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"Be interesting if there appears a TR-1 with a new investor 3%+ holding out of it all"
Hey Poker - Generation Investment Management LLP appear to have increased their holding to over 5pct, - now can you tell me what the lottery numbers are for the next draw please
Carrington
what Ocado are doing in the background and what shorters are doing to the share price..are two different things IMO
Been sold down and shorted and suffering from churn too....same shares bought and sold lower ....
The daily volumes are actually quite low ..... a relatively small number of shares doing a proportionally large amount of damage......
Be interesting if there appears a TR-1 with a new investor 3%+ holding out of it all
Best of Luck
I have been buying these for the last few weeks and keep adding as they fall - I am taking a 3 year plus view as I do with all the shares I buy so not too concerned about day to day fluctuations - Looking at the current share price it is below what it was before most of the relevant retail contracts Ocado have were signed so I see the drop as overdone - I like the Ocado model and it is well protected re patents as Autostore found out - inflation continues to push up retail salaries and companies can only wear this for so long before something has to give - may take a while but I am prepared to wait
gla dyor etc
Walmart and Kroger are investing but their situation is becoming under great stress. I believe they will cutback in some areas to safeguard their core business.
Don't get me wrong, I am a great fan of Ocado. Their service is the most comprehensive, polite, on time, least substitutions etc of all grocery retailers. Key to the consumer though is that Ocado services can never be described as cheap. It's the cost save that consumers are flocking to under current extreme economic headwinds, wherever that may be.
valueplay
with respect..Target customers aren't going to warehouse retailers...Target revenue was up 4%...their problem is in their costs..like most retailers....and the inventory mix they have...too much stock of certain things not currently selling sufficiently...
Some of these overstocked products were forward bought during the pandemic when people were stuck at home....so less demand now ..spend moved to holidays and flights etc which weren't available obviously during the pandemic
Walmart and Target still doing well in terms of food..which is stronger than the non-food, at the moment ....both are pretty price competitive
Walmart announced a " 60% rise in capital expenditure to increase automation and strengthen its supply chain through projects such as massive high-tech distribution centres."
Walmart and Kruger are investing ...they aren't standing still in this situation
Walmart and Target have issued very disappointing recent results and they are very robust retailers. Key retail bellwethers. Consumers currently are cutting back and seeking out cheaper options across the board such as warehouse retailers..
Kohl´s are not doing well anyway....up for sale...not investing enough in their store offer.....consumer choose elsewhere.. not surprised to see their result....
Kohl's shares in the US have sunk 8% in premarket after their results released today. Contrast that to BJs wholesale results outlined by Pokerchips and an obvious conclusion is that consumers are tightening their belts and opting for cheaper warehouse retailers.
Not a good sign for Kroger/Ocado..
BJ’s Wholesale (BJ) – The warehouse retailer jumped 5.8% in the premarket after an upbeat earnings report. BJ’s beat estimates by 15 cents with adjusted quarterly earnings of 87 cents per share. Revenue and comparable-store sales were also better than expected.
valueplay
hi....The overall availability of warehouse space is very tight ...UK - 2% , US 4% ( lower on coast urban areas) ..and clearly other operators have invested and been catching up to what Amazon offers ..as competitors
Amazon have said they expect that they’ll be utilizing any spare capacity by the time Amazon Prime Day comes around in Q3 July , and then Christmas in Q4.” ..they clearly went into big,big expansion
yes..I think Kroger knows what they are doing....strong outfit...
https://www.wired.com/story/amazon-warehouse-sellers/
Both Asia producers and the Western customers both obviously want supply chains restored and predictability of orders secured again...
The big problem of course is still energy costs which is more political than a technical problem
Good to hear from you Valueplay , and that you are all good. I have not sold at all with Ocado (and am currently 67% down). I continue to buy (like I do with all my stocks) the same £ amount every month. I'm fortunate that I don't need to sell and I'll hold all of my stocks for at least 10+ years from now - So although it can be hard when we have dips like this for me it is just averaging down. GLA DYOR
Pokerchips,
Kroger are a very strong client. They own around 6% of the Ocado group and always talk in glowing terms re Ocado. However the new economic reality is severely adverse and deteriorating at a rapid rate. Amazon have said they are looking at reducing warehouse space. Entirely possible that Kroger may slow the pace of their Ocado cfc expansion. I believe that the cost of finance is going to lead to many grocers prioritising reducing costs, keeping prices low versus spending funds expanding online.
* we had ....
chilting
20 years ago I was a manager of a London store and we regularly had "incidents" ....one guy phoned the Police because he was in the queue too long.....another woman and guy had a fight in the queue over who was first.... one guy pulled a gun out ..which was incredible because he had helicopters and Police surrounding the place within 5-10 minutes !!!
The pressure in retail is nothing new .....
Economic reality will force retail stores to make cuts and its obvious that most of the cuts will have to be in staffing numbers.
There have been a couple of stories in the media over the last few weeks that indicate the pressure Tesco staff are under.
The first was a BBC reporter with a guide dog being ejected for a Tesco store not once but twice - harassed staff were to blame.
The second was an elderly customer who couldn't operate the self service till and would not wait 30 mins for service on the regular manned till.
I guess these incidents are just the tip of the iceberg and can only be good news for the switch to online.
Fund raising and inflation are the problems here. The build and running costs of these CFCs are high. Now the SP is much lower only means the dilution will be greater. It may well be that some of there builds get moth balled. The valuation is still high,exercise caution here.
Kroger is facing issues and making investment and expansion commitments....they are a strong client
" Kroger committed to investing $10 billion in diverse suppliers by 2030"
https://ir.kroger.com/CorporateProfile/press-releases/press-release/2022/Kroger-Announces-Second-Year-of-Go-Fresh--Local-Supplier-Accelerator/default.aspx
Dipped first thing by 2% but recovered almost immediately.....
the current inflation environment and supply chain problems are indeed a big issue....but.... the worse a problem..the quicker the resolution to solve it.... eg. strong resolve now to get the Ukraine wheat export problem sorted ...
They actually needed to clear the port backlog in the US and the China lockdown has assisted that....inventory in the US is actually strong at the moment as the US Q1 data showed
I actually believe that the need to automate warehouses is even more pressing now than it was 12-18 months ago..... the need to cut costs within the system are even more pressing ....and....investment is as pressing in a downturn as any other time ...simply because ...the field becomes even more competitive and the need to come out the other side stronger is of huge importance...
Retail stores need MORE staff...warehouses need LESS ...focus more on customer service and customer satisfaction
Kohls is up for sale and there was plenty of interest and it looks like an offer could emerge pretty soon.... possible consolidation within the sector with cost saving synergies to make the deal worthwhile ..possibly JCPenney
good news and bad news, S&P 500 lost another 100 points since close, good news is its holding support.
Lets see if we open down..