Sell Twitter as Soon as You Can

THE WEEK: Professional investor Rodney Hobson highlights the stocks that have posted positive results this week, and likens the Twitter IPO with the Royal Mail floatation

Rodney Hobson 8 November, 2013 | 1:46PM

If you want to invest in the High Street, pick food. Former clothing store Marks & Spencer (MKS) demonstrated this for the umpteenth time this week as food sales, which now account for 55% of the business, rose 3.2% in the second quarter to the end of September, while clothing struggled.

The reason is that M&S food has long ago found a niche, offering higher quality at higher prices, while clothing, which used to be a cut above most of the High Street, still cannot find its way, unsure whether to compete with Primark, which is leaping ahead at the cheaper end, or move more upmarket.

It is still early days to condemn the autumn/winter range but one suspects that it has not had the desired impact. I’m no fashion expert but the women’s clothing range at my nearest store looks uninspiring, although that could be because it is not one of the stores blessed with the best selling items that M&S has curiously decided to keep in short supply. This could be yet another much heralded, much advertised disappointment.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
easyJet PLC699.60 GBX2.25
International Consolidated Airlines Group SA226.70 GBX-2.16
Marks & Spencer Group PLC98.16 GBX-3.91
Royal Mail PLC172.05 GBX-0.03
Ryanair Holdings PLC10.97 EUR0.32
Sainsbury (J) PLC197.25 GBX-1.57
Tesco PLC221.50 GBX-0.14
Twitter Inc30.87 USD0.19

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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