W H Smith - 7% yield + modest capital appreciation = 25% within a year

Oops. All the partying yesterday meant I was not home till about 3.30am this morning guess what - I slept through the profit warning. Just as well really as I would have probably bought a few at about 2.20-30p. My feeling after reading the profit warning tonight is the bear market here is far from over. The warning was very short on facts which leaves plenty of scope for more bad news to follow as the size of the problem becomes quantifiable.

Nothing either about the dividend which will worry income investors. 13p this year was talked about but now that looks over optimistic suggesting further falls in the share price. With big institutions holding large blocks of shares some will now be keen to reduce thir exposure.

Thinking about it I'm pleased to have slept through the fun this morning. What you lot got today while I was asleep was a trickle of information and not all the bad news in one fell swoop.

You'll be pleased to know when I did wake up I didn't have too bad a hangover. With WHS I think it will be more a case of overhang (in shares) when many investors dump their holdings. I am happy to wait further share price falls and c.£2.00 remains my target price to accumulate more shares here.

The share price rise off its mornings lows should leave plenty of room for the shorters who closed their positions to have another go on this one, especially if profit warnings become the norm in this sector over the next week or two.