TSCO - Filling the gap

I've gone over to the dark side and started learning about technical analysis, particularly about gaps. Tescos up 0.9% today. It looks like it's filling up the downgap nicely. I can't see this puppy going below 312p, which is the low it reached last week,  especially with Buffett on board. I'm hoping it will make it to 380p, filling up most of that gap. If I'm right, still plenty of money left to be made.

So, how's my gobbledegook, then?

Not sure I'll flip this one, though - it seems like a headache-free investment with a nice divvie - well, OK, headache-free if you didn't buy at 380p+.

Dropping like flies

The market is certainly been acting goofy the last week ...

TSCO (Tescos) the supermarket chain - market cap £25.4b - down 16% on Thu 12-Jan-2012. It reported UK LFL sales down 1.5%.

ISYS (Invensys) the software company - market cap £1.5b - down 21% on Fri 13-Jan-2012. It warned that profits would be signficiantly lower due to contract delays and engineering problems.

CCL (Carnival) the cruise operator - market cap £4.8b - down 19% on opening trade on Mon 16-Jan-2012. One of its ships, Costa Concordia, grounded. The loss is expected to be $85-$95m. A drop of 19% corresponds to a loss in market value of £96m, which is about $146m.

Interesting times. Who's next, I wonder.

Tesco in Korea

I saw this video some time ago - but couldn't locate it. In South Korea, Tesco has a "virtual store". They have pictures as advertising boards, which lays out merchandise exactly at would appear in the supermarkets. You then photo the image using your smart phone, scan the "QR code", and the item appears in you virtual cart. You can pay, and have the goods delivered when you get home.

Go figure.

Every little helps

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