Good morning, it's Paul here!

I trust that everyone's Christmas break was enjoyable. The press reported that about a third of the UK population intended heading into town & city centres for the Boxing Day Sales. It will be fascinating to see the forthcoming trading updates from retailers, to see which ones did better than others.

I note that Superdry (LON:SDRY) shares have bounced strongly from the recent profit warning. It's beginning to look as if there might be some oversold retailers shares. Although as always, bottom fishing is so dangerous. I'm waiting to see what the trading updates are like, before making any purchases. As some readers have commented though, why get involved in a difficult sector at all? A very good point. Although a bombed out sector often contains some excellent bargains, if you rummage carefully through the things to avoid.

For me, online retailers are the main things of interest. So Boohoo (LON:BOO) and Sosandar (LON:SOS) (SOS is my largest long position) are my top sector picks, along with Next (LON:NXT) - which has a highly successful online operation, and is managing down its retail estate very well.

By my calculations, the recently revised-upwards forecasts for Sosandar still look very undemanding - there's hardly any uplift impled from H1 to H2. In reality, the uplift from H1 to H2 should be very substantial - not only from rapid organic growth, but also from seasonality (Q3 should be a huge seasonal spike for Sosandar, as it includes the busiest months of the year - Oct & Nov). Therefore, I feel that the recent Sosandar sell-off, triggered by imagined (but almost certainly wrong) read-across from the profit warning from ASOS (LON:ASC) , is a buying opportunity. We shall see. Looking at the previous trading updates, it looks as if the schedule should be a Q3 update on or around 10 Jan 2019.

Marks and Spencer (LON:MKS) has turnaround potential, in my view. What is often forgotten is that people get older. Hence, while young people may not be interested in M&S, they probably will do so, once they're 50+ and have more disposable income. The…

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