Future (FUTR) £13.66

Loss to date: 3.8%

Original entry point: Buy at £14.20, 14 November 2019

Magazine publisher Future (FUTR) is facing its second ‘bear raid’ in a little more than six months and this makes us sufficiently cautious to cut our losses on this stock. A bear raid involves a third party publishing a negative report on a stock and seeking to profit from a decline in the share price.

Future responded bullishly to this latest short-selling attack, indicating that results for the 12 months to 30 September 2020 would beat expectations after strong momentum in the first four months of its financial year.

However, the fact the company has been targeted for a second time means the criticisms it faces carry a bit more weight. The charge sheet from Shadowfall is similar to that presented by Stockviews in June 2019 which also published negative views on the media group.

Both parties have raised questions over its accounting and make reference to the company’s frequent acquisitions. Future is currently facing a probe by the Competition and Markets Authority into its purchase of Marie Claire publisher TI Media.

SHARES SAYS: Amid fragile market sentiment it could be hard to generate significant gains until the short sellers go away. Cut your losses and wait on the sidelines until there is more clarity on the situation.

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