Why I'm Not Buying Tesco

Published in Investing on 17 January 2012

It's time for a rethink about the supermarket chain.

Well, can you believe it? After last week's Christmas trading statement, the share price of Britain's largest retailer Tesco (LSE: TSCO) has tanked, falling by some 20%.

The sure thing that wasn't

You can be certain of few things in life but, until last Thursday's statement, just about everyone -- including myself -- was confident that Tesco would continue to do well.

Indeed, just a few days before, I was thinking of buying some shares in the firm. Now I'm breathing a sigh of relief that I didn't go through with the purchase.

The investment thesis was that Tesco would staunchly defend its UK sales while continuing to grow abroad. We knew that the firm was unlikely to grow fast in its home market, but the market share would at least be maintained.

How wrong we were. Like-for-like sales in the UK for the six weeks to 7 January were down 2.3% on the previous year. Don't forget, a year ago sales had taken a knock because of the terrible weather, so these were pretty poor results.

In contrast, like-for-like sales in the competitor supermarkets Wm Morrison (LSE: MRW) and J Sainsbury (LSE: SBRY) rose.

The Big Price Flop

What went wrong? Well, the competition between the supermarkets has been as fierce as it has ever been.

Asda has been putting across the consistent message that it is the cheapest retailer out there. Sainsbury, traditionally the most expensive of the supermarkets, has used its Price Match campaign to match Tesco's discounts. And Morrison's also been spending heavily on advertising, with the emphasis on its strength in freshly prepared food.

In contrast, Tesco's Big Price Drop campaign has turned out to be a Big Price Flop. The reductions were in own-brand products, whereas the big draw for consumers is offers on branded products. It seems customers have pocketed the savings and not spent any more.

Tesco bulls would argue that overseas sales and profits continued to grow. But we now have a situation where the company's growth abroad is negated by contraction in the UK. And remember, three-quarters of the business' profits are still made in Britain.

What to do now

So what should the investor do now? Well, several will have jumped in on the day of the statement to scoop up more Tesco shares. But I wasn't tempted and, sure enough, the company's shares have continued to fall in the following days.

The thing is, the trading statement was also effectively a profits warning from chief executive Philip Clarke, who predicted that there would be minimal profit growth for 2012/13. That's why I don't think there will be a rapid rebound in the share price.

Instead, I feel the market will take a 'wait and see' approach to Tesco, and I think you should do the same. The question is: is this a mere blip in the ongoing expansion of the business, or is this the end of an era?

I remember the 80s and early 90s when Sainsbury, and not Tesco, was the king of the supermarkets. In 1993, Sainsbury's share price peaked at 577p. 19 years later, it stands at only 283p.

My personal view

Could Tesco go through the same long-term decline? Well, I personally think it is highly unlikely, but the honest answer is we don't know. Certainly, Philip Clarke -- in his first year as chief executive -- has a lot to prove.

The market will await the full-year results in the spring with interest. In the meantime, the share price may drift with little sense of direction. I am keeping the firm on my watchlist, and might still be interested if the share price fell further.

My personal view is that Tesco has grown too large in the UK, and it now faces a gradual erosion of its market share. But it will continue to expand overseas, and overseas growth is going to become more and more important for the business.

At 312p a share, the company is on a price-to-earnings ratio of less than 10, and a predicted dividend yield of 5%. Even if the prospects for growth are diminishing, Tesco could become a decent value and income play.

When talking to people about Tesco, I hear too many stories of overcrowded supermarkets, poor customer service and long queues. If the chief executive wants to reinvigorate the business, he has to start with the basics: good service, great deals, an excellent standard of produce and a shopping experience that the customer really enjoys.

Just as Tesco transformed itself in the early 90s, it must do so again. Philip Clarke has a difficult task on his hands. Let's hope he rises to the challenge.

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SevenPillars 17 Jan 2012 , 11:38am

This raises some interesting questions about the strategy of buy and hold, especially in relation to companies that are seen as good, solid, can't go wrong in the long term types. Well, history shows us that plenty of time it does go wrong, especially if you bought at a high price (not necessarily a demanding one, at over 400p Tesco's P/E was around 11, now below 9 at closer to 300p) and the share/sector has fallen out of favour with the market.

