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Tesco Started The Year Off Great But Will It Last?

Last month I wrote about how Tesco's (TSCDF) horrible 2014 was punctuated by investigations regarding an announcement the company made that it had overstated profits to the tune of by 263 million pounds ($423 million) over the previous few years. I questioned whether this would be a fatal blow, or if the retail giant would quietly slip into the shadows.

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Obviously, that's not going to happen anytime soon. Despite Tesco's recent troubles, it still holds the highest market share in the UK market. However, discounters like Aldi and Lidl have are slowly chipping away and will continue to pose a threat.

In early January, Moody's downgraded the grocer's ratings to junk, saying that as the company works through its turnaround, "the company's financial profile is likely to remain leveraged beyond what we consider to be commensurate with an investment grade profile." On the whole, it seemed as… Read More …