Ocado Slips, Fresnillo Gains, Novartis Drops

On this episode of Stock Movers:

- Ocado shares tumbled by the most since February after a major US partner questioned the future of its warehouse networking, raising concerns that it could close existing sites as it looks to cut costs.
- Fresnillo and other European miners are outperforming on Friday thanks to a broad rise in metal prices, with gold, copper, aluminum and nickel all gaining ground.
- Novartis shares drop as much as 2.9% after the stock was downgraded to sell from neutral at Goldman Sachs. The analysts say the Swiss drugmaker’s valuation looks “stretched”.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News.

Speaker 2 (00:08):
The Stock Movers Report, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:16):
Now, let's have a look at the stocks on the
move today. Here in up, I'm Caroline Hepcut alongside Tom McKenzie.
I'm a joined by Bloomberg Sam on Stead. Good morning, Sam.
Acado's slipping. What's behind the big drop for the well
the superman not quite a supermarket retailer. They make the
equipment right for warehouses.

Speaker 4 (00:34):
Robot warehouses, and that's really the major part of their
business now that most of the joint venture that they
had for retailer has gone to mar Suspencer. Kroger, the
big US grosser, is probably their major customer. That's the
one that people watch the most for licensing this this
warehouse technology. Comments from yesterday from Kroger after the results
suggesting that they're considering bringing more of their deliveries in house.

(00:56):
That is obviously really not good news for a Cardo
because this is the kind of big flagship deal that
they did for that side of their business. Shares down
about ten percent. I would know Ccado quite a volatile stock,
you know generally, so that you know that it might
be a little bit more exacerbated than they might be
for other companies, but ten percent down and really it's
quite a fundamental issue if Kroger start to bring more

(01:17):
stuff in house and don't use a Cardo's right.

Speaker 1 (01:20):
It is interesting, isn't it, how volatile that stock is
compared to some of its some of its peers. When
it comes to a very different sector, the miners, they're
doing quite well. So yeah, so far in a session.
What's going on with the mining sector.

Speaker 4 (01:36):
Well, gold miners in particular, so I mean almost the
opposite its linking to the gold price. Yeah, I mean
almost the opposite really of Okada. I mean not just
not volatile this year, but just pretty much one direction
throughout the entire year. So for as Nilo, who you
just mentioned, Tom, you know, they are flying this year.
They are about two hundred and seventy two hundred and
eighty percent. It's pretty much consistent throughout the whole year.

(01:56):
Most of that is through the gold price obviously, and
they're effectively printing money for themselves at the moment. They're
cutting costs a lot of their minds, but gold price
is going up, so everything is kind of working in
their favor, and today gold moving further and further higher,
testing the record that it hit on Tuesday. Silver also
going up for as Nilo for example, also Mine for silver,
So all everything around these companies at the moment is

(02:17):
working in their favor, and gold Mine is continually rising
on that.

Speaker 3 (02:21):
Hmm, that's interesting. Let's think about the pharmaceutical sector. Nevartis
is down. This is on a huge story in the US.

Speaker 4 (02:29):
Well, this is actually mostly on a Goldman Sachs downgrade
this morning, so god and Sacks cut norv Artists to
sell today. They basically said that the last few years
Navasa has been on a good run. They've been delivering
really good, solid sales growth, but over the next couple
of years they see that structurally shifting a little bit,
bigger competition from generics coming through, and that that might

(02:51):
result in growth just kind of generally and very structurally
moving a little bit lower than it has been in
the last few years. Quite a rare thing as well
as sell rating for Novartists. Almost all the analysts who
cover them or either hold or buy, so that's standing
out today and also a very big stock, so that's
part of what's dragging the stock six hundred a little
bit behind the UK's for S one hundred.

Speaker 2 (03:10):
To day the Stock Movers Report from Bloomberg Radio. Check
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