In the case of Tesco, the company is not on demanding fundamentals, its earnings and profits are still substantial, it is growing fast overseas, what's not to like? Well, market opinion seems to be against it and the sector it is in. That's basically it. The market judges Tesco on its UK performance and totally ignores what it is doing overseas, unless the news is bad. Until market opinion turns back to liking it, the share price is probably as dead as a dodo regardless of anything positive re fundamentals alone. Right or wrong, market opinion matters more.

For those who believe in long term buy and hold, it is scary that companies like Sainsbury, another solid performer is less than half the share price of almost two decades ago. Vodafone is less than half of its tech boom high. Great companies, rubbish share performance, at least rubbish for those that bought into buy and hold and bought anywhere near those highs. Just how do you judge value in these cases? Is Tesco now a sell after falling around 25% in the last month or so?

If all you are interested in is a rising dividend and can afford to sit back and not care too much about the capital in play, then yes these companies can give you what you want. However, if you feel that buy and hold also should mean capital appreciation over time, there are plenty of examples of companies that will give you a lot of hurt as the years go by. Tesco could be joining that club.

vinchainsaw 17 Jan 2012 , 12:33pm

Risk/reward pay-off. If you take a wait-and-see approach you will in all likelihood still be waiting and the share price will be over 400p.

To me this isnt terribly different from the BP scenario from a couple of years ago.

billyboy121 17 Jan 2012 , 12:34pm

Great article and also comment above. I personally see this SP response as mostly sentiment - Mr Market is very emotional at the moment and to see a FTSE stalwart like this letting him down is perhaps a bit more than he can bear. Agree that new management has to prove itself though, I've increased my holding but will be watching carefully.

GoldenSoldier 17 Jan 2012 , 12:40pm

The problem with Tesco is that the UK problems have been self inflicted. I believe that it is the long queues that have driven customers away. This has been caused by management cutting the number of check out staff. If Tesco has management that believes that the savings achieved by cutting such staff outweigh the loss of customers then what hope is there for the future?

ProfessorMarcus 17 Jan 2012 , 12:53pm

Over the long term it's easier to hedge your bets and buy a smaller stake in the 3 large listed UK supermarkets rather than heap everything on one.

Over 30 years the fortunes will fluctuate but you benefit from 3 different company attributes. If or when you top up your holding then go for the cheapest at that point in time.

Is this too simplistic?

FitLawton 17 Jan 2012 , 1:05pm

"Like-for-like sales in the UK for the six weeks to 7 January were down 2.3% on the previous year."
This is the kind of short term thinking investors should be avoiding.
Stocks will be always be offered at a discount for a reason.
There is a compelling case for buying TSCO at these levels on:


HighbrowNick 17 Jan 2012 , 1:28pm

I've personally learned an important lesson from Tesco- which is to trust my instincts. Before Christmas, I was thinking of selling my Tesco shares, after hearing people complain about the poor service in the UK and noticing how empty the supermarket that I visited in Budapest was.

I didn't sell because I heard that Warren Buffet likes the company.

While I agree with Fit Lawton that the trading statement is just a short term thinking, but does it reflect poor underlying performance. Perhaps the company has become complacent, perhaps the new CHief executive is simply not up to the standards of his predecessor. And the debacle about the UK chief executive selling his shares just before the announcement...

I would be selling now if the price was not so low. Certainly I will look to get out of the company if the price gets up to 350.

BerkoBob 17 Jan 2012 , 1:33pm

It seems to me that the author was considering/willing to pay £4 but is less willing to pay £3. That seems strange to me.

I could go on about all the great reasons to own Tesco but it's been capably done above. Suffice it to say that if it's good enough for Mr Buffet then it's good enough for me.

PS Interestingly, I'd never shop there but I'm willing to own their shares. I wonder what that says?

giveusaquid 17 Jan 2012 , 2:11pm

I can reduce my shopping budget by more than 2.3% just by being a bit more canny with my purchases or dropping some of the luxuries. I wonder how much of the Tesco losses can be attributed to belt tightening and how much is market share lost to the others? Either way 20% seems an excessive drop and I am tempted to go in but I bought too early on the BP disaster and still sit at a hefty loss so I'm happy to wait and see if it has further to fall.

