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Good support around 1800p - on a red day, OCDO is holding well.
Don't forget Ocado's other business dealings and the ease in which the companies robotic tech can be transferred to other sectors.
All year round Vertical farming is particularly interesting and could transform UK food production in an industry worth billions of pounds a year.
All we can do is enjoy the here and now, I'm satisfied the direction we're going shows value exists over £18
which gives us some headroom for the future.
Fair enough pursestrings.
Meanwhile the share price is pushing bigger as the market sees the current opportunities. Revenue streams from Groupe Casino and Sobeys and Kroger are currently flowing. Kroger obviously want a lot more than 20cfcs from Ocado. Ocado retail capacity now ramping up greatly at a crucial time. Recent bond refinancing allowed Ocado to borrow an extra £200m at lower than currently available rates.
Massive potential for Ocado to gain new online grocery partners. Also massive opportunity to gain more customers outside of online grocery...
The medium term share price will be governed by financing issues. I would expect next year the company will need to go to the market for support. I don’t think the revenue streams from the current Overseas contracts will be be in place for a least a couple of years. In 2024/5 there is also the overhang of the 600 mil bond maturity/ conversion which is projected to be £17 a share. Therefore I cannot see any opportunity for gain apart from short term swings. So £15-£17 seems reasonable for the next 4-5 years.
No massive reaction this morning and that in itself is proof their views have been overlooked
You find often that brokers often dig their heels in and defend their points of view rather than admit their previous price targets were out of touch.
Some are very positive on Ocado, some are not. That will always be the case..
Just seems weird to downgrade further when the target they initially set was clearly smashed out of the park.
I now have 3000 after today and won't be adding this lot to my Christmas card list in a hurry lol.
Credit Suisse price target was 1550p. They reduced it today to 1500p. Little change.
The market saw through their advice later in the day and snapped up the shares at the lower price.
The broker Shore Capital refused to even rate (meaning they believe the shares have little value) Ocado shares when they were floated in 2010 at 180p. To date they still refuse to rate the shares. Brokers need to give clear advice to their clients. Often they research and set out strong advice and stand by it year after year regardless.
The market is the true test. It can see value if it's there and will push the share price up accordingly...
I noticed the opening price and checked again just after dinner when the price bottomed out, I myself came in on the dip and bought another 1000 that came back strongly, I didn't see the C.S announcement until around an hour from closing, hence why I questioned the unrealistic target being banded around.
The CS analysis is to be expected. They have been negative for a long time towards Ocado. The market went with their advice today taking the share price down into the 1760's today before bouncing back to only be modestly down.
Since the Kroger announcement the Ocado share price has bounced £2+ reversing the Ocado share out of its recent slump. To myself and the market it is clear the Kroger announcement was very much out of the ordinary. I expected the 5 new CFCs but thought they'd be built near Krogers existing store base. CFC in the North East USA where Kroger have no stores) was a big surprise. Clearly showed that the current Florida CFC has impressed greatly. The Florida zoom store again was a big surprise. I wasn't sure Kroger would commit at all to Ocado zoom. The California announced new CFCs running same day delivery - also surprising.
Good news flowing currently. The market understands this. Buyers are coming in strongly on share price dips...
Best to all.
Cheers V.P
Hope this nonsensical advice isn't taken too seriously when the market opens, it could certainly undo all the recent stabilization we've been praying for,
Fingers crossed.
That's the daily end of day uncrossing trade Halma. It's a daily book balancing/accounting entry. Ignore that trade.
Couldn't help but notice that massive off book buy at 16:35pm
494,353 @ 1,797.50p.........someone's brave.
They've cut all 4 legs off the stool in one go with that valuation,
we'll just have to hope they don't add to much more misery during the pre opening session
Easy money for CS, Mods...downgrade, buy, profit.
....not too keen on OCDO (again)....another good kicking from
another cold shower from CS.....