Tesco Stock Market Analysis

1495 Words 6 Pages
The Stock Market Challenge

For this topic we were set a task to submit a report that aims to analyse and evaluate the financial performance of an organisation we each individually chose for the stock market challenge.

To begin with I chose the company Glencore to invest £100,000 in. It is said that Glencore is one of the world’s largest diversified natural resource companies, producing and marketing over 90 commodities, with a network that spans more than 50 countries and around 181,000 people so I thought this would be the perfect company to invest the money into.

As a few days went by, I had been researching more about Glencore to make sure i had made the right decision only to find out that Glencore has reported a deep first-half loss
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Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England and the United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK, Ireland, Hungary, Malaysia, and Thailand.
I decided to swap companies and invest £100,000 into Tescos as I had done research that Tescos profits have been higher than Glencore numerous times, so I came to the decision to take the risk and hope that the profits become higher once I invest £100,000 into
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I found out that Pre-tax profit for the 26 weeks to 27 August was £1.9 billion, up 12.1% on a year earlier. Group sales rose 8.8% to £35.5 billion, but like-for-like UK sales excluding VAT and petrol fell 0.5%. The company highlighted ‘excellent growth’ in Europe and Asia but also ‘subdued demand’ in the UK. The company said ‘weak’ sales in the UK were not helped by slowing demand for non-food items, particularly in electronics and entertainment, two of its largest product groups. Other research informed me that in 2011 Tesco is expected to reveal this week that it has suffered its worst six months in the UK for 20 years, as cash-strapped shoppers cut back on food, books, clothes and electrical goods”. Clarke, P (2011) Tesco profits grow but UK sales subdued, Available at: www.BBCnews.com (Accessed: 5th October 2011). This was a huge profit loss for Tescos as it meant they wouldn’t be getting as much customers and sales in their stores. This continued right through until the end of 2011 and Tesco had to keep fighting and hope for the best for 2012 and for their profits to pick

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