Tesco and too big to fail

[MGuru]

Wrote a piece about Tesco's woes.

 

[Pat494]

Looks like a management failure.
Useless managements in my opinion should be prosecuted for wasting a company's assets. And so should the idiots that appointed them to top positions.
Under the present system they disappear into the gloom with huge payoffs. Not good.
This encourages people like the CO-OP CEO and those cretinous lot at RBS etc. to laugh all the way to the bank. Before the war it used to cost them all their assets and a prison sentence. Harsh ? Not likely.

 

[MGuru]

Looks like a management failure.
Useless managements in my opinion should be prosecuted for wasting a company's assets. And so should the idiots that appointed them to top positions.
Under the present system they disappear into the gloom with huge payoffs. Not good.
This encourages people like the CO-OP CEO and those cretinous lot at RBS etc. to laugh all the way to the bank. Before the war it used to cost them all their assets and a prison sentence. Harsh ? Not likely.

You're right. There's no deterrent which would cause CEOs to tread carefully and grow slowly. Shareholders and funds pressure them to beat expectations. Corporate Governance seems non-existent. The market makes heroes out of people like Terry Leahy, then when the market turns, they're off enjoying the fortune they made.

 

[Charles Bronson]

These large companies do not fail. They just change their names and get new management. The chances are that Tescos share price has reached or is near its lowest point.

The price is at MAJOR resistance levels, so profit taking, volatility is likely here. I would guess that the price will start to go up once the support levels have been tested.