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PI,
The information I have provided on CFCs is factual. I have been posting my bearish findings re Ocado on this board for 2 years since I uncovered flaws within the company via my research. Posting on the board is useful as I can then discuss the issues with other informed posters. So much dross posted on here without any thought/research behind it but there's also some enlightened posters who it's useful to engage with to sharpen my outlook/findings re the company.
The same flaws I have previously outlined are still there for informed investors to see.
Short currently is an obvious position to take re this company, as it has been over the last 2 years.
HSBC broker rating only underlines the reason why OCDO should move their listing Stateside. It's coming, along with a fair valuation for the GROUP (that is Technology and Retail).
Retail results in 2 days and despite the upbeat general comments on market share etc. I suspect they won't excite. That downgrade comes 'right on cue' as you say Giovanni. With the SP currently being fragile and my belief from a technical perspective that we'll see 350 or below.. I've closed out the rest of my position at b/e. Good luck everyone holding
HSBC right on cue with a downgrade to 285 today after recent rise to resistance line
Profits were taken at 380 yesterday. This will be shorter back down to 345 level.
Sounds like someone who’s just sold his shares. Everyone has their own strategies, personally I think at these levels you can’t go wrong with a LTH.
The train is arriving soon and once it leaves there’s no getting back on it.
Disagree. Mad to short at these levels.
DCB as expected. Short when there are spikes as sp uptrend is very weak. Accum only at sub 330p. Shorters paradise. Short if reach 391 level again. 400p is now a major struggle. Make more by shorting this stock. Not seeing and surge in buying indicating down trend to 350p expected. Badly run company by CEO Steiner , keep bleeding money profusely for 20+ years. Cash flow is a major issue soon.
VP....ramping means providing dishonest advice in order to ramp a share and benefit financially. I support PI's with news and information.
In conjunction you cannot move the SP of a FTSE100 with information on here...you are a fool if you think otherwise....your disingenuous information on CFC's has zero impact on the SP.
Good luck with your short....you are going to need it......I do not believe a word you relay regarding your price action......strange you are continually repeating the same nonsense on a daily basis if you are doing sooooo welll!
Look forward to hearing all about M&S and CFC's again and again as you get burnt further....it will be the key sign you are getting more desperate. Good Luck to PI's.
Shorters have alot of factors going against them if they're still hoping for more of a drop from this level. Could easily see all profits erased and pretty quickly.
Good luck VP, 2 sides to the coin. You've done well so far. I wouldn't say I'm gagging to see you continue to do well from here, but good work so far.
Had the short in place since £9.76 so no not feeling the heat. Took profits when it hit the low £5s but still have a short position in place. Never possible to time things perfectly but happy with how things have gone. Small blips upwards for Ocado but I still believe the downwards retracement will continue over time.
PI, you just repeat the same rampings. I'll stay around, always interested in the value Ocado gives.
Direct link: https://www.ocadogroup.com/our-business/osp-partners/
Good summary of Ocado's Global reach in link below.
https://twitter.com/OcadoGroup/status/1749378509368148298/photo/1
VP....hows your short doing??? Feeling the heat???
True to form you are on constant repeat regarding M&S and CFC's....have you any NEW negative news for us???
Please stay on here as the SP re-rates...... Sainsburys results Thursday......and AGM Monday (hopefully some hot news on a feasibility study on the merits of transitioning to the States)
Then near team Kroger update early May and M&S late May. GLA.
You did the right thing RP, that's all that matters.
@Stupmy - I honestly can't remember who actually posted the advise.
BUT I asked where we were heading after I bought thinking is was recovering the last time it rose and then it started falling again and someone advised - That if this falls below £6 its going WAY lower'.
That is what made me take a small loss and sell :)
So who ever it was THANK YOU.
You got the break
Marks are disputing the facts of the over expansion sign off.
Dispute ongoing, law courts possible.
The decisions were taken by the board of Ocado Retail which is split 50/50 between the 2 companies.
It is a joint decision making process
The overcapacity came about because of mismanagement by Ocado re the reaction to the COVID situation.
Marks and a Spencer's rightly are disputing their payment owed to Ocado re this issue.
"Incidentally, if there is serious talk of shifting to Nasdaq, then surely shorts would have to reduce risk. "
That is a very interesting point Sangi, I can't quickly find the answer. When companies merge, it seems that the process is straighforward and might involve a small fee, but the shorts stay in place. But for an exchange move I'm not finding anything clear. If the shorts had to be covered, then it would provide an opportunity for arbitrage that would be too easy I suspect. I assume that there is a process in place that prevents an easy opportunity for us as SH's to benefit, but if anyone knows the detail, I'd be very interested.
https://www.reddit.com/r/fidelityinvestments/comments/pnjm0e/what_is_the_merger_process_for_short_positions/
And the overcapacity came about because of the reaction to the COVID situation.
After a dip online share of grocery has started trending up again. As an idea of how high it could go it's at over 25% in South Korea.
The over capacity at ocado retail isn't going to last long at the rate sales are increasing. There also needs to be some over capacity otherwise how would accept new orders?
From this https://www.lse.co.uk/rns/OCDO/statement-regarding-new-international-partnership-97stcqfzrnsh25g.html
Ocado Group plc ("Ocado") has signed a partnership agreement with The Kroger Co. ("Kroger") under which Ocado's technology will be used in the US exclusively by Kroger for grocery and other food distribution related activities.
Ocado and Kroger have agreed to the following:
● Ocado believes Kroger to be the grocer best-positioned to win in US grocery and will discontinue discussions with other US-based retailers
● Kroger agrees to pay monthly exclusivity and consultancy fees which will offset in part the total fees that are expected to be agreed between the two parties
● An overall services agreement will be negotiated to provide for the drawdown of multiple CFCs across the US, on the basis of standard Ocado OSP terms
● Kroger will subscribe for up to 33,146,200 new ordinary shares in the capital of Ocado, equivalent to 5% of the existing issued share capital of Ocado, at a value of £183m.
Kroger and Ocado are already working to identify the first three sites in 2018 for development of new, automated warehouse facilities in the US, and will identify up to a total of 20 over the first three years of the agreement. In the event of a failure to commit to the target capacity, Kroger will pay compensation to Ocado.
In the longer term, Kroger will retain exclusivity in the US conditional on it meeting market share targets or ordering an agreed number of CFCs per annum.