Tesco inquiry into profit overstatement

[Terpe]

Tesco has suspended four executives, including its UK managing director, after the supermarket overstated its half-year profit guidance by £250m.

Source (http://www.bbc.co.uk/news/business-29306444)

[Terpe]

Wow.....What's eating Tesco?

[KeithD]

Easy way of making money when news like this breaks as the market overreacts to bad news. As soon as it was made public, shares dropped 11%. Once it settled it was only down 8%. Easy 3% in 30mins :xxgrinning--00xx3:

[Terpe]

Not sure about any motivation on 'shares scoring'
Tesco shares are still down about 7% at 212.85p
Still significantly down after the initial drop of 11% and still heavily down 36% year-to-date.

All businesses play around with numbers to reveal alternative strategies.

Instead of getting down to basics and fixing the underlying issues somebody might have gone a step too far to hide the truth or make things look better than they really are. Whether for personal gain remains to be seen.
Whichever way it ends up the scale of such an accounting error will cause damage.

Maybe even a hint that the current woes of Tesco are worse than commonly known.

No good Tesco continuing to blame the likes of Aldi and Lidl IMO

Just my 2 centavos worth.

[KeithD]

I'm waiting for a Nigerian to forward the £250M donation to the forum he promised :Erm:

[Dedworth]

Tesco the ultimate rogue trader