Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
LONDON -- Last week, in a preview of Tesco's (LSE: TSCO.L) half-year results, I told you about some of the key numbers to look out for.
The U.K.'s biggest supermarket announced its results this morning, so let's have a quick look at how it did in the first half -- and whether it's on track to meet analysts' forecasts for the full year. The forecasts are the analysts' consensus ahead of the results.
Overall, the H1 growth percentages are below the rate analysts are expecting for the full year, so a much stronger H2 is baked into the full-year forecast numbers.
It should be relatively easy for Tesco to beat last year's H2 because performance was weak during that period and included an unusually poor Christmas. Nevertheless, the company has something to do after today's H1 numbers if it's to meet analysts' full-year forecasts. I wouldn't be surprised to see those forecasts edging down a bit now.
In the U.K., like-for-like sales (excluding VAT and petrol) -- the key indicator of how management action to turn around the core home supermarket business is going -- were broadly in line with the expectations of the house brokers: namely, a Q2 rise of 0.1%, following Q1's -1.5%.
Internationally, Tesco's U.S. Fresh & Easy business continues to be loss-making at the same 70-odd million pound level as last year's H1. The company has to improve here in H2 to meet the chief executive's prediction earlier this year of a "significant" reduction in losses during the current year.
In the recent past, Tesco has relied on Asia and Europe as the powerhouses for group growth. However, a hefty fall in H1 profits in these regions now leaves the company facing difficulties on many fronts.
Finally, Tesco maintained its interim dividend at the same level as last year -- the first time it's failed to increase the dividend in I don't know how long.