Logistics firm Wincanton, usually a good indicator of the UK's economic health, has seen its share price plunge more than 80 per cent since 2010. "Like catching a falling knife," is how one analyst describes the shares. Now glued to an all-time low, readers who followed our sell advice (73p, 17 November 2011) are sitting on a profit of more than 40 per cent. Time, we think, to square off short positions.
That, however, is not an endorsement of Wincanton. True, the mainland Europe operations have been sold and debt refinanced. Wincanton has contracts with big-name retailers, too, including all the major supermarkets. Yet, a warning that falling volumes have left its warehouses part empty suggests next month's full-year results will be grim. Look out, then, for news on surplus property and possibly asset writedowns.