LastChip 17 Jan 2012 , 2:35pm

Like you, giveusaquid with BP, in retrospect, I bought into Tesco (recently) too soon, ignoring in the process one of my fundamental rules - don't bet against the trend!

But it's no good crying over spilt milk. I strongly suspect, this is still a strong company that is making serious profits. Over time, the market will get over it and the price will rise. How long that will take, I've no idea, but in the meantime (assuming nothing serious goes wrong), I'll be content with collecting the dividends.

The market is (and always has been ) finicky. It will remain so.

Some bets you get right, others wrong.

One of the best pieces of advice I ever had many years ago, is don't bet more than you can afford to loose. That was valid then and is valid now.

chubbybrown 17 Jan 2012 , 2:36pm

Its just sentiment surely?
Its 2.3% not 23% and the drop of 20% isnt justified.
Another chance for MM's to make a shilling.
I hope the Pi's get in before it goes back up again.


thebacksaver 17 Jan 2012 , 2:36pm

It's funny, but I posed the question of whether to buy or not to Mr. Kuo yesterday and his response was along the lines of some of the comments above that it is probably just a blip and that the underlying business is still very sound. As has been said, if Warren Buffet is in there, and he is probably going to buy some more as is his method, it is probably good enough for me. There is every likelihood that Buffet will be asking questions of Clarke if he has not already done so, and maybe we will see more checkout staff in the near future if that is one of the reasons for the dip in performance, although I am not entirely convinced as there seems to be bottlenecks at all the major supermarkets, especially around Christmas. I'm buying.

oatey 17 Jan 2012 , 2:52pm

I think GoldenSoldier put it perfectly above about the cutting of staff in stores to save costs.

As an employee I've seen payroll budgets cut twice this financial year at the store I work in, with no consideration from above about how much payroll is needed to run the store well for customers.

If this has happened at every shop in the last year then I'm not surprised customers have fallen out of favour with Tesco.

Excel35 17 Jan 2012 , 3:11pm

If you like the investment style of Warren Buffet, isnt this one of those rare occassions when a quality company goes on sale.

I already held Tesco and have topped up since the falls.

The 3 supermarkets are historically low, I also hold SBRY. I watch MRW, but not seen at a price I like. Tesco looks a bargain to me at current prices and with a long term hold view.

Amazing how many negative views there are after a one quarter trading statement and everyone jumping on the bandwagon to slate the company now.

GoldenSoldier 17 Jan 2012 , 3:13pm

the backsaver

When I Switched from Tesco, I did not find long queues elsewhere. If it were really true that it was just as bad in the other supermarkets, then why didn’t Tesco open up the other 50% of check outs to grab customers from them. It is easy to lose customers, but much more difficult to regain them.

fedupwithbanks 17 Jan 2012 , 3:18pm

If cutting the check out staff was Clarkes decision, that does not auger well for the future. I have shares and shop there and it's true about longer queues. Having said that, there are still long queues!

I've bought more and hope that I see Buffet buying more too?

I was a little concerned when Leahy left though.

NiallFirinne 17 Jan 2012 , 3:26pm

Tesco, despite being immense has until recently been very nimble and relatively transparent to the alert customer. Never the sexiest of places, they combined value, choice and price to make an unbeatable combinaton. As a customer, to me they started to lose it when they started down to the 3 for 2 route. 3 for £10 and other stealth pricing strategies. The 3 for £10 has been a way to maintain prices while improving margins by reducing size of each item. They have been particularly stealthy with wine. Through stealthy use of price increases, then 3 for 2 offerings, then price back to above the pre offering price and then repeating the process with 3 for 2 or half price offerings they have effectively migrated average wine prices well above any justifiable level. The average consumer who doesn't think, and there are less and less of them might be tempted to think they are getting a bargain. Hardly! The bottle of wine they paid £4 or less a year or so ago now pays £5 or higher. Sainsbury and Waitrose are looking more than better and better every day. Bottom line, by getting away from basics and trying to be too clever they have surrendered the strategy and lost credibility with the consumers who continue to go to Tesco for things like loo rolls or cling film but migrate to Sainsbury, Morrisons, Waitrose and M&S for the quality (higher margin) products where they will not pay much more than they would have paid at Tesco.

