Getting latest data loading
Home / Blog / blog / Stocking Up for the Long-Term? || 20/03/2020

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Stocking Up for the Long-Term? || 20/03/2020

Supermarket giant, Morrisons has seen a share price surge after it announced a hiring spree to cope with the demands of coronavirus.

Its shares jumped ten per cent, now down slightly to 190.55p at the time of writing, as it revealed that sales were now five per cent higher than this time a year ago.

The supermarket also announced it would take on 3,500 extra staff to cope with the additional demand. Its results revealed that while sales for the year to 2 February had dropped by 1.7 per cent to £17.5 bn, underlying profits rose by three per cent to £408m.

It has decided to postpone its planned special dividend though amidst uncertainty about how the coronavirus situation will play out.

In terms of share prices, supermarkets are one of the few sectors to benefit from the current crisis but coronavirus aside Morrisons results look solid. Analysts have referred to its decision to postpone the special dividend as prudent and have highlighted its strong balance sheet position and mainly freehold store portfolio. Richard Hunter from Interactive Investor did highlight that the supermarket is still lagging behind its competitors in terms of its online offering however, although he went on to say: “For the most part, however, this is a reassuring set of numbers from Morrisons and the initial reaction to the results will be of some solace to long-suffering investors.”

Ocado has seen an even bigger boost to its share price in the past week, with a spike of 36 per cent at one time, now standing at 1,435p at the time of writing.

The demand for the online supermarket has been so great that it has suspended its online service until Sunday while it works out how to create more delivery slots.

This week’s trading update revealed that Ocado has had a 10.3 per cent rise in revenues to £441.2m over the first quarter. Furthermore, the online supermarket has seen its share price rise by more than 300 per cent over the last five years, with its joint venture Ocado Retail, the partnership between Ocado and Marks and Spencer reporting a 10.2 per cent increase in average first quarter orders.

Ocado has repositioned itself as more than just an online delivery service – its Ocado Solutions system essentially charges retailers to use its own robotic systems. Analysts believe Ocado Solutions could provide serious growth potential for the grocery retailer – Hargreaves Lansdowne said: “Booming e-commerce and the increasing threat from Amazon’s groceries business means traditional supermarkets are increasingly looking for ways to compete. Ocado’s smart platform technology offers the digital answers they’re looking for.”

However, developing the technology is not cheap – its’s costing hundreds of millions of pounds and Ocado has made a pre-tax loss for three years with analysts predicting a loss of around £130m for both 2020 and 2021.

Ocado is certainly flying high now but opinions are divided about whether it is a good bet in the long term. Some have pointed out that despite making a £219m loss in 2019, earnings were up around 12 per cent mainly thanks to the progress with the Ocado Solutions technology, which could stand the retailer in good stead at a time when online shopping may be about to become the only viable option. Others though, have suggested that the decision to close its online system may end up costing more than four days of orders and this coronavirus induced share price spike may turn out to be short-lived.

« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
EXCELLENT

4.81 Average

156 Reviews

George

I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 1 year ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 1 year ago

Anonymous

I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 1 year ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 1 year ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 1 year ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 2 years ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 2 years ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 2 years ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 2 years ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 2 years ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 2 years ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 2 years ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 2 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 2 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 2 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 2 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 2 years ago

Mr Brian C

Easy to deal with.....

Posted 2 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 2 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 2 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 2 years ago

.