Tesco Case Study

615 Words2 Pages

Reason: The reason for me to decide to re-allocate Tesco’s shares is that in the existing portfolio it holds the highest shares of 150,000 and the company’s performance has not been good recently as their profits has been felt. On the other hand, the retailing sector has not recovered after the subprime crisis. It is estimated that this situation will last for several years.As the portfolios aim is to maximation of income so therefore I will have to invest shares which are performing well and has a high dividend yield. So therefore I would allocate 55,000 shares to Astrazeneca and sell off the remaining 95 000 shares. The reason for me to purchase Esure Group is that it has a high dividend yield of 6.3% and a low beta of 0.77. The Esure Group is a UK-focused personal lines insurer. By purchasing this stock which has low beta it can effectively reduce the weighted beta of the whole portfolio, although the current portfolio is below 1 which is good so purchasing this it will go down even more. The EPS has increased a lot in 2013 and the revenue also has been increasing. The forecast...

Open Document