BrnzDrgn 17 Jan 2012 , 3:29pm

The local store is always busy, if they want to cut back then they should stop doing the 24 hour opening and just open from 6 am until 11 pm or some such sensible hours. The main issue is that they are a large lumbering organisation at the mercy of rising costs.

progressivefool 17 Jan 2012 , 3:45pm

Does any of this logic for a buy hold true for you?

With a P/E ratio of 9 a share bought today will 'earn' itself back over 9 years and with a yield of 5% pay itself back in dividends in 20.

I'm pretty certain that a profitable Tesco will be around for those 20 years and beyond - how many other companies in the FTSE could I have that sort of conviction with?

Chongq 17 Jan 2012 , 3:51pm

Fact is Tesco customers on average earn less than Sainsbury's and are more exposed to the recession. Tesco will hold their own in 2012 but roar back as economy picks up. With Thailand, Korea and China as core markets UK issues are nullified. I topped up.

Benatar 17 Jan 2012 , 3:58pm

Since the Trading statement I have read so much rubbish from people in the media, completely distorting facts.

One said it was Tesco's worst Christmas Trading period for 20 years. It was their best - in terms of total sales & total profit (how else should you measure it?)

One said UK sales were falling - they rose 3.8%.

They all seem to say it was a profit warning, yet what was actually said was that profits will be in line with expectations - just at the lower end of expectations.

The author here says he expected market share to be maintained, yet later on he says, "My personal view is that Tesco has grown too large in the UK, and it now faces a gradual erosion of its market share." He can't have it both ways.

Competitors took market share from Tescos in the UK food arena, but did so by some pretty aggressive means - Morrisons & Sainsburys (& Asda & Co-Op & Aldi & Lidl) may take market share but they are having to buy it with reduced margins.

I agree with the author's view that they are so large in the traditional UK supermarket sector that there will likely be some erosion of that position. Management at Tescos have obviously been aware of this and so years ago began the long term strategy of diversifying into other countries & non food sectors. They recognised this day (when they could no longer grow UK like for likes) would come years ago & have been taking the necessary steps. Instead of treating them like Woolworths we should be giving them credit for their long term strategies.

This year may be tricky, but no one is doubting that total turnover will again grow, profits, at the very worst, are likely to be flat; and the well covered divdend will almost certainly rise yet again.

thebacksaver 17 Jan 2012 , 4:36pm


I agree it is easier to lose custom than to regain it, but as is pointed out by Benatar above, it is not really a loss overall and we must not lose sight of the fact that they do have a 30% market share.
As for queues, I shop here in Guernsey at Waitrose - our only major supermarket - but when in Dorset/Somerset I use Sainsbury/Morrison/Asda near my base there as well as Tesco and believe me, the checkout congestion is the same as at the local Tesco. Also, it is not a one minute process to recruit and train new staff if they have realised they made a mistake by cutting.
I still have faith that they can turn it around or at least hold their own and with their Asian expansion, I'm bullish and have taken advantage of the share price fall. Maybe I have acted too swiftlyand there's more pain to come before the climb back. I feel I can handle that.

GoldenSoldier 17 Jan 2012 , 5:34pm


I am overweight in Tesco and I am suffering not only from the recent drop but the decline from the previous high of just under £4.80 in about December 2007. Yes, I accept that you can’t recruit overnight, and I agree that in principle they can turn it around, but the fact that they made these obvious mistakes does not inspire me with confidence in them.

goodlifer 17 Jan 2012 , 11:08pm

"T remember the 80s and early 90s when Sainsbury, and not Tesco, was the king of the supermarkets. In 1993, Sainsbury's share price peaked at 577p. 19 years later, it stands at only 283p"

Was Sainsbury's.ever really worth 577p?
Do you remember its earnings then, or its yield?

Could it be that today's price is more realistic?

OK, Tescos had a disappointing Christmas.
Mountain or molehill?
Does that mean they're really worth 20% less than a week or two ago?


