Member Info for chilting

aandi
Its not just about the finances, the way that the share trades also makes a big difference.

At the moment EQT is a traders share, hence the volatility and predictable range - breaking out is the problem.

The liquidity of the stock needs to reduce with more shares going into sticky hands - at the moment after the latest equity raise the opposite seems to be happening.

Patience will eventually be rewarded but the timescale is anyone guess.

Now the real reason for the rise - speculation that M&S want to buy the other 50% of Ocado Retail.

Valueplay
Its interesting to speculate but we have no answers at the moment, although the reporter who wrote the story certainly thought the purchase was Ocado related.

Its considerably larger than a Zoom site and is very likely the reason for todays rise in the SP - Kroger are hot on Ocado!!!

"Kroger Co. has purchased a huge distribution center adjacent to its Ocado customer fulfillment center in Monroe.

Downtown-based Kroger (NYSE: KR), through its Fred Meyer Stores Inc. subsidiary, paid $44.6 million Oct. 15 to Prologis Logistics Services Inc., according to Butler County real estate records.

The 755,000-square-foot distribution center on 62 acres at 3401 Salzman Road is known as the Monroe Commerce Center. It can be expanded by another 215,000 square feet. Real estate firm Jones Lang LaSalle had been marketing the property, which it listed as an e-commerce distribution center.

A Kroger spokeswoman declined to comment on its planned use, saying, “We don’t have anything to share at this time.”

The distribution center is twice as big as Kroger’s new Ocado customer fulfillment center and sits just northeast of that facility. That automated warehouse and distribution operated along with British only grocery retailer Ocaco opened in March in Monroe. That $55 million facility covers 375,000 square feet and employs nearly 400. It’s the first of more than a dozen Kroger expects to open around the country.

Kroger is the nation’s largest operator of traditional supermarkets, with 2,742 stores in 35 states.

Fred Meyer is Kroger’s northwest U.S. subsidiary. It’s based in Portland and has 132 stores in Washington, Oregon, Idaho and Alaska. But Kroger lists Fred Meyer’s address as being at the company’s downtown Cincinnati headquarters.

Prologis originally built the enormous $33 million distribution center in 2019 for Bed Bath & Beyond. It received a tax abatement on real property investment from the city of Monroe in 2018. The building was to have been an e-commerce distribution center for Bed Bath & Beyond. But it put those plans on hold and later used the facility to store excess products in 2020, when Covid caused many of its retail stores to close. The building never housed more than a tiny fraction of the 900 employees Bed Bath & Beyond had originally planned for the building. It was put up for sale less than a year ago.

Kroger is the largest employer in Greater Cincinnati, with 18,000 local employees, according to Courier research."

This looks interesting...

https://www.bizjournals.com/cincinnati/news/2021/11/18/kroger-pays-45-million-for-butler-county-property.html

Yes, bringing in other clothing brands and buying Jaeger seems to have been the catalyst for this change in direction.

I think this is just the start, there are a multitude of ways to increase turnover using third parties.

M&S is now performing like a virile growth company rather than the stuffy old lady of the High Street - bring it on!!!

After todays update with Enquest missing the lower end of production guidance the reasons for investing here just got a whole load tougher.

Its very difficult to justify other than as a long term punt - even the traders may find their investment to be rather lack luster. So much depends on Brent staying well above the long term average and the fragile production holding up.

The best bet for long term holders may be to switch to a growth or recovery stock to recover any losses, but that's just my opinion, not a recommendation.

I have made the decision not to invest here again, after I sold out first thing this morning, so this will be my last post on this board. Best of luck to ALL holders.

I think you owe KO an apology for that remark romaron - he has contributed enormously to this board for many years.

You can say what you like to me, its water of a ducks back, but please show some respect for other posters.

Why the personal attacks? - pathetic!

Reporting material outages would cause volatility to the SP, so that probably wouldn't be helpful, however missing the lower end of guidance is very serious and should warrant an RNS.

In mitigation to Enquest, they probably only realised that they would miss guidance when Kraken had problems over the last few weeks and the Trading Update is slightly earlier than usual - I think most of us were expecting it next week?
So maybe they shifted it a week earlier than originally planned.

Ammu
Yes it is, and is certainly a failure, but wasn't expecting such dire production numbers - totally caught out.

I will wait until I see life in ENQ before I buy back in - like I did in April - it could just flatline.

Problem is now that the market just sees Enquest as a company with larger debts and production problems.

Looking at Brent with 55k production may well be achievable, but it has to be delivered before SP will respond.

SP could remain flat below 20p for months.

Hell no - but they give guidance, especially when the SP fall sharply.

Ammu
In these situations the mood on the boards is generally a reflection of SP performance - if it is combative and bullish to buy back in, we usually see a good bounce - here today it is just flat with just a few hardy souls committing their cash.

Best to wait.

Ammu
I was in at 16.49p at the end of April and sold this morning at 20.40p.

I am still undecided about buying back in - but convicted there could be more downside - not even a dead cat bounce yet.

A bit premature to expect a bounce yet - not even sure that we will see one.

Market is totally p*ssed off with ENQ - oil companies are harshly treated for missing production targets - that's why oil companies are usually so cautious and give a wide range.

Also expect harsh treatment from brokers, especially from Barclays.

No harm in waiting to let the dust settle - buying decisions can wait.

To a large well funded operator Kraken with Bressay and Bentley would be a very tempting target for a takeover.

Brilliant idea - especially the sandwiches.

Options now -
1, Carry on with limited ability to pay down debt as production falls with Kraken past its peak.
2, Invest in new assets - develop Bressay and Bentley for example - involves equity raise.
3, Sell to highest bidder or takeover - most likely.

onedb
GE is the bright spot but it did require an equity raise from shareholders.
The production hits this year have certainly been unlucky, but the net result is that debt hasn't been reduced.

Covid has been very damaging to Enquest - last years fall in Brent and I guess the outages this year and the failure to sort them out quickly haven't been helped by the fall out from pandemic.

So, it becomes an assessment now if Enquest can pick up from where it left off in February 2019 - it did seem on course to do that until the September update, but it does seem unlikely now with Kraken past peak production.