In 2011, RB (Reckitt Benckiser) was down 7% in a day on news that a director had decided to retire (he was only in his 40's, or was it 50's?). The share price quickly recovered. Today, TSCO (Tecso) was down a honking 16% on news that UK l-f-l sales were down 1.3%. TSCO now trades on a PER of 9.2, lower than at any point during the last decade.
That such big, stable, profitable companies can experience such precipitous market declines is quite amazing. Anyone who loaded up today is going to make a lot of money; I'm pretty sure of it. I reckon it's a trade that, in the course of a week, could earn as much as the rest of the market will in a year (that's not an actual prediction as to how I think the market will perform, mind). The trick is knowing exactly the right share to go all-in on.
We shall see. 323.45p
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2 comments:
I'm with you on that one. I think Buffett was in an at average cost of 360p, so will be interesting to see if he averages down anytime soon
Totally agree, I just hope these low prices hang around for a while as I'm not due to buy anything again till next month. At the start of the month at 403p Tesco came in at #63 on my list of FTSE350 stocks out of 190 or so. I think at 325p it's likely to be pretty near the top... perhaps even catching up with M&S.
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