Hobson: Warehouse Fire Adds to Ocado's Problems

Online food retailer could well do without the unfortunate fire at its Andover distribution centre, says Morningstar columnist Rodney Hobson 

Rodney Hobson 8 February, 2019 | 2:41PM

Ocado Fire

Ocado (OCDO) shareholders didn’t know whether they were coming or going on the morning of the annual results. The shares dropped nearly 4% at the opening as investors took fright at figures showing higher turnover but higher losses, not quite the combination that investors like.

Soon, however, the shares had recovered the losses, dragged up by a strong showing in the wider stock market. By midday Ocado was nearly 4% ahead, making it one of the best performers of the day. It just goes to show how opportunities open up for alert investors.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Marks & Spencer Group PLC100.80 GBX0.80
Ocado Group PLC1,359.50 GBX2.26
TUI AG340.60 GBX-0.84

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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