Tesco's Results - Could do BetterTesco's share price has slumped in recent months - today it is holding its own on a mixed bag of results.
Tesco 2 month chart
Bear in mind that Warren Buffett bought a few million shares at around 320p a few months ago. I have been waiting for them to dip below 300p but I'm not sure if that will happen. But today's results were not stellar by a long chalk - here is the Motley Fool's summary - they also advised buying them when they were at 321p.
The price today has bounced around between 335p and 327p
1. Revenue rises Sales growth was strongest in the US (up 27%), at Tesco Bank (+14%) and in Asia (+11%).
2. UK sales stagnate After 20 years of powerful progress, Tesco has (temporarily?) stalled in the UK. 3. Margins mixed
4. UK store growth to slow
5. Profit creeps up
6. Earnings increase
7. Dividend raised
8. Cash flow up
9. Net debt steady
10.Pension deficit explodes by over 40% to £1.4 billion,
CEO Philip Clarke said
"Whilst our International business is delivering excellent growth... we fully recognise that we need to raise our game in the UK."Worth the risk On balance, the MF thinks that Tesco is still worth buying at 329p
Personally I'm still waiting for sub 300p :-)