Newspaper article The Evening Standard (London, England)

DSG Suffers Fresh Jolt as Retail Guru Says 'Sell'; HUGO DUNCAN MARKET ROUND-UP

Newspaper article The Evening Standard (London, England)

DSG Suffers Fresh Jolt as Retail Guru Says 'Sell'; HUGO DUNCAN MARKET ROUND-UP

Article excerpt

Byline: HUGO DUNCAN

IF you thought sentiment could hardly be any worse for electricalsretailer DSG International, think again. One of its fiercest critics got evenmore negative today, downgrading the stock in a scathing analysis thatdescribed the shares as merely a "selling opportunity".

The stock has plummeted since the Currys and PC World company fell out of theFTSE 100 index in November but has further to go, according to Nick Bubb ofPali International.

He reduced his price target from an already lowly 60p to 53p, warning that thedividend is certain to be cut due to lack of cash.

"The efforts of a new chief executive to turn things around are likely to beswamped by the cyclical downturn and the impact of the credit crunch onhousehold spending," said Bubb.

DSG fell another 1 1/4 p to 67p today.

Shares in property firm Mapeley, landlord to HM Revenue & Customs, tumbled morethan 13% after talks about a takeover by US hedge fund Fortress collapsed.

Fortress already owns just over half of the company and the word was that ithas been lining up a bid to buy out the remaining shareholders for more than[pounds sterling]19 a share, valuing Mapeley at around [pounds sterling]560 million.

The shares closed at 1557p last night but news that the talks were over sentMapeley down 212p to 1345p.

It was an edgy start in London after last night's sell-off in New York. TheFTSE 100 index drifted three points lower to 5714.5 as dismal figures frommortgage lender Nationwide showed the housing market in its worst state for 12years.

Credit Suisse reckons plumbing and building materials supplier Wolseley is ahigh-risk investment because of its high debt levels and the outlook for itsmarkets on both sides of the Atlantic.

With the US plunging into recession and the British economy slowing, thingslook bleak. …

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