"Sainsbury, another solid performer is less than half the share price of almost two decades ago. Vodafone is less than half of its tech boom

I wasn't in the Great Game in those cloudcuckoo, long-gono days, but wasn't that when economic hotshot Gordon Brown told us he'd abolished boom and bust.
It now looks as if the market - or anyway quite a chunk of it - believed him.

trevsconovich 18 Jan 2012 , 4:35am

Benatar - interesting alternative viewpoint. Reminds me of the heady days of a few years ago when a company reported an increase in profits of 20% but got marked down because 25% had been expected.
Regarding staffing levels, did anyone see the programme on Channel Four on Monday night with Richard Wilson bemoaning automated call centres, the rise of self service checkouts in supermarkets and even remote payment to park your car? They got thye usual corporate-speak from the big supermarkets to the effect that self service checkouts were introduced due to customer demand and increased the efficiency of the process. That was disproved when the programme makers sent out a team of shoppers to purchase the sameset of goods, some using manned checkouts and others using the automated ones. The automated ones took between twice and five times as long to complete the transaction. Personally, I can't stand the things & others I've spoken to about them feel the same.
A few months ago while in the queue at a Tesco checkout the woman in front of me complained to the assistant that the shelf was empty for something she had wanted to buy. The assistant replied that he was supposed to be stacking the shelves but had been put on the checkouts due to staff shortages....
Although these results are not the end of Tesco as we know it, I think ''the management' would do well to take stock as to why they have done relatively less well than some competitors. I used to do nearly all my grocery shopping at Tesco 20 years ago, now it is probably less than a quarter. Staff there generally seem less happy now and there are less of them - not difficult to see why when you read some of the comments posted by employees on various forums.
The range and quality of goods has also declined and, as previously noted, some of the slight of hand pricing gimmicks leave a nasty taste in the mouth.
It is relatively easy to make money in 'boom' times. Mr Leahy has been praised but during the period he was in charge the company has, for me as a customer, deteriorated. Too much effort seems to have gone into putting a Tesco on every street corner. The momentum of such a large organisation can sustain this to an extent during the good times but if the tills stop ringing sufficiently they will be left with a very large estate to service which will be a drain on dwindling resources. There have been many examples in the past of companies which have expanded too fast and then disintegrated when the bubble burst.

SevenPillars 18 Jan 2012 , 10:29am


I think the heady days of the Sainsbury share price was achieved under a Conservative Government, the idea of the end of boom and bust just being a glint in the eye of Gordon Brown back than.

The market obviously thought that Sainsbury was worth that price back than and that is the point that I was making in my original post, market opinion and sentiment rule the day until it changes. Tesco had a P/E in the early 20's a few years back, when it was seen as the growth story of the sector and the share price reflected that to some degree. Despite continuing to grow at a similar pace, the market deserted it as a growth story, in terms of the share price, a few years back. It's P/E is now around 9, despite continued impressive growth. Interesting that the city sold it off last week because of that 10%+ UK growth stalling slightly, yet it chooses to no longer see it as a growth stock if the share price is anything to go by.

All the numbers on Tesco suggest continued impressive upside on earnings and profits in the years ahead, but sentiment needs to change. That may only happen once the consumer economy in general picks up again, which could be a long wait. In the meantime, Tesco long term buy and holders should continue to get a good dividend.

goodlifer 18 Jan 2012 , 11:20am


"Tesco's a long term buy and holders should continue to get a good dividend."
I'll drink to that.

Prabhat says,"Sainsbury's share price peaked at 577p. 19 years later, it stands at only 283p"

Does anyone remember its earnings then, or its yield?

ScottishDavie 18 Jan 2012 , 12:05pm

I live in Perth which is reputed to be the most Tesco'd town in the UK. We have two huge supermarkets on the edge of town and a Metro in the centre. With the exception of one valiant delicatessen, a tiny greengrocer and a couple of excellent butchers we have virtually no indigenous food retailers left. I don't know whether it is rational or not but I have developed a real dislike of Tesco (a "scunner" as we say in Scotland) in the same way as I dislike any other monopoly which, deliberately or otherwise, drives local traders out of business, corners the market and then reduces service standards to the barely acceptable.

