Ocado - comment

Ocado is about to exit the FTSE100, which will prompt some selling, but it is also suffering from short selling. The ongoing valuation row with M&S over the performance of the Retail JV is creating negative sentiment, and our view is that the sooner Ocado can exit (not just deconsolidate) the business the better. The jockeying between M&S and Ocado is ultimately about the exit price M&S will pay.