Friday 16 May 2014

Morning Mumble: AO (Appliances Online)...

Apologies for the lack of communication at the moment its been full on week trading with short on ASOS, Ocado, PCI, and a few others...I'll come back to in due course but suffice to say my Friday trading ban was broken significantly. Asos is likely to be en par with the long on Nickel for the best trades of this year.

For those that read, you'll remember the commentary Morning Mumble: Appliance Online (AO) what next? A short piece...and the week.  Well guess what happened….Appliance Online (AO) starts selling TV (Home Entertainment). So for those analysts not realising the competition value of Appliance Online perhaps they’re starting to realise the brand building. Steady progress with “more to come”, but I will never own this stock as a long-termer for the simple reason it’s so illiquid it can be so predictable.

My brief thought goes to Morrisons (MRW), with news the Management may have found a backer for a take out at Morrisons (I’m long on MRW on dividend date 191/192/194) purely because I see great potential in the vultures play here, no other reason. Unlike most ‘alleged’ retail analysts, they may know about Heinz or Bramston, but their commentary shows they know nothing about the stockmarket forces or social elements to demand.

Leggie, get that bottle of Hendricks ready haha…Kudos on the coverage on Metro Baltic (MET), it was surprising entering the market for a few paltry buys today that enabled me to close the main part of my longs (tax free). So in essence I’m left with equity and no tax efficient spreadbetting and a few CFD’s. All the same leggie, cheers.

Will endeavour to do a Saturday piece !

Time for a gin...Atb Fraser

1 comment:

  1. Fraser- Hi- Yes, I saw the Daily Mail piece re a US PE consortium with a £6.4bn cash offer for MRW- I still cant see how the numbers work out for PE involvement, but perhaps they have non US cash to use, so the same logic as the Pfizer bid applies, with a 30% reimport tax avoided. Heaven knows what MRW have done to their core margins over the last few weeks (my standard olives have gone from 99p to 75p, which wasn't really necessary as far as I could see) but the yield is around 6.5% now so I don't blame you for being paid at that rate for staying in and letting things develop. I wonder what the family feel about a PE move, albeit they don't have large enough holdings to block anything now. Im not long or short (apart from gin liability :-)) so good luck to all holders.

    Re MET- well done Fraser- I will be v interested to see what the cash payout level is, especially given that the latest holder is another stockbroker, to go with the Pershing crew (56% or so) so an obvious play for the cash shell and continued listing of MET, so you are probably right in simplifying your bets here. I would be a bit annoyed if the payout isn't at least 15p, with the rest being retained for the new venture, but Ive been annoyed in the past and no doubt I will be in the future too :-))

    Cheers. The Leggie

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