Shares digital

Two dominant shareholders in value retailer Instore (INST) (South Africa-based Tradegro via Dr Wiese and Seaham Investments via Abdul Tayub) have upped their stake in the company. These moves have sparked the market to reassess the future of the company, one that has had a number of false dawns over the years and has frequently changed top management. Tayub, who is a Leicester-based cash-and-carry operator, acquired his 30% holding last May, while Tradegro is a long standing investor, and the market is speculating that this apparent bout of confidence could lead to a takeover bid for Instore.

Christmas trading was relatively encouraging, showing underlying sales up 2.9% in the 18 weeks to the end December, while fewer price cuts should bolster margins.

The market is forecasting a substantial cut in losses this year, to around £1.1 million, with hopes running high that a modest profit could be on the cards in 2008/9.

Shares says: There is little guarantee of profits yet, so share price excitement is likely to come from bid hopes.

The writer holds shares in this company