WH Smith in the Wrong Place at the Wrong Time

The Week: Morningstar columnist Rodney Hobson says the books and stationery retailer is a good example of company that has been oversold in the crisis

Rodney Hobson 15 May, 2020 | 9:02AM

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So the first quarter of 2020 wasn’t quite as bad economically in the UK as was expected, with just one lost month. It hurts a cock-eyed optimist like me to say it, but the second quarter will inevitably be much, much worse with at least two lost months. Then it starts to get better but probably not all that quickly.

Even so, there are still opportunities for investors among the swathes of trading updates spawned by the Covid-19 crisis. Take time to look through them and use the scope provided by the frequent share price crashes to invest while stocks are still cheap. One possibility is to look for companies that have just been downright unlucky to be in the wrong place at the wrong time. They have the best chance of coming good as life slowly gets back to normal.

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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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