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City File: U-turn on Asda

Saturday 08 August 1992 18:02 EDT
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Archie Norman, the youthful new boss of Asda, receives a pat on the back from the brokers Panmure Gordon. Pointing out that shares in the supermarket group, now 25p, are their lowest for 14 years, Panmure reckons it is time to buy. Price cuts are boosting volumes and sales are apparently ahead of Asda's internal budget. However, the buy tip seems a little confusing. According to a rival publication, Panmure's food retailing analyst, Michael Bourke, was very down on the company only four weeks ago and warned of a possible dividend cut. The shares then were around current levels. Perhaps he was misquoted.

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