Many years ago I was taught that it is a good investing principle to sample the product before buying the shares - if it's a toy manufacturer see what your kids' friends are playing with, if it's a hotel chain spend a weekend in one of their establishments and so on. I stopped shopping at Tesco some time ago. I don't own the shares and have no intention of changing that position.

thebacksaver 18 Jan 2012 , 3:30pm


Until Friday I had no Tesco but have Sainsbury as this element of my holdings but with Buffet going in, and I am looking at dividends for long term (if I last long term!), I felt I had to and quite heavily. I have no doubt that if the Sage of Omaha has concerns over confidence in management, he will make those concerns known.

goodlifer 18 Jan 2012 , 5:32pm


Many thanks for explaining what " scunner" means.
I met that word the other day in "A Town Like Alice."
The heroine took a bit of one to Malaya just after the war, and who can blame her?

We hardly ever use Tescos, simply because Waitrose and Sainsburys are, for us, much more conveniently located.
My impression is that their staff are every bit as cheerful, friendly and helpful as are the staff of any of our smaller shops.

Monkeynugget 19 Jan 2012 , 4:21pm

Well i had been wanting to buy tesco for awhile just didn't want to pay more than £3.70 for them so when it dropped o bought a lot of Tesco the day after and I'm definitely not regretting it. + it wasn't all the smart fools buying up as it turns out Buffett seized the opportunity to buy up another £350 million worth of shares.

Just goes to show 'buy when others are selling and sell when others are buying' works

SevenPillars 19 Jan 2012 , 4:37pm

Reports today that Buffett has bought a further £350million worth of Tesco. Berkshire Hathaway now own 5.1%.

ScottishDavie 21 Jan 2012 , 11:50am


"Scunner" can also be used as a verb as in "Ah'm awfae scunnered wi a' this dreich weather"

Just thought you'r like to know

goodlifer 21 Jan 2012 , 6:54pm


Thanks again.
Hope your weather improves!

joshgroeny 23 Jan 2012 , 8:14am

"I remember the 80s and early 90s when Sainsbury, and not Tesco, was the king of the supermarkets. In 1993, Sainsbury's share price peaked at 577p. 19 years later, it stands at only 283p."

This is inaccurate! The author is right that In '93 it reached a high of 577, but that wasn't the peak! He neglects to inform us that in Oct '98 it almost made 577p again and in July 2007 it reached over 590p.

Based on the info above I wouldn't describe Sainsbury's share price performance as long term decline. It looks more cyclical to me.

fedupwithbanks 24 Jan 2012 , 7:13pm

Well I'm just happy that I got in just before WB came back for more.

I hope the management is suitably chased.

whyknockem 11 Feb 2012 , 6:43pm

everyone seems to blame Tesco poor discount ideas but it seems to me that the Clubcard scheme devaluation has hit so many people I know.
They were all saving for holidays and days out now they say it is pointless,no pun intended so they go elsewhere more in anger and disappointment over their clubcards than value of food etc.If you shop properl;y you can always find good deals even if you have to mix Tesco Waitrose Sainsbury Ocado Morrisons.I am not a Lidl fan too many products using similar spellings and packaging but not the real thing!

motivefinder 21 Feb 2012 , 12:09am

Please dont be hurt, either you are short sighted or shorted this share at the bottom end, so you arent buying???
Why I will be more than happy to get into this solid company--
1. it is well diversified.
2. It will be highly benifitted from emerging market exposure,In some of the emerging market-- it a status symbol for getting rich middle class to do daily shoping from a foreign supermarket.
3. Tesco will be also benifitted from US recovery-- thats a huge competetive advantage in comparison to other UK retailers.
4. Waitrose, M&S and Sainsbury-- not a supermarket for working middle class in UK, where price does matter. Yes Tesco wasnt providing half price sales that extent --before January 2012. Since 2nd week of January 2012-- their half sale items coming to small local tesco express shops. In these tough time every penny counts for working families like mine.
5. I believe it was a blessing that it came down to todays level so I can buy some shares for my pension which will generate me regular income through solid dividend and also from capital gain from todays price.
6. Its just formed the BULLISH trend today at about 14:00pm on 20-2-12, WHEN 50MA WENT UP CROSSING 200MA, 2OMA CROSSED 200 MA, JUST THIS MORNING.
7. Its just the beginning of bullish trend for tesco and over all market going to start mega bull run in about next 14 days.
8. Considering long term investment from Mr. W. Buffet (increasing his stake to double), investment from Oxford college, blackrock, legal and general--- I could be assured that I am putting my money for long term investment.
9. Big safety card with this share -- will be -- Mr. Buffet can further increase his stake at these lower level and surprise the market down the line that his stake could be even at 20% of Tesco.
10. I firmly believe-- another reason for me to buy-- Mr. Buffet , doesnt just only throw away his money without seeing the real opportunity.
12. Be very carefull in 2012 before shorting the market-- it will be bull year like 2009.

