Tesco PLC (ADR) (NASDAQOTH:TSCDY)

CAPS Rating: 5 out of 5

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Member Avatar MKArch (99.74) Submitted: 12/9/2014 1:06:45 PM : Outperform Start Price: $8.16 TSCDY Score: +0.36

Betting on a reversion to the mean getting them in the neighborhood of $1/ share in earnings and probably a double or more in the stock. If competition is just starting to eat into Tesco's market share, then my reversion could be in trouble along with this rec. It's worth a shot in CAPS. I might dip my toe in real life as well.

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Member Avatar AnsgarJohn (97.54) Submitted: 10/14/2014 9:06:46 AM : Outperform Start Price: $8.52 TSCDY Score: -13.11

Tesco PLC selling at book value. Down due to lower profits and bookkeeping scandal new CEO. End ASAP.

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Member Avatar Scrappyq99 (< 20) Submitted: 10/9/2014 1:58:42 PM : Outperform Start Price: $8.93 TSCDY Score: -14.91

This stock is poised for growth in the next few years. It has taken a beating but after the investigation and everything is cleared up, with the new board it should start bouncing back. The fundamentals are still sound and the write off has already been taken. If there is no more bad news in the report other than what has come out already they should be fine. They will take a hit when the report comes out but that will just be another time to buy.

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Member Avatar ElCid16 (96.80) Submitted: 10/8/2014 12:41:01 PM : Outperform Start Price: $12.30 TSCDY Score: -39.49

A lot of cracks in Tesco's moat have shown up in the past 2 years. Eroding market share, shrinking margins due to price cuts, profit warnings, a 75% dividend cut, executive firings over unethical practices...things appear to be at their bleakest right now.

Shares are down 50% YTD - $24B in company value has been wiped out by the markets. $16B in value has been erased in just the past 3 months.

The newly reduced margins are well-baked into the TTM earnings - and it shows. Operating margins have settled in slightly above 4%, down from the 6%+ margins of 2011 to 2012. While further price cuts could happen, a lot of the big price cuts to compete with ASDA, Sainsbury, and Lidl have already happened. Also, slightly lower profits could be realized, as the company needs to get it's accounting in order and learn how to properly (ethically) realize promotional profits and costs from suppliers. In other words, while much of the storm seems to have passed, there could still be some issues in the near term.

But, peak uncertainty paired with crashing stock prices can often lead to great investment opportunities. Howard Marks has often conveyed that during market crashes, rational investor behavior gives way to instinctual investing - people sell simply because they are scared. And in today's low interest rate environment, investors do not take kindly to dividend cuts. People could be dumping shares of Tesco for irrational reasons.

Tesco is trading at an incredibly cheap valuation right now, even when comparing other distressed retailers. Tesco is trading at about 6.7x TTM Pre-Tax earnings. Even valuing Tesco using 2013's historically low earnings, it's still trading at an incredibly cheap 7.7x pre-tax earnings. Target, which has seen its own troubles as of late, is trading at 16.5x TTM pre-tax earnings! Tesco's share price could double and still trade under 16x pre-tax earnings!

And for all you cash flow hounds, Tesco's Operating Cash Flows have checked in at $7B, 7B, 4B, and 5B over the past 4 years. That compares nicely to Target at $5B, 5B, 6B, and 4B - yet Target is trading at $39B versus Tesco at $24B.

By no means do I think Tesco is a perfect company - and I know that many people demand that a company be the best in breed before investing a single dollar. But for those that are willing to invest in a company that has seen a bit of trouble as of late, I think Tesco could represent a great risk/reward investment.

Disclosure - I own a small stake that I purchased at $9.80.

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Member Avatar elcid24 (77.54) Submitted: 9/22/2014 10:21:42 AM : Outperform Start Price: $10.03 TSCDY Score: -21.54

Pre-Tax income the past couple years has come in around $3.5B. Historically, pre-tax income was even higher ($4-6B), though I'm not sure things will ever get back to that level. Even so, the company is trading around 8x pre-tax earnings - on depressed earnings. 10x pre-tax earnings is a benchmark I commonly look for, so at a multiple of 8, I think a bit of safety is baked in to account for the uncertainty over the next 6-12 months. I don't particularly like stocks competing with online retailing, but I don't think traditional retailers are going away overnight, either.

I'll be keeping an eye on this one over the next couple of months. If the stock keeps falling, I might add a position in RL.

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Member Avatar freecapital (71.33) Submitted: 9/3/2014 3:21:47 AM : Outperform Start Price: $11.46 TSCDY Score: -30.85

http://boards.fool.com/fka-tesco-31394135.aspx?sort=whole#31394135

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Member Avatar MrMonopoly (30.29) Submitted: 7/19/2014 5:58:25 PM : Outperform Start Price: $14.83 TSCDY Score: -49.41

Monopoly. You've played the game.
All your wage are belong to rent.

