Stocks to Short

Stocks to Short:

HMV: Short@11p /Mkt Cap: £4.76bn

·        The Most shorted stock in the UK.

·        Paying the price for failing to embrace the internet much sooner

·        Furthermore, moves to diversify the product offering smack of desperation, with competition in clothing and electrical products already hugely intense

·        Shares in HMV Group have slumped almost 17% after it reported falling sales and deepening losses

·        Simon Fox (CEO) has had 5yrs in job to turn it around and failed! What else can he do, ships sinking, I’d get a new captain!

William Hill & Ladbrokes: Short@191p / @135p

·        Ladbrokes & William Hill: More betting going online and with many outlets overheads are high.

·        Also Betting on Horse racing is dwindling which is a key focus for these two

·        Also with stagnant UK Economy, less spare change in the pockets for people to go to the bookies and put on a bet.

·        Blackrock announced a large short on it recently.

Nestle: @52Chf / Mkt Cap 181m

·        Rising Cocoa prices due to the Civil war in Ivory Coast and subsequent EU import ban from Ivory Coast cocoa, which is the world’s largest Cocoa supplier in the world means Chocolate has become a lot more expensive and since it is not a necessity the high prices for chocolate will be passed onto consumers, but we’ll see demand fall (75p for a mars bar no surprise!!) and therefore profits will fall for Nestle. Doesn’t look to be priced into the market yet!