motivefinder 21 Feb 2012 , 12:37am

By the way, I think financial touting era is finished. None of us believe , what we hear from media, rating agencies full of double standards. Same S&P and others , rated Mortage base CDS as AAA, just after 3 months said these are junks.

Professor from london business school has written a report on Icaland, saying its the best possible investment under the sun just before went bust.
Same media, taking about DWP work experience programme, advertising it .
Same Goldman sachs ,while were selling motgage back securities to investors after getting it rated by rating agencies as AAA, at the same time were betting against it that , it will fail and used same rating agencies to rate it as junk.
why the rating agencies were in rush to cut everything arround when ever market started raising since early January, were they doing charity, or actually their shorter friends were getting caught shorts down.
We all know there are difficulties in europe, instead of helping and making the environment recovery friendly, why all these doom mongers and so called raters -- trying to paint it as the end of world.

EbayTkmax 27 Feb 2012 , 10:01pm

I used to shop at Tesco all the time! It was in the middle of the town centre where I live. I went there almost every day. Then about two years ago it moved from the middle of the town to about 10 minutes walk away from where it was before. Boy has it made a big difference. Now the nearest shop to me is Morrison's! As its also on my way home I used to shop there 80% of the time. But then something happened last year that changed that. There was a special offer on at Tesco for school clothes. If you spent £25 you presented a voucher from the shop, taking it to counter and you would get £5 off the bill. So I left half of my shopping as I decided to buy all the kids school clothes there instead of shopping around I left half my shopping by school clothes and paid for the first lot of clothes, getting my £5 off my school clothes bill, then went and got my other little basket and paid for the second lot of school clothes, blazers, jumpers, shirts, vest, socks, trousers,underpants and pants! Plus I would also collect Tesco points. I seemed like a fab deal. So I saved £10 was chuffed. But at home the kids told me the colour of the blazers was the wrong colour! They were navy and they should have been black! So I had to return them. I had my money back, no problem then I thought I had stolen from Tesco by not returning the £10 that I had had for the sale. So I felt abit guilty and went back the following day and said to sales man at till I owe Tesco £10 I gave it him after I explained to him about the £5 off each sale of £25 he took it and put it in the till. then I thought, later after I have left, that the till will be £10 over and if he chose he can remove it and no one would know! I told a work colleague, and she said I shouldn't have took the money back, that I needed to return & ask for the money back. I did go back and at first the woman at the till said, "Yes, we do owe you the money back " but she wasn't able to issue me the refund, so she called her Supervisor, who said I wont be getting the money back! I was gutted! So as I never argue in any shop, I simply go to my l simply go to my local trading standard and talk to the Offers there. Sam told me, "I SHOULDNT have returned the £10 and now I have lost it, and there was nothing T. Standard could do to help me" I was gutted again. So I might be only 1 little person, but they have LOST my custom! I only 'use' them if any other shop is closed as they are open 24 hours. that is about once a year. Otherwise I use Morrison, then Asda and finally Salisbury's. I don't wish Tesco success!

Vodafone is another one! I am contract with them. Sadly my contract is two and a half years!!!! I told them I want to leave as I am paying about £40 a month this includes the phone (paying for it) I rang up and asked how much it would cost me to leave them now, was informed £400 !!! So I said how much would it cost me to leave when my contract ended, told £60 so I told her, I will leave then and pay the £60 I will then go to pay as you go.

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