Having insisted that it was on track to hit forecasts (which included an improved cash position), AO World (AO.) has today announced a £40 million institutional book build and Primary Bid Offer, at 43p – last night, the shares were 47p. So, should you consider an investment? Er…no.
Yesterday, there were press reports concerning third-party credit insurers: they had tightened their terms, which would lead to suppliers demanding cash sooner from AO World (AO.). Today, the company served to clarify the position, yet seems to have calmed few nerves, if any at all.
It was about six weeks ago when I last called AO World (AO.) “comedy” and the reasons for not investing into (as per its website this morning) the ‘largest online-only white goods and electricals retailer in the UK…we also operate in Germany’ continue. AO…let’s continue not to invest (despite the near 71% fall of its share price over the last year).
Another busy Friday on the markets. It is all good fun especially with regard to my holdings in Reckitt (RKT) and SIG (SHI) shares both of which produced positive updates. So a quick appraisal of the good news first…and then I will move onto the continued comedy at AO World (AO.).
It is another manic Thursday with plenty of global market news and volatility to enjoy. Obviously I completely love it. In terms of the UK there are about ten different names I could write about today, but I will just leave it to four. After all yesterday I loved-up easyJet (EZJ) already and today’s first quarter numbers hit nearly 12 million passengers, nearly four times the level a year ago.
