From a fundamental viewpoint, Home Retail Group seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.15 times its revenues.
This valuation is only 11.45 and 10.54 times the two next years earnings.

After several weeks of a downward movement, the stock is coming back close to an important daily support (GBp 131.3). On this level, a consolidation phase is forming corresponding to a probable end of the bearish movement. We should use this level to open a long trade on the stock with the GBp 140 as first goal (20-day moving average) and then the GBp 148.8 (first resistance).
A stop loss order can be placed under the support currently tested at GBp 129.8.