I bought in last Thursday. Price has dropped 44% in the last month and appears to be an over-reaction to the trading statement. More news Wednesday, probably a reaction, after which I expect a recovery.(I hope)
Iceland confirms trading statement Wednesday, Booker performance to feature
LONDON (AFX) - Iceland Group PLC will make a trading statement on Wednesday,
which will highlight recent trading at its Booker unit the food wholesaling
and distribution group bought by the frozen foods group last year, an Iceland
The Iceland spokesperson said Wednesday's statement will include details of
current trading at Booker, and its cost savings performance relative to targets
set when Booker was first bought.
Industry sources have suggested that the Booker trading statement may make
They expect Iceland to reveal that Booker sales have been disappointing, and
Iceland has failed so far to hit the cost-savings targets made at the time
of the buy.
Such news would come as a further blow to Iceland, which has seen its shares
tumble since its profits warning a week ago. Any poor news on Booker would mean
that forecasts for Iceland, which were slashed in the wake of the recent gloomy
trading update, could be cut further.
But the spokesperson declined to comment on whether the departure of
chairman Malcolm Walker, which was widely touted in the weekend press, will be
announced at the same time.
However, industry sources have told AFX News that Walker was asked to resign by newly-appointed chief executive Bill Grimsey over the weekend. They said Grimsey put Walker under pressure to resign because of the bad publicity
surrounding his sale of a 4 mln Iceland shares at 339.13 pence in mid-December.
The stake sale, which was made only a month before Iceland's poor Christmas trading update, has attracted a raft of negative press comment especially as Iceland's share price has since collapsed.
At 11.42 am, Iceland shares were trading 10-1/2 pence lower, or 5.13 pct, at 194 but above morning lows.
Source: Updata Newstore