Nathan Brooks
Long/short equity, tech, research analyst, eCommerce

There's Plenty Of Downside Left For Ocado

(Editors' Note: Ocado Group trades on the London Stock Exchange under the ticker symbol OCDO.L, with ~ £9.5M average daily volume).

The last six months since my previous article on Ocado (OTC:OCDGF) have been eventful for the company. After recommending shorting the company at $6.50, Ocado's stock rose by 50%, peaking at nearly $10 per share. The London traded equity, OCDO.L rose from £4.48 to over £6.2x, a rise of just under 40%.

However, over the last three months, shares in Ocado have halved in price. Has the time come to cover or do I still see further downside?

Let me briefly recap the motivation for shorting the company from my last article:

    Very high valuation...
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