Tesco Crisis - Stock Price 60% Collapse
Companies / Retail Sector Mar 12, 2017 - 01:06 AM GMTTesco by far ranks as Britain's number 1 retailer in terms of sales of over £54 billion for the last accounting year, more than twice its nearest rival Sainsbury. The Tesco stock price says it all of just how badly run Britain's super market giant has been for many years, which goes beyond the usual dynamics of a badly run businesses that over expanded during the good years. For you know when a companies in deep trouble when the Serious Fraud Office has been investigating it for several years. And whilst the fraud is estimated at £326 million, however when it's all done and dusted the verdict could be accompanies by an even bigger shock to Tesco's finances, a mega-fine of upwards of £500 million that could be the final nail in Tesco's coffin.
At £1.87 the Tesco share price is trading at LESS than 50% of its 2013 high. That's a 50% LOSS of stock market value over the past 4 years, valuing the super market giant today at just £15bn. I am sure many inexperienced investors looking at the 50% collapse in the Tesco share price might be imagining how cheap Tesco is right now, find out what the prospects are for Tesco's stock price in my latest video.
Whilst my previous video in this series explained why the UK retail sector faces a perfect storm of rising prices, falling consumer disposable earnings and haemorrhaging customers to the discounters, that could even result in a Woolworth's moment...
Ensure you are subscribed to my youtube channel for new videos in this retail sector series as I take a look at the stock price prospects for Britain's biggest retailers.
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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