The Share Centre: Investors to hold on Carphone Warehouse

Graham Spooner, Investment Adviser at The Share Centre comments on what today's annual results from the Carphone Warehouse mean for investors: "This morning we saw shares in Carphone Warehouse fall around 9% following the announcement of its full-year results and a ‘very cautious' outlook.

"Until recently we listed Carphone Warehouse as a buy for investors, given its successful diversification from mobile phone seller into all round telecoms package provider. However, given the present economic climate, housing downturn and rising inflation levels putting pressure on consumers, we now feel the company is no more than a hold for investors who remain faithful to the management's impressive track record. Carphone Warehouse has already reported that it has seen an impact on the sales of its fixed line broadband business.

"We are also concerned about the company's position in the long term. If its share price continues to fall we could well see Carphone Warehouse drop out of the FTSE100 sooner rather than later."