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.
140p
About the Author's Blog
Investment blog of an amateur private investor. The blog also contains non-investment related posts. ...read more or visit website »
Disclaimer:
As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.
Ocado Group plc is a United Kingdom-based holding company. The Company is an online grocery retailer. The principal activity of the Company, along with its subsidiaries, is retailing and distribution of grocery and consumer goods within the United Kingdom. The Company owns Ocado Holdings Limited, which holds the entire interest in Ocado Limited. The principal activity of Ocado Limited includes retailing and distribution of grocery and consumer goods. On February 9, 2010, the Company acquired Ocado Limited. The Company's wholly owned subsidiaries include Ocado Holdings Limited, which is an holding company; Ocado Limited, which is engaged in retail and distribution; Ocado Information Technology Limited, which is engaged in intellectual property, and Ocado Cell in Atlas Insurance PCC Limited, which is an insurance company. Ocado Holdings Limited is a 100%-owned subsidiary of Ocado Group plc. more »
