The Investment Column: No Christmas pick-up for Oasis
Friday 23 January 1998
Analysts were looking to yesterday's Christmas trading statement for news on whether Oasis's sales had picked up from their weak level in early December. Instead there was news of a continued decline, with sales in the eight weeks to 17 January down by 9 per cent on a like-for-like basis.
The crumb of comfort for shareholders is that the group claims that full- year profits will be in line with expectations. Even so, analysts edged down forecasts from pounds 11m to around pounds 10.25m for the year.
Investors are probably not impressed with management who sold shares at an average price of 400p before the first of last year's warnings. But they should not lose hope now.
At these levels Oasis shares are rated on a forward p/e of under 10. The balance sheet is strong, with cash in the bank. There is no evidence of a longer-term malaise, just a short-term problem created by buying mistakes. And the business is profitable. Oasis is no Laura Ashley.
In a sense, the shares may be now represent a good each-way bet. If management restores the group's fortunes the shares should recover and if they don't it will be a takeover target. Though the shares are likely to languish until there is more news on trading - the next results are in April - they look like a good recovery play with little downside.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Rob Lowe hits out at White House decision not to meet Israeli leader
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Winston Churchill: From accusations of anti-Semitism to the blunt refusal that led to the deaths of millions
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...