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BUZZ-Short bets paying off on Ocado
July 1, 2014 / 10:47 AM / 3 years ago

BUZZ-Short bets paying off on Ocado

** 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:sudip.kargupta.thomsonreuters.com@reuters.net)

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