Member Info for booboobooboo

SOLID results today , NAV 284P , T1R 14.2%

Whats not to like.

Agreed that news could add another 5-10p to the SP.

Ocado has 1 million customers waiting to join its online grocery service "CEO said UK sales of online groceries, which have doubled during the crisis, would double again in the next few years. “The world as we know it has changed. As a result of Covid-19 we have seen years of growth in the online grocery market condensed into a matter of months, and we won’t be going back."

https://www.theguardian.com/business/2020/jul/14/ocado-has-waiting-list-of-1-million-customers-wanting-to-sign-up

Nice reading thanks Neil.

Waitrose used to owe 25% of the whole of Ocado once.

"Rob Collins, the managing director of Waitrose, said he was confident that shoppers who use Ocado to buy Waitrose goods would migrate to Waitrose.com."

" analysts raised concerns that the 134-year-old high street retailer had overpaid for access to Ocado’s technology and delivery network."

https://www.theguardian.com/business/2019/feb/27/marks-and-spencer-agrees-750m-food-delivery-deal-with-ocado

One year later and its starting to look like M&S will be pouching Waitrose customers and a further 40% on top, while at the same time buying themselves a bargain .

Yesterday we saw the lowest SP close since 25th May which encouraged me to up my position here to around 100,000 .A sizeable amount particular considering I haven't visited a M&S store for many years.I like how they are leading the way regarding plastics and that in 2 years time when all their plastics become scheduled to be either perishable or recyclable that will present a fantastic opportunity for the company the to market the hell out of that story.

By that stage a lot of consumers will feel very uncomfortable at the thought of adding further non-recyclable plastics into the world and will be making the swap over to M&S . With more Ocado JV robotic distribution centres (4) being built ready to accommodate them, they will very quickly find themselves at full capacity.

I was also encouraged by news that since the Rainbow launch M&S have raised £33M to NHS charities which is another (coded) way of saying £100M a week in sales have been achieved in the Rainbow range alone.No wonder they aren't anticipating drawing down much on their loan facility .

Finally having visited a Next superstore last week I was counted in by someone using a click counter followed by another member of staff click counting me again on the way out .A Very different story here at M&S who are ahead of the curve yet again with there own counting app , put together in just 3 days suggesting to me they very much have the right IT team in place to take this company forward into the new digital age.

ps . I also see Norge Bank's confidence in adding 1% to their holding this week as a great endorsement and is another sign to me that others can also see M&S are heading in the right direction .

Only 2 months away from having M&S the family weekly shop delivered to your door.

"Whilst in most cases id expect to see a reduction in the sp of the company making an acquisition. I just didnt expect to see that just now as its only in talks."

I think it might have something to do with the rumour mill was thinking/hoping more along the lines of an acquisition the other way round.

Not a share for the grandchildren , this one.

https://www.bbc.co.uk/news/science-environment-52968716

Now imagine you are an investor considering splashing out on a new coal plant. Typically, you would expect it to operate for 30, even 40 years.
Do you really want to make that investment knowing that every passing year it is likely to spend more and more time sitting idle, at the whim of the weather forecast? Thought not.
And now add into your calculation the knowledge that the voice of the clean energy lobby is only going to grow in volume and force.
After all, coal is the biggest carbon emitter of all fuels, and it also fills our air with carcinogenic particles and toxic chemicals - none of which is currently priced into the cost of burning the stuff.

Never below £1,10 every again ....

Metro Bank had a pro forma CET1 ratio of 16.1% at 30 June 2019, that greatly exceeds its 10.6% minimum regulatory requirement. Its pro forma total capital ratio was 18.8% at the end of H1 2019. The bank is also highly liquid, reporting a liquidity coverage ratio of 163% at 30 June 2019.

Should MTRO come out the other side of this a £1 billion valuation would still be cheap.

Interestingly Milleniulium investments increased their short position from 1.3% to 1.9% than U turned back to zero a few days later.

For just 99p this is a great and much cheaper way to gain exposure to Ocado .Crazy cheap and for the moment anyway going at Poundland prices.

Easier, safer and from a M&S point of view saves a lot of CAPEX building 100s of superstores they now don't need to expose themselves to the UK family grocery market and OPEX in terms of unnecessary rent and rate costs.

The out of town supermarket strategy is a costly thing of the past I can see most of them becoming housing estates over time.

Then they have a lot too learn the new range is likely to be between £1.10 -£1.20

Exactly this is why I have swopped my BARC for RBS and will swop it back again when it swings the other way .

May soon become "Never in the 90p's Ever Again. "

Average broker valuations £1.30 - £1.75

Fact is we have bought 50% of Ocado Retail 6 months ago and since than sells have gone up 40% .Seeing as there isn't going to be a vaccination by September 1st to would be reasonable to assume consumers online weekly shopping habits will continue at that level and may even grow.

So not only have M&S entered the online grocer business they accidentally did so a few months before the sector experienced a 40% surge,making the £750M paid look very discounted .

Given that was posted 3 months ago before Covid 19 , MTR are 1.8p ATM , NAV 2.3P and GGP SP 9P I wasn't far wrong .

M&S have proved their critics wrong .