My Self-Invested Personal Pension (SIPP) has produced some cracking winners since I started building it three years ago. Costain, Rolls-Royce, and Lloyds are all up roughly 200% on my watch.
But investing isn’t all champagne and steaks, there’s inevitably the odd dollop of thin gruel too. In my case that comes in three stubborn lumps. By sheer coincidence, the three worst performing stocks in my SIPP all published their full-year results either yesterday (25 February) or today, and they all stank. So do I finally pull the plug?
Aston Martin shares are a car crash
James Bond car maker Aston Martin Lagonda (LSE: AML) is the worst of the lot. If this FTSE 250 stock were a movie franchise, it would a total horror show. The shares fell another 12.5% today and are down 93% over five years. I’m nursing a roughly 70% loss, which almost feels like a win in comparison. Thankfully, I only invested a tiny sum.
Yesterday’s numbers were ugly. Revenue dropped 21% to £1.3bn and net debt climbed to £1.4bn, as weak demand and tariffs bit. Management is cutting more jobs while blaming geopolitical turmoil and macro pressures.
One danger with horror stocks like this is that they always look on the brink of a comeback, only to keep flopping. My stake is now so small it’s hardly worth selling. I’ll hold it for novelty value and as a lesson learned. I wouldn’t suggest anyone considers buying it though.
Ocado is a stinky cheese
Ocado (LSE: OCDO) is almost as big a car crash. It’s down 90% over five years and I’m sitting on a 47% loss.
The FTSE 250 stock slid 10% on this morning’s results before recovering slightly, after it unveiled plans to slash around 1,000 jobs in a bid to save £150m. Its automated customer fulfilment centre (CFC) rollout has hit setbacks, with key US partner Kroger and Canada’s Sobeys both pulling back.
There was a glimmer of hope here. Underlying core earnings jumped to £178m and management reckons Ocado will become full-year cash flow positive in 2026/27. That would be a milestone for a business that has burned through money for years.
It still needs more CFC to convince the market and again, I wouldn’t buy more or urge anyone else to consider piling in. I may be mad but I’ve been through so much, I’ll stick with it.
Diageo must fight back soon
FTSE 100 spirits giant Diageo (LSE: DGE) is my great recovery hope. The one I really went to town on. And once again it’s disappointed me.
The shares plunged 12.7% yesterday after new chief executive Dave Lewis cut the dividend and lowered guidance following tough US trading. They fell again today and are down 45% over five years.
I’m worried about the impact of weight loss drugs and changing drinking habits. But Diageo still owns a brilliant portfolio of global brands and generates plenty of cash. When consumers feel richer, I suspect they’ll be thirsty again. I won’t be selling. I’m even tempted to buy more, but averaging down on Diageo is a habit I need to quit.
So I’ll hold all three. I’m pretty confident about Diageo, still, but the other two are complete punts. Investors hunting for top FTSE stocks probably shouldn’t start here.
