Stock Market Does NOT Trust Tesco's Results Recovery StoryStock-Markets / Stock Market 2017 Apr 15, 2017 - 05:44 PM GMT
The mainstream media has been busy painting a rosy picture of how Tesco, Britain's supermarket giant is bouncing back in its latest results, with sales up for the first time in 7 years and the SFO false accounting scandal behind it.
Tesco reports first sales growth in 7 years - FT 12th April
However there is one major fly in the ointment and that is that the stock market does not trust Tesco's results, for one would imagine if Tesco was actually bouncing back then the stock price should be rising instead the Stock market has so far given the Tesco results a big thumbs down, by the stock price falling from £1.95 to £1.81 in just 2 days of trading following release of the results. That’s a near 8% drop in 2 trading days!
It appears for whatever reason the financial press has chosen to focus only on all that is good in the Tesco results (advertising revenues hint, hint) and completely ignored the big elephant in the room, Tesco's £17.5 billion debt black hole which is set against a stock market valuation of £14.8 billion!
In fact the only way Tesco is managing to improve its balance sheet is by SHRINKING, cutting stores and cutting staff. I will cover Tesco's 'REAL' financial position in a forthcoming video analysis so ensure you are subscribed to our youtube channel for that.
In the meantime see the following 4 videos in the 'Tesco Crisis' series as the stock price continues to gravitate towards ZERO.
Customer Experience Nightmare:
Stock Price 60% Collapse:
Fraud Fine and Investor Compensation:
By Nadeem Walayat
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Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
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