posted by Admin on Apr 21
Every body is after Recession Proof Stocks and indeed is there such a thing as recession proof money?. With today’s sparkling (well OK better than expected) results from the UK leading Grocer Tescos where UK like-for-like sales are according to Andrew Wade of Numis “marginally better” than expected, and UK margins are a touch ahead of expectations, However, possibly the only small blot on the horizon might be that fact that the group’s net debt of GBP9.6B is pushing interest costs up, he adds.
Tesco apparently plans to cut net debt in the current year by lowering capital expenditure, selling some property, reducing stock levels and other improvements in working capital. Numis also expects to cut forecasts by around 5% for FY’ 10, due in part to Tesco’s net debt position. Numis is also reviewing its 420p target price and retains a buy on the stock. Shares closed at 332p Monday.
As of the time of this posting, its shares were trading around the 349 in early trading in London.