Archive for the ‘Companies’ Category

Recently I was reviewing my embryonic portfolio with a view of banking some profits, so I could reinvest into a share that might offer better prospects for growth.

Unfortunately, or should I say fortunately I couldn’t find a reason to sell any of my holdings, given that I expect quite a bit of further growth to come (including dividends).

One of my favourites remains Tesco (TSCO:LN) since the poor trading period around Christmas 2011, I firmly believe they have been doing all the right things. Namely, focusing on the UK.

-by stepping up the rate of opening of smaller town center, and express stores.
-by refreshing the superstores, and launching new promotions and initatives.
-by ending the expensive US operations.

While their already massive market share means there isn’t much room for growth, there is room for profitability improvements and the sheer size of the operations means any erosion of their customer base in the UK will be minimal.

At the current prices I probably will not be topping-up anytime soon, but given my average purchase price, and the prospect for dividend growth (above what’s already a decent yield), I think it is safe to say these will remain a firm favourite of mine for a long while.

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