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What a complete nutcase! Sad lives these people live, conceptually challenged, no knowledge of retail apart from home deliveries. Just nonsense. Get a life.
Nothing frightening about another positive day for Ocado. Spreading false information about Ocado and Marks and Spencer on these boards is very disturbing though.
https://www.morningstar.co.uk/uk/news/AN_1600332045282493900/uk-broker-ratings-summary-compass-gets-upgrade-while-informa-gets-cut.aspx
A few hours ago New SP target for Ocado/frightening!
I don’t think people quite understand the store numbers and the concession relationship-financially. If they can’t be bothered to read annual reports that’s their issue, I can’t be asked with the naivety.
Costa77,
Good to hear you agree with most of my points. Thanks for your elaborations. Interesting.
Hi valueplay,
Most of your statement is correct, however would pick you up on store estate numbers. Whilst there are 1400 sites, M&S is only liable for around 650 with the costs associated with them. The rest are all franchise. Whilst lack of travellers will have an impact on those stores, they won't be a cash drain on M&s, just will dampen profit slightly. But as they only account for around 8m a week, the offset from Ocado is picking up that slack.
M&s digital presence now if on both C&H and food, so further lockdown can be mitigated more than at start of this. (Also M&S did Xmas levels on food in first couple of weeks and has continued to trade up on year in its wholly owned sites)
The rest of storecestate us rapidly transforming and would imagine that Clothing stores will be reduced from c300 to c150 in next 5 years. This is still long term hold, but sub £1 a share was bargain basement price
And I said PUSH OFF, do your own research!
Aimigo asked for my opinion which is why I offered it.
You may not agree with my opinion but I do not peddle false information around. We're still waiting for the substantiation to your statement Neil.. Unless you agree it's false?
Value push off, get back to to your board, no body interested in your uniformed opinions here.
Cheapsharesboy,
Your misogynistic posting has no place on this board or anywhere else.
Neil,
You've had numerous opportunities but still avoid supplying any back up material to your much discussed false statement of the below:
"Plus M&S have layered a 5% prem on food at Ocado versus store pricing"
Aimigo,
It's an interesting point. As you've asked for it here is my opinion. I agree with the UBS analysts. Here's Dannyreds used quote below
"Indeed, UBS analysts clarified that the Ocado Retail JV makes up less than 10% of its valuation."
The key there is less. Ocado's market cap is £19.76bill. I would value each half of the Ocado retail JV at roughly £1.3/4 bill. MKS has a market cap of £2.19 bill. Huge issues with the non JV side of MKS I see are ongoing increasing local lockdowns, possible national lockdown. No new furlough scheme. Christmas predicted to be a very poor one for stores. MKS's huge 1,400 store network very prone to loss of footfall from the huge permanent work from home trend and ongoing huge shift to online. There will be very large costs incurred in shaping the store network to suit a post covid world. Clothing and homewares continually weak and facing very tough competition.
I see many better investment cases than MKS currently. Ocado has returned 30%+ over the last 2 months versus MKS's 12%
Yes, I and the market value Ocado solutions currently at £18billion+. I am still invested as I believe this value will increase.
I would love to see M&S merge with Next and sort out the non-food in a more direct and strategic manner, fast and furious. I’m sure they could work out something favourable with Next. I’d like to see the Directors buy some shares too.
Good to see the volume back up in the US, and SP moving up.
I like the assertion you are making Aimigo. However the SP you are comparing M&S market cap against is arguably overpriced and has not made any EBIT in its 20 year history, however most equities are driven on sentiment of what they could do and as such volatile.
Fair to say the market has had its hands burnt under Marc Bolland and anyone can see how difficult it’s been to get traction moving on the turnaround. It’s going to take more than one swallow to convince the market, I predict M&S will have an improved cash flow, and a good outlook for the rest of this year, together with an updated forecast for 2021 when they report HY 4 Nov’20. Patience is required and news in a positive direction.
Store conversions and closures has progressed faster than planned which has been driven by covid.
Stock turn on clothing has vastly improved, and food is now 70% of trade!!
Valueplay is the most boring poster.
Same ol staff from the woman with nothing to back it up.
Zzzz
Valueplay you're clearly invested in Ocado and must see value in their share price yet you constantly put mks down. Looking like the Marks partnership is going to be a massive success and is giving Ocado a big boost.
Ocado mcap is currently just under £20billion and their main revenue is still currently Ocado retail. Out of interest Valueplay like Dannyred mentioned what % of Ocado's mcap would you put down as Ocado retail? Even as just 10% its worth mks current mcap so its madness you keep calling mks share price down. If it was only 10% that means you value Ocado solutions currently at £18billion?! Even you must agree MKS share price is now massively undervalued in comparison...
The day Ocado jumped 10% Bank of America raised their target price for Ocado by 50% and JP Morgan raised by 15%. Week before Citigroup doubled their price target
No recent raises of this kind yet for MKS. Many recent ratings for MKS have been broker price reductions
Analysts are building in covid worst scenario, it needs an update on base assumptions through the trading updates- half year numbers are out for M&S 4 November, there are numerous analysts updates due shortly too
Was interesting that Ocado was deemed getting ahead of itself jumps 10% and Marks was a 4% gain , a more positive outlook on Marks overall should nudge the shares up and any broker upgrades can only help.
Broker consensus targets are often wrong. For Ocado there are 13 analysts averaging £16.99. Share price now £26.40.
It's interesting to look at the broker ratings but it certainly doesn't mean a share will certainly rise or fall.
Analysts score cards and valuations are never consistent dannyred. Their forward hedging you would think come from a given companies forecasts but they don’t in isolation, they all factor different weight for revenues and costs through to ebitda and factor in external weight-all different, which is why a consensus of forward expectations and worth should be used. M&S have 23 external analysts with a consensus of £130 per share.
I read a couple of months back a snippet where they were calculating the worth of the jv with Ocado and long story short came up with its about 25% of Ocados value either way m&s are undervalued was the outcome. Forward yesterday's ocado update and everything is positive except the piece I read on the proactive investor website that was a quote from a UBS analyst
"Indeed, UBS analysts clarified that the Ocado Retail JV makes up less than 10% of its valuation." Which at yesterday's Ocado valuation was £1.95b at 10% .Anyone else want to pick a figure out the sky for the jv worth