hodgy0_2

Sure, but are you saying that the directors remuneration has no link to the share price

That seems odd

Do you mean "staff" bonuses

hodgy0_2

Well for a start it defines the value and capitalisation of the company

So if it has taken out loans based on a valuation and certain level of capitalisation etc then it may have to repay them it that falls

It can borrow at better rates etc

And that's just for starters

I don't think any PLC is obliged to pay out any dividends btw

But I freely admit I am not an expert

jonc

Tesco is losing the war between the 4 big main rivals and its share price has been in a steady decline along with its market share for the past year. It's all about perception and maintaining the perception of success and managing market expectation to keep/attract investors and maintain market capital and ratings. Tesco aren't about to go down the pan, remember the Group still posted an annual pre-tax profit of £3.3bn for 2013.

hodgy0_2

Was has that link got to do with anything

And yes I would imagine Tesco do have loans, - does tesco have a credit rating, I would imagine it does

And lastly, if a company does not pay a dividend, then your only hope is capital growth

hodgy0_2

But tesco as an entity is a public company

By buying shares, you own part of Tesco's

So the value it has to Tesco's - is the value it has to you

hodgy0_2

And banks borrow money, and their market capitalisation will have an effect on that

jonc

From Tesco's point of view it's about market capitalisation, the measure of value of the company. Investors use this figure to determine the company's worth. Capitalisation through shares provides liquidity for the company, for it to invest in itself, to fund expansion etc. The unintended drop in share price has reduced its capital and thus its ability to invest, but I'm guessing they have enough cash in its bank account to carry on trading and to see through this dip in capital.

hodgy0_2

When you say "they", who do you mean the executives the run Tesco's

Yes maybe they don't care, after all they only run Tesco's on behalf of the shareholders

As I said the the Labour Party post - it's not their money

markjmd

iTrader: (11)

I'll ask the question again. If it's only a profit forecast that was misreported, whether by Tesco staff or by their auditors, and there's no proof that whoever did so stood to or has actually made any financial gain from that misreporting, has any law been broken here? Or is the whole fuss just about the perception of impropriety?

hodgy0_2

Yes, maybe simply an example of poor governance, lack of financial controls and a general lack of focus on the core business

And might explain why Tesco has been steadily loosing market share and the share price losing value

Being "a bit ****" is not a crime after all


(My wife uses Tesco home delivery all the time)

daveyj

iTrader: (1)

Price Waterhouse Crooks.

I remember an article about two of their accountants, on secondment to HMRC, sanctioning payments for these super hospitals before going back to normal jobs. The then Secretary of Health came under huge scrutiny for it and the story went dead! Was in The Telegraph I think. Good two plus years ago.

hodgy0_2

lol it is much worse than that

The "Big four" second Accountants to help the HMRC write the Tax Law

these same Accounting firms then, with inside knowledge, devise and sell the loopholes to anyone who can afford it to avoid billons in Tax

you really could not make it up

daveyj

iTrader: (1)

That's terrible. Still, if I was wealthy enough to worry, I think I'd like some of that knowledge......truth be known. But I'm not, so it's terrible. At least I'm not sitting on splinters on this one.

hodgy0_2

yes, and totally understandable, truth be told most people would do the same


i suppose that's how they get away with it!!!

EOEUMC

iTrader: (5)

And it seems that because of the ***** up on the profit thingy that a new superstore there building in Chatteris, Cambridgeshire has been put on hold after spending £22 million on it lol

Cpt Jack Sparrow

iTrader: (14)

Actually that not the reason, I have been working close to that project.

And £22 million has not been spent, that would be totals cost at completion, there's just a bit of landscaping been done so far

EOEUMC

iTrader: (5)

A bit of landscaping! Your having a laugh pmsl

http://www.cambstimes.co.uk/news/exc...jobs_1_3778121

tony de wonderful

It's about more than Shareholder being 250 million less rich then they thought they would be, but about the reputational damage of being caught 'cooking the books'.

tony de wonderful

Massive pressure at all levels on price and profit is my guess. Staff in fear of not delivering.

Cpt Jack Sparrow

iTrader: (14)

No, not really.

I have worked for the company for 25 years, since leaving the Forces.

So I get really frustrated with the slagging off and the hatred for the company, when I work bloody hard for my wages.

I find it amazing people genuinely want the company to colapse with the loss of 500,000 jobs globally and 320,000 in the UK.

Seems alot of people want to tar everyone with the same brush, when its just a few that cause the problem.

Its very embarrasing telling people who you work for at the moment when I should really be proud of it.

Tha last person told responded with " so you are a fraudster and a crook".... nice!!

That is why I dont like to comment!

however seems ike I just have

hodgy0_2

yes I see, all the downside of saying your a banker without the wage packet

ps - I think Tesco's is no better or worse than its competition (and better than Morrison's - it may be cheap but have you seen the pond life shuffling around the isles)

legb4rsk

I quite like it!!!
I treat shopping in supermarkets like a game or battle of wits if you will.
Just like to see how much I have saved at the end of a shop.

Too be fair it is wrong what they do with their pricing structure.
Some of them are just laughable.They currently have a large display of Lindt chocolates by the ciggie counter with a sign saying :

'NOW ONLY £6'

No reference to what the original price was or what the saving is.

Ref Tescos.My sister deals with hundreds of different companies for her job & consistantly states that Tesco sre the most difficult & unpleasant to deal with.

tony de wonderful

Interesting question which comes down to a theory of the firm I think?

What is a company, who does it belong to, who runs it, etc.

alcazar

iTrader: (2)

Of the four large supermarkets I have had to deal with, Tesco's customer care is second to all of them.

hux309

After seeing the bullish tactics they use to threaten suppliers who won't tow the line, i for one won't miss them when they're gone.

People tend to remember things like that.

Cpt Jack Sparrow

iTrader: (14)

Do you really think they will go....... Seriously??

hux309

Truthfully no, but downsize they will if things continue.

Cpt Jack Sparrow

iTrader: (14)

That's already happening

stedee

iTrader: (4)

Tbh I think ppl jump on the bandwagon because its the largest supermarket like the banks etc slagging them off but they have a 30% share so someone must like them.
I use them, nearest to me, always found the staff helpful and polite, some of the deals are dodgy I have to admit so you have to be on your guard.

jods

The word around here is that the situation at Tescos is so deficient that it would actually be generous to call it fraudulent as that would imply some level of street smarts. Arrogant / aggressive. Who knows, but there are a LOT of people watching with interest.