As market multiples have expanded over the past few years, it has become increasingly difficult to find companies with moats that trade at single-digit P/E multiples. But following bad short-term news, the occasional gem does fall to the floor. Tesco (OTCPK:TSCDF, TSCDY), which trades over-the-counter in the US and as TSCO in London, is a terrific example.
Tesco is one of the world's largest retailers, specializing in the grocery market in twelve countries (mostly in Europe and Asia). But it is not the company's global reach that makes this company interesting, but rather its local penetration.
Tesco owns 28.6% of the grocery market in the UK, which makes it the market leader in its home country, the...
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