TSCO.L - Tesco Plc

[Hester]

http://www.bloomberg.com/news/2012-01-12/tesco-disappointed-with-u-k-sales-decline.html?cmpid=yhoo

Tesco fell as much as 16 percent, the most since at least 1988, after saying profit will be at the “low end of the current consensus range,” while next year will see “minimal” growth in earnings. U.K. sales at stores open at least a year fell 2.3 percent, excluding fuel and value-added tax, in the six weeks ended Jan. 7, worse than the median estimate of 10 analysts compiled by Bloomberg for a 1 percent decline

It's interesting because most large (in dollar terms) investors I respect own some, like Buffett.

[Gopinath]

Buffett mentioned that he will buy more if the price goes lower! Here we go!

[CanadianMunger]

At slightly over a 10% earnings yield I couldn't resist averaging down (ADR).

Lets hope if goes even lower!

[racemize]

At slightly over a 10% earnings yield I couldn't resist averaging down (ADR).

Lets hope if goes even lower!

Is there an ADR in the US markets?  I couldn't find anything other than the London ticker.

[alpha23]

Is there an ADR in the US markets?  I couldn't find anything other than the London ticker.

http://www.google.com/finance?q=PINK%3ATSCDY

[Gopinath]

Yes, it trades in pink sheets! symbol is TSCDY.

[oddballstocks]

Looks like it's slightly cheaper to buy in the US as well, 317 pence per share vs 319 pence in London..

I've seen this with a few other ADRs, I own Treasury Wine Estates TSRRY, it's trading at 3.61 vs the Australian version at 3.62, at parity the ADR should be 3.72. 

I will usually buy the cheaper version if I'm looking at something that trades as an ADR, sometimes the foreign ordinary share is cheaper, other times the ADR. 

[turar]

Relevant: http://brontecapital.blogspot.com/2012/01/tesco-request-for-comments.html

[Ballinvarosig Investors]

I just bought Tesco, but be careful on this one.

The main reason why Tesco struggled in this half is down to the new CEO. Basically, Tesco have a rewards system where you get 1p back for every £1 that you spend. When Britain went into recession last year, they doubled the rewards, giving customers 2p back for every £1 they spent. However, last year they went back to giving 1p back for every £1 spent, and then used the savings to market a new price drop campaign called "The Big Price Drop". This ended in a fiasco, as it turned out that Tesco merely increased prices in the week before, only to drop them back to the original price. The old CEO (Sir Terry Leahy) had been in charge since 1997 was an experienced (and visionary) retailer and would have known better to try and con customers like that.

[ShahKhezri]

Any thoughts on Tesco losing focus on their home turf while trying to aggressively expand globally?