My personal investment pension (SIPP) has produced some amazing winners since I started building it three years ago. Kostan, Rolls-RoyceAND Lloyds on my watch they are all at around 200%.
But investing is not all about champagne and steaks, there is inevitably the odd portion of slender gruel. In my case it’s three stubborn lumps. By pure coincidence, the three worst-performing companies in my SIPP published their full-year results yesterday (February 25) or today and they all stunk. So will I finally pull the plug?
Image source: Getty Images
Aston Martin stock is a car crash
Manufacturer of James Bond cars Aston Martin Lagonda (LSE: AML) is the worst of them. If this FTSE250 stock photography would be a film franchise, it would be a total horror movie. Shares are down another 12.5% ​​today and are down 93% in five years. I lose about 70%, which almost feels like a victory in comparison. Fortunately, I only invested a miniature amount.
Yesterday’s numbers were ugly. Revenue fell 21% to £1.3 billion and net debt rose to £1.4 billion on frail demand and low tariffs. Executives are cutting more jobs, blaming geopolitical turmoil and macroeconomic pressures.
One of the dangers with these horror stocks is that they are always on the brink of a comeback and then keep falling. My stake is so miniature now that it’s not worth selling. I’ll keep it for its novelty value and as a learning experience. However, I wouldn’t suggest anyone consider purchasing it.
Ocado is a stinking cheese
Okado (LSE:OCDO) is almost as huge a car accident. It’s down 90% in five years and I have a loss of 47%.
FTSE 250 shares fell 10% on morning results before recovering slightly after plans were revealed to cut around 1,000 jobs in a bid to save £150m. The implementation of an automated customer service center (CFC) has suffered setbacks, with key U.S. partner Kroger and Canadian company Sobeys withdrawing.
There was a ray of hope here. Underlying profits increased to £178m and management estimates that Ocado will be cash flow positive for the full year in 2026/27. This would be a major milestone for a company that has been wasting money for years.
It still needs more CFC to convince the market, and again I wouldn’t buy more or encourage anyone else to consider buying more. I may be mad, but I’ve been through so much that I’ll stick with it.
Diageo will have to fight back soon
FTSE 100 spirits giant Diageo (LSE: DGE) is my great hope for recovery. The one I really went to town on. And once again he disappointed me.
Shares fell 12.7% yesterday after novel CEO Dave Lewis cut the dividend and lowered guidance amid a tough U.S. market. Today they fell again and in five years they are down 45%.
I worry about the effects of weight loss medications and changing my drinking habits. However, Diageo still has an excellent portfolio of global brands and generates plenty of cash. I suspect that as consumers feel richer, they will become thirsty again. I won’t sell. I’m even tempted to buy more, but Diageo averaging is a habit I need to give up.
So I’ll hold all three. I’m still pretty sure about Diageo, but the other two are complete crap. Investors hunting for top FTSE shares probably shouldn’t start here.
