but the 2 shares together should still keep the same value

But in both cases the total share value should not fall ,

Normally Splits are done when the value of shares become so high that buying and selling them becomes to expensive

In both cases it does not mean that the value of your shares will go up or down ,

I just think making comments like you have with out any explanation or understanding is out of order ,


alf

#16
The links being funny, but if you google "tesco share consolidation" it should be the first result.

A paragraph from that link.

Quote. Return of proceeds to Shareholders


It is currently expected that the return of proceeds to Shareholders of c.£5.0 billion will be
implemented by way of special dividend. In order to maintain the comparability of the Tesco
Group’s share price and per-share metrics before and after the return of proceeds, the
Company also intends to undertake a share consolidation in conjunction with the return of
proceeds. It is expected that full details of the return of proceeds and share consolidation will
be made available to Shareholders shortly after Completion, at which time a separate general
meeting will be convened to seek Shareholder approval for the return of proceeds and
associated share consolidation.

Though in regards to the pension, a couple billion from the sale is earmarked for that, this share consolidation matter seems separate from that, as it involves the rest of the money from the sale.

Rad

Quote from: notsofunny on 22-10-20, 10:21PM
Quote from: Rad on 20-10-20, 10:33AM
After the special dividend is getting paid (the asia sale) , the shares will be diluted or consolidated to fund the pension gap, so it looks like the shares are a very, very long term investment.

How did you work that out ? and which place did you read that from ? Since I have heard nothing to that effect ,
The money they get from the sale will be used to pay a special 51p divi  , and the rest will be used to fund the Pension gap this has already been said before , with no talk about Share Consolidation or split ,

Consolidation is when they buy up shares to reduce the number of shares issued , which means the single share value goes up ,since the total shares on the market will go down

share split would be when they make  1 share into 2  which means the single share value goes down , but the 2 shares together should still keep the same value

But in both cases the total share value should not fall ,

Normally Splits are done when the value of shares become so high that buying and selling them becomes to expensive

In both cases it does not mean that the value of your shares will go up or down ,

I just think making comments like you have with out any explanation or understanding is out of order ,



I as much as anyone want the share price to be as high as possible.  There is information circulating online from Tesco explaining what the plan is and from retail financial advisers.  Sell the Asia business, pay a special dividend, fund the pension gap, consolidate the shares.

I've also seen retail analysts say that buying Tesco shares to hold onto for dividends rather than a sale from buying and selling is a good strategy.


It is my assumption that we'll get a good dividend but may need to wait a while for the share price to rise to a level where we'd want to sell given the effect of the global pandemic and brexit on the stock market.

That's why I said "it looks like"

I guess the truth will bear out.

Apologies if anyone feels misled. 



 

notsofunny

So it's all Google talk ...

Rad

#19
Its on our own website. Search circular dated april 2020 tesco plc

So if you use google to search, yeah its google talk. 
 

notsofunny


Can you point me to the place it says ,,

After the special dividend is getting paid (the asia sale) , the shares will be diluted or consolidated to fund the pension gap, so it looks like the shares are a very, very long term investment.


Rad

#21
Page 14 pension payment, page 26 onwards the risks to the business, page 8 consolidation as soon as possible after the completion of the sale.  If you don't think the dividend payment, the payment to the pension fund and the share consolidation are not linked then that's your opinion.  As they are all mentioned within the same circular I believe they are all linked.  I don't believe any of these events take place without the other.

I don't have the energy for any more posts on the subject.

Take it easy.


 

notsofunny


Thanks  Rad  all I was looking for was a place it says ,

the shares will be diluted or consolidated to fund the pension gap,

But still cant see that ,

Never mind

Take care

grim up north

Quote from: Fair play on 07-10-20, 07:12PM
I rang the helpline today . Will be paid 51p a share 22 November

I thought this was bs when it was posted. What financial institution works on Sunday?

gomezz

All of them these days in this online connected world.
"The progress of the kart is more important than its direction"

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