Why there is still value in the Tesco recovery story

Laura Foll, deputy fund manager of the Lowland investment company, explains why she is taking another look at the supermarket giant.

The recent market volatility is throwing up some interesting opportunities. We base our investment decisions on whether valuations look attractive, whether margins are sustainable, and whether strong cash generation can continue. On a P/E basis the FTSE 350 is roughly in-line with its historic average, making it look neither particularly cheap nor particularly expensive, however the underlying quality of companies has improved. Since the downturn, corporates have remained incredibly focused on running lean organisations and have taken a cautious approach to capital expenditure and M&A...