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Member Avatar plungerboy (< 20) Submitted: 5/11/2014 12:09:38 PM : Outperform Start Price: $14.78 TSCDY Score: -53.86

Undervalued!

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Member Avatar lennysims (77.14) Submitted: 5/15/2013 11:25:22 PM : Outperform Start Price: $13.24 TSCDY Score: -94.41

5/15/2013

I would just look for an entry point, they might drop a bit more not sure. The way I am planning on playing this one is to buy on the next dip and turn on div reinvestment and let it ride. I have about 20-30 of these picks active on here right now and in the end it is just not likely that they will lose to the market. just depends on your time horizon if you want it slow and steady or if you want to look for other ways--maybe growth stocks. What so many people forget though is to use covered calls with these types of picks--strong div, covered call, plus cap gains=10-15% a year.

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Member Avatar WilliamCrook2003 (70.46) Submitted: 11/2/2012 10:42:43 AM : Outperform Start Price: $14.52 TSCDY Score: -88.22

Undervalued.

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Member Avatar Imhilion (< 20) Submitted: 7/16/2012 4:11:59 PM : Outperform Start Price: $13.62 TSCDY Score: -91.65

British Wal-Mart

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Member Avatar minnjim1 (88.70) Submitted: 6/13/2012 7:03:26 PM : Outperform Start Price: $13.07 TSCDY Score: -93.29

Nice review of Tesco by Matt Koppenheffer (6/13/12) noting that Buffet has increased his stake significantly. I take that as a bullish sign.

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Member Avatar tombacongolfer (< 20) Submitted: 3/15/2012 4:16:28 PM : Outperform Start Price: $13.77 TSCDY Score: -87.55

Solid growth outside the UK, huge overreaction over a slight drop in uk market share, expect a gradual correction over the coming years with a nice 4.5% divi along the way

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Member Avatar Germaine1 (73.20) Submitted: 3/15/2012 3:52:21 PM : Outperform Start Price: $13.66 TSCDY Score: -86.72

when the market ignores a stock is sometimes a good time not too

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Member Avatar XMFMadMardigan (31.69) Submitted: 3/7/2012 3:39:02 PM : Outperform Start Price: $13.25 TSCDY Score: -90.07

U.K. Big box giant with 30% market share has been yelled at by Wall Street for underperforming in their homeland. While their at-home operations can, and I think will, improve, their international operations are growing nicely and see no signs of slowing down.

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Member Avatar lollard (99.67) Submitted: 1/24/2012 9:28:09 AM : Outperform Start Price: $13.59 TSCDY Score: -99.04

Tesco is the 800-pound gorilla of British grocers: a roaring, chest-thumping giant in a green apron, aggressively discounting its way through the retail jungle. While its market share (30% !) and margins are likely to continue to erode at home, the reason to buy Tesco after its January fall is for its international prospects (the more than 4% dividend doesn't hurt either). Shares are priced for perpetual mediocrity. It's been interesting to see Warren Buffett, never a fan of diworsification for its own sake, choosing Tesco over Wal-Mart/Alda as a home for Berkshire capital.

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Member Avatar lukefrancis (< 20) Submitted: 1/23/2012 10:03:52 AM : Outperform Start Price: $13.38 TSCDY Score: -96.07

Warren Buys More
http://www.guardian.co.uk/business/2012/jan/19/warren-buffett-tesco-stake

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Member Avatar WCWlooky (22.53) Submitted: 12/28/2010 11:24:53 PM : Outperform Start Price: $17.27 TSCDY Score: -116.47

Long haul buy and hold staple

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Member Avatar aguadaboca (30.02) Submitted: 11/22/2010 3:47:29 PM : Outperform Start Price: $17.22 TSCDY Score: -126.71

The top retailer in Britain is doubling their stores in China and most likely to have winning bid on Carrefour's Southeast Asia supermarkets.,in an effort to keep up their growth. They are also an innovator in their multiline stores and more creative than Walmart in providing ancilliary services, such as financial and Video.Warren. Their corp bonds were amoung the best returns ths past year in the global bond market affirming this companies strength. even when they mis-step, they correct it quickly as evidenced in the closing of 8% of their 168 Fresh Direct stores in the US. Buffett (BRK.A)added to his stake in July and owns 3% of the company now.

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Member Avatar shinier (25.43) Submitted: 9/4/2009 2:51:13 PM : Underperform Start Price: $15.77 TSCDY Score: +151.68

Old hat

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