Member Info for chilting

Friday always seems to be the day when the SP puts on the biggest gains - nice to see!!!

M&S own 50% of Ocado Retail.
Ocado Retail is Ocado's UK online supermarket - ocado.com

Ocado.com only make up around 10-20% of the Ocado Group - the rest of the Ocado Group is the international tech company that is currently rolling out Ocado Solutions with partners around the world - notