Online grocers Ocado (LON:OCDO) is up 61% YTD, defying everyone who thought it was way overvalued. Analysts expect revenue growth to continue, with the company making it to profit for y/e/ 30-Nov-2013, and revenues of £890m expected for y/e 30-Nov-2014. OCDO has a current market cap of £850m.
ValueWalk reported recently that legendary investor Jim Chanos is short both Ocado and ASOS. According to Shorttracker, OCDO has a short interest of 17.2%. According to Square Mile Data, stock on loan amounts to 22.2%, and is one of the most shorted stocks.
Like CPR (Carpetright), another heavily shorted stock, the share price defies gravity.
In its prelims issued on 7 Feb, OCDO noted strong momentum in customer growth, with the basket size maintained. OCDO plans to increase capacity, and has a net cash position.
On Stockopedia, OCDO is flagged by the Unholy Trinity Short screen (which is the result of high valuation, low Piotroski score, and fast asset growth), the Earnings Upgrade Momentum screen, and the Kirkpatrick growth screen.
Will the bears finally have their day on this stock, or will the positive expansion combined with a short squeeze push these shares much higher?
This one should be fascinating to watch. I have my popcorn.