Why you should avoid Ocado shares

The fact that delivery company Ocado failed to make a profit in 2011 should come as no surprise. But will it ever make a decent return for its investors? Phil Oakley investigates.

Nobody expected Ocado to make a profit in 2011, so today's announcement that it didn't shouldn't come as a surprise.

The trouble is, we don't think Ocado will ever make huge profits. And that means you shouldn't go near the shares.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.