Tesco, Britain’s giant supermarket chain continues in its death spiral trend towards eventually becoming a mere fraction of its former size as barely a few weeks after its latest profit warning of a 25% collapse, today we find out that its financial controllers (bankers) and accountants can’t control or count anything as the management wakes up to find that £250 million of expected profits no longer exists the news of which wiped out £2 billion in market capitalisation as panicked stock holders belatedly start to jump ship as the mega-corp is literally disappearing down a financial black hole.
The Tesco board reacted to the vanishing £250million by suspending Tesco’s top management, so now one of Britain’s biggest companies does not have any one running it at the top, primed to collapse further into a black hole as we wait to see what next big financial accounting scam is taking place at Tesco.
I’ll tell you what I think really happened, the same thing that happened with the banks, top management in a state of denial that their company is in free fall to the extent that they would make up profits gambling that the company can be turned around before the SHTF.
Tesco stock Investors in a state of denial if not shock who have clung on in hopes for a recovery have now been dealt a further cold hard dose of reality as what was revealed today is a company that is managed by so called finance experts that can’t even count!
The Tesco stock price continues its death spiral towards becoming a penny stock that currently stands at £2.03, down near 50% from when I first warned of the dangers of holding Tesco stock in October last year when the Tesco stock price was just 3% shy of its 2013 peak of £3.86, warning that the Tesco management had become focused on club card gimmicks whilst ignoring what customers really wanted which was GOOD customer service and VALUE FOR MONEY, and similarly have warned several times since that the Stock was literally in a death spiral. Those who have not heeded my calls to date to exit this doomed suicidal stock need to realise that it is still a long way down to ZERO! Or more probably to a level with sparks a hostile takeover.
Tesco stock Investors in a state of denial if not shock who clung on in hopes for a recovery have now been dealt a cold hard reality as they see their dividend slashed by 75% to just 1.1p a share, so that Tesco can bolster its balance sheet by an extra £1 billion per annum that too ultimately will vanish down the expanding black hole that seeks to consume the super market giant.