Ocado Share Chat (OCDO)

After which the market dumps again...

Can't see Kroger buying out Ocado or MKS.

More likely scenario Amazon/Uber/another US tech giant buys out Ocado.

Overall I believe a takeover unlikely currently. There are a host of companies who would love to own Ocado though.

If Kroger did takeover Ocado, they would also own the other 50% of Ocado Retail - they would have the UK grocery market on a plate - especially if they also brought M&S.

All idiots who follow the daily mail are going to be crucified by tomorrows close....if you are leveraged watch out and get out after the first blip up in the morning which will be approx were we are now...

the deal with Kroger is an exclusive deal for the US market .They had a good deal then and bought shares @ £8 circa . Hence a takeover is unlikely IMHO .M&S also had a very good deal but the world is in a different place now ...lucky M&S i should say

Kroger holds around 5% of Ocado. It is possible they'd consider a takeover but it would be hugely costly for them. I think less news from Ocado solutions is re making sure all partners are happy and ramping up their offerings. Also getting ready to onboard new partners who would be queuing up to join.

There haven't been any RNS releases re stake building. I think Ocado's share price rise is more to do with the huge growth worldwide of the online grocery market and the increased opportunities that gives the company.

Kroger owns 5% of OCDO

Kroger already hold shares in Ocado I think?
Maybe they would consider a takeover - perhaps that is why we haven't heard any news from Ocado Solutions recently?
Could the recent rise in the SP be because of takeover speculation?

It's a given that all Ocado solutions current international partners will be wanting to expand their relationship with Ocado as fast as possible. Sticking point is Ocado's capacity. The £1 bill recently fund raised will filter through to their operations soon.

New partners should not be far off and further diversification outside grocery on the horizon. Ocado is firmly in a market sweet spot and should continue to appreciate in value over the winter. Ocado's future will be fully priced into the share price further down the line. I do not see we are there yet though.

This article CNBC gives a good summary of where Kroger is at the moment regarding e-commerce and it reveals why Ocado Solutions are so vital to their future.

In summary - Kroger are the largest supermarket chain but they lag badly behind their two principal competitors, Walmart and Target when it comes to e-commerce - customer satisfaction is low for the service they currently offer - however, their e-commerce sales through the pandemic have grown 92%.

Without Ocado they would seem to be in a similar bad place that Sainsburys are in the UK - destined to loose market share.

The first CFC is due to go live early next year in the Cincinnati area - with more to follow - but what about the urban areas that won't be covered by the new CFC's, will Kroger be content to offer their current second class high labour services in these areas? - I think not.

Kroger are sitting on a mountain of cash - I am convinced that it is only a matter of time before they announce plans to build even more CFC's accelerating their plans for national coverage throughout the urban areas of the US.

https://www.cnbc.com/2020/06/18/kroger-stuns-with-92percent-e-commerce-gain-but-it-has-to-prove-its-not-a-coronavirus-blip.html

Walmart can't even manage to run ASDA successfully (they want to sell it!!!!) so I wouldn't worry about competition from them...and yes Amazon is around, we know that already and we are standing strong against their mediocre offerings.

More realistic to believe that talks underway to sell Ocado technology to Amazon for any purpose they so choose. And why then can't Ocado deliver say Morrisons food from Amazon warehouses.

I've been tempted to buy some of this for a long time now but the massive rise since the crash really concerns me. I love their selection of productions and innovation, but if the price rise is due to increased online shopping then I expect behemoths like Amazon or Walmart to focus on this area as well. Any news from them could seriously dent OCDO's technological advantage in this area.

only 3 companies in the FTSE in the green! OCADO is one of them!

Yes, it's going to be a long, hard winter. Ocado are well positioned to capitalize and grow in these market conditions.

With coronavirus fears dominating the news agenda today we are seeing the now familiar pattern with most stocks falling and Ocado marginally in the blue.

Sunday mail tip usually means a rise on the Monday Could pump the price up again another quid maybe

Interest rates set to be extremely low for 3 years(excellent as Ocado will need to raise further funds if more deals are struck). Multiple local lockdowns and now a very probable national lockdown incoming in the UK. Covid cases rising across Europe. Ocado retail is almost at the limit of its capacity but many issues are making the public/press/investors/grocers worldwide turn towards Ocado. The larger the online delivery worldwide market grows the larger the potential rewards for Ocado solutions. The need is now and Ocado solutions are at the top of their game with an industry leading profitable solution.

Further rises likely if market conditions are calm. It's been a while since Ocado raised the £1 bill financing. Multiple lucrative options must be on their table currently.

good update sharetalk, thanks ZAK you were spot on with prediction last time of 26, despite some pullback inbetween

lets see this time...35?

Daily Mail never a good tipster, usually the kiss of death

Zak reckons £35 is possible this autumn - bring it on!!!

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Thanks for the welcome! I intend to hold in Ocado and possibly buy a bit more. Got burnt on TTG but sold before it hit its current low. Very small time investor here with only £5k invested In 3 sets of shares but at a 14% return better than seeing it in a 0.01% interest account.

https://www.dailymail.co.uk/money/investing/article-8750567/MIDAS-SHARE-TIPS-Percy-Pig-deliver-Ocado.html

Cheers JepGambardella,

I have been wholly invested in Ocado for many years. Will continue to be but always reappraising Ocado's future and it's share price. It has recently raised £1bill and intends on using these finds to capitalise on its market leading position at this crucial juncture in the evolution of the online grocery market. There should be big new overseas deals around the corner.

Thanks Valueplay for your hearty reply. You make some very interesting and valid points, which are very much appreciated.

Yes, it seems to me Ocado has a very bright future ahead hence the current valuation. Importantly, Ocado seems to have a proprietary technology that is hard to replicate. I think this is what gives it that special edge and justifies it's valuation.

As tempting as it may be to sell, I would hold on to your Ocado shares and only top-slice if your holding starts to represent a too big a portion of your total portfolio . For example, if your Ocado shares begin to represent over 10% of your total portfolio you may want to top-slice any excess gains, yet you would still retain a chunky holding.