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Yes AllAtsea it is a risky stock. Management team have really proved themselves over the years. On any given day this stock could go up/down 5% with ease. There will be a time when the future is fully priced in. Personally I don't think we are there yet...
It's a riskier play than many stocks but in my opinion if you want a degree of risk in your portfolio amongst the duller options then there is good reason to pick OCDO e.g. Steiner has been raising capital at a time of increased demand for OCDO's services and also bought a stake in what has become a leader in robot manufacturing. Generally the future is going OCDo's way.
Barclays downgraded OCDO to underweight today. Price down just a touch. Barclays have never been a believer.
700% share growth in 4 years, says all you need to know. An extraordinarily success so far...
Seen these type of ‘equities’ too often over the last 40 years! Only 10 years of no EPS, no EBIT, no dividend, and borrow more and more from shareholders, where does the money go? Only 1.7 % of UK market share after 10 years and many broken relationships! They are up to their eye balls in debt, and promises. DYOR! Those are the facts, not a dime In profit. Not a penny back to shareholders! Nothing!
Fair enough, you're not convinced. We have had so many similar posts over the years on here. Those that have correctly foreseen the future have nabbed a 700% return on their investment til now. Those that went against it lost everything. Was once the most shorted stock on the FTSE. Nothing like that now.
Absolute rubbish Value playing, EPS? 10 years for what?
Neil, it's irrelevant. It's the future that is important. You don't seem to understand.
Profit at Ocado retail is ploughed back into its technology so that the company keeps at the forefront of the exponentially growing online grocery sector. If you judge by traditional metrics Ocado is hard to understand. If you realise the enormous potential profits further down the line, 5 years+, then all becomes clear. Similar to Amazon. Small profits for a long time at the start but a huge valuation as investors could see a huge profit down the way and were willing to back them foregoing dividends in the hope of large share growth.
Ocado's 4 year return is +700% versus the more traditional high street returns of MKS, -70% over 4 years. It has outpaced MKS by 8% in the last month alone....
So Value player, Tell me how much cash Ocado have made in EBIT since it’s inception or if you like the last 3 financial years? EBIT.
Not a surprise. That capital raise was a big buy signal for this share. A company at the top of its game looking to further assert its market leading position when demand is rocket high. Very astute. Further market outperformance lie in the weeks/months ahead.
Yes, amazing when you take into account that there was a capital raise in June.
looking good for 22+
It's fair to say that Ocado is riskier than most stocks I hold. It's a risk versus reward thing. Modest risk modest reward.
Ocado retail division does make a profit. That profit is then reinvested into the company's technology so that it remains ahead of the competition. Crucial that Ocado remains best in class as this attracts new customers.
Over the last 4 years OCDO has delivered a 700% return to investors whereas MKS has delivered -70%. I would much rather Ocado don't pay a dividend as they are extremely good at investing it shrewdly within their business to maximize shareholder return.
Welcome any more insightful comments on why Ocado isn't a good investment.
The comparison between MKS and OCDO was first raised on this board as investments on 6th July. OCDO was then 2000p, MKS, 100p, currently OCDO is returning around 9% more than MKS.
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Neil you clearly don't grasp the situation, Ocado have already got customers building sites globally & willingly tied in to paying for their tech for many years to come. This tech company is already 'making it' ! The customers aren't smallfry either... They're not stupid.
Neil, you really don't understand how the stock market works do you.
I'd much rather a company invest and create capital growth than pay a dividend.
"Very few tech companies make it". Well, apart from the 5 largest companies in the world.
Absolute nonsense Value playing, this company has not made a penny in profit and has no dividend!! It’s SP is bewildering. Considering the amount of crap Companies like M&S get (who actually make money) from the markets I’m surprised Ocado is still around, and yet stays afloat on the back of companies such as M&S who gives them buckets of hard earned cash and shareholders willing to give them 1B. If they don’t make profit this year they will be out. No doubt they will sell the other 50% of Ocado retail to M&S first. Very few tech companies make it.
Archie Norman has a huge job on his plate trying to reverse MKS's fortunes after many years of decline. Crucial time for MKS currently he'll have no time to expand to dual roles. Stuart Rose chaired OCDO through many years of huge growth. Will be hard shoes to fill, potential candidates will be very attracted to the lucrative role and will want to be part of the world's most advanced online grocery solution providers.
Analysts, apart from a few exceptions, have been forecasting OCDO's share price incorrectly for many years. Thankfully I and many others on this board have ignored them and gone on to receive exceptional returns over the last 4 years.
The comparison between MKS and OCDO was first raised on this board as investments on 6th July. OCDO was then 2000p, MKS, 100p, Currently OCDO is returning around 8% more than MKS. I see this outperformance continuing as OCDO is better placed to deal with the coronovirus resurgence than MKS. OCDO currently are in prime position to capitalise on the huge rise worldwide in online grocery shopping. Their solutions serve partners with a way to turn their current margin loss on online delivery into margin gain. This is very compelling as Amazon's competition lurks in the shadows.
Let's see how this plays out...
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God, please no....Norman is just a well connected figurehead with zero ideas who scored some early career points running ASDA and selling cheap nasty food that anyone could have done.
He was on the board for Orange and knew F all about mobile phone industry. I'm sure he will take all the credit when MKS makes a comeback, but it won't be anything to do with him.
Meanwhile, I have to disagree with broker recommends. The only accurate ones have been Berenberg and Peel Hunt...the others have got a clue.
Could it be another M&S exec to chair Ocado group? Archie Norman at M&S is the chair, could he do a dual role in Ocado?