** Short bets against Ocado are paying off as the online grocer’s shares reverse a stronger open and slide more than 4 percent after its H1 results.
** According to data from Markit, short interest in Ocado had been increasing ahead of its interim results, rising to just over 5 percent from 1 percent at the start of 2014.
** Ocado reports a profit for the first-half of the year on Tuesday, putting it on track to make its first annual pre-tax profit this year.
** However, Ocado not immune from competition in the “famously awful” UK food retailing market, notes Mirabaud Securities equity research partner Steve Clayton.
** Within a sector suffering shrinking margins, Ocado’s -6.7% ROE is the worst among peers.
** GMT Capital, BlueCrest Capital & Blue Ridge Capital among funds short the stock as of latest disclosures.
** According to Thomson Reuters StarMine, 3 analysts have a “buy” rating on Ocado, while 4 have it as a “sell” and 3 have it as a “hold”. (RM:firstname.lastname@example.org)