Ocado and the fastest moving shares in the FTSE 100 in 2019

Wednesday, Apr 10 2019 by
31
Ocado and the fastest moving shares in the FTSE 100 in 2019

Back in the early summer of 2016, the online retailer Ocado had the dubious honour of being the most shorted stock in the market. Around 20 percent of its shares were out on loan as hedge funds bet heavily against it. With a market cap at the time of £1.57bn, it was pilloried for having a stretched valuation and shaky business model.

Fast forward three years of course, and things look very different. Ocado has some big deals in the bag with international retail giants. And while profitability seems some way off, it’s now a business that gets taken seriously. Whisper it, but Ocado is turning into one of the UK’s big tech-driven success stories of recent years. With a valuation a whisker away from £10 billion, most its short sellers are long gone.

Indeed, against a backdrop of heightened uncertainty - and the market slide late last year - Ocado has thrived. In terms of relative price strength, the stock leads the FTSE 100 by quite a distance on a 1-month, 3-month, 6-month and 1-year basis.

Bear in mind that a year ago a pretty hefty eight percent and more of its shares were still being shorted. Since then the price has confounded the smart money and soared by 170 percent. Nothing else comes close. Those that were utterly convinced it was a house of cards have probably had a lot of explaining to do.

Whatever happens from here, Ocado’s stunning change of fortune in recent years is a reminder - on an individual stock basis - of just how unpredictable markets and investing can be. Finding these kinds of shares (and sticking with them) can be exceptionally hard. Which is why a diversified portfolio approach may actually be a preferable way forward.

After the declines in the market last year, there has been a modest rally unfolding in the early months of 2019. The FTSE 100 is up by around 10 percent and the FTSE 250 is slightly ahead of that. Recoveries among the smaller stock indices like the AIM All Share have been more muted.

A look at the winners among the larger shares suggests that while Ocado has been a special case, there are  trends out there. It reinforces the view that cross-sector diversification really can be a benefit to investors. (The table is sorted…

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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. 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. ?>


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Ocado Group plc is a United Kingdom-based online grocery retailer. The Company's principal activities are grocery retailing and the development and monetization of Intellectual Property (IP) and technology used for the online retailing, logistics and distribution of grocery and consumer goods, derived from the United Kingdom. The Company offers end-to-end operating solution for online grocery retail based on technology and IP, suitable for operating its own retail business and those of its commercial partners. The Company's brands include Ocado, Ocado Smart Platform, Sizzle, Fetch and Fabled. Sizzle is a kitchen and dining store. Its beauty store is in partnership with Marie Claire. The Company's Ocado Smart Platform is a solution for operating online retail businesses. The Company's Ocado Smart Platform combines its end-to-end software and technology systems with its physical fulfilment asset solution. more »

LSE Price
1399p
Change
-0.1%
Mkt Cap (£m)
9,698
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is LON:OCDO fundamentally strong or weak? Find out More »


4 Comments on this Article show/hide all

Silver Moon 12th Apr 1 of 4

Hi Ben, do the runners keep on running? I don’t see Fevertree and Greggs in your screen, likely they would have been in it when Ocado was well underwater in anyone’s portfolio. Maybe FVR and GRG are on their way down even now.
Looking back at my 19-share list of software companies in my virtual £500/share portfolio of last October date, I see that MCRO has gained £176 with AVV in 2nd place being £116 up and 3rd is SDI at £114. Great stuff, but overall the portfolio is £251 underwater. The losers? ACSO the biggest with minus £336, next is CML minus £177 and then SOPH losing £148. These are the guys who put this portfolio underwater. Had I done a bit of weeding and collected some dividends this picture would look a bit better. It’s painless fun doing this and what a glorious waste of time!

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Richstead 12th Apr 2 of 4

It rubs in the fact that I should not have sold my Halma Shares.

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herbie47 12th Apr 3 of 4
1

In reply to post #468566

£FEVR and Greggs (LON:GRG) are not FTSE100 companies. You can run that screen for other indexes, maybe quite interesting.

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herbie47 12th Apr 4 of 4

Just looking at Fevertree Drinks (LON:FEVR) it has only gone up about 10% in the last 6 months, Greggs (LON:GRG) is up 69% and is the highest in the FTSE250.

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