In mid-June, just after England’s first match, we flagged a selection of stocks we thought might be World Cup winners. After today’s epic win over Mexico, and with five days to go until the quarter-final against Norway, how are our stocks doing?
What’s the score so far?
The stand-out performers, unsurprisingly, have been pub companies Fullers (LON:FSTA), Marston’s (LON:MARS) and JD Wetherspoon (LON:JDW). On average, our trio have turned in a 6.9% gain against 2.8% for the big-cap index.
Curiously, drinks companies, which ought to be profiting from higher pub takings, have let the side down. Between them, AG Barr (LON:BAG), Diageo (LON:DGE) and Fevertree (LON:FEVR) have lost 2.3% on average with Fevertree losing 6.2% over the period.
| Stock | Price 19 June | Price 6 July | Change |
| AG Barr | 640 | 637 | -0.5% |
| Currys | 153 | 158 | +1.3% |
| Diageo | 1534 | 1530 | -0.3% |
| Domino’s | 188 | 189 | +0.5% |
| Fevertree | 843 | 791 | -6.2% |
| Fuller’s | 698 | 732 | +4.9% |
| Greggs | 1624 | 1551 | -4.5% |
| ITV | 80 | 83 | +3.8% |
| JD Sports | 86 | 83.4 | -3.0% |
| Marks & Spencer | 355 | 383 | +7.9% |
| Marston’s | 49 | 53.3 | +8.8% |
| Ocado | 184 | 178 | -3.3% |
| Tesco | 453 | 463 | +2.2% |
| Wetherspoons | 677 | 725 | +7.1% |
| Average | +1.3% |
Source: Stockopedia
Food providers have been mixed, with Domino’s Pizza (LON:DOM), Marks & Spencer (LON:MKS) and Tesco (LON:TSCO) delivering the goods. On the other hand, Greggs (LON:GRG) and Ocado (LON:OCDO) – both of which appear on the list of most-shorted UK stocks – have failed to step up.
Finally, our bet on demand for big-screen tv’s and tv advertising paid off, although admittedly we got lucky with ITV (LON:ITV). Our bet on demand for replica kit boosting JD Sports (LON:JD.) was less successful, however, despite the team’s progress.
Stay focused
If there’s a lesson here, it’s probably to stick with the obvious and not try to diverisfy too much. Stick to high-conviction ideas and run them, while not being afraid to take off the underperformers.
Also, if hedge funds have been shorting a stock all year, don’t bet against them as they tend to be better-informed. Instead, hoping England get through to the semis and maybe even all the way to the final, we’ll keep backing our winners.
