Ocado (full-year earnings 6 February)
The recent announcement of a deal to use Ocado technology for a major Canadian supermarket sent the shares flying. The firm looks to be successfully reinventing itself as a provider of world-class technology for online shopping, and arguably the potential is huge. The deal was the second within a few months, after it said it would build a warehouse in France for Groupe Casino. Ocado is expected to report a 11.6% rise in earnings, to 1.1p per share, while revenue is expected to be 14% higher at £1.45 billion.
The parabolic move in Ocado’s shares, driven by frantic short-covering, has petered out near £5.50. However, it continues to hold above the previous high of 478p, set back in the summer of 2015. If this continues to provide a base, then longs may be able to reap the rewards of further gains. The 2014 high at £6.23 is the next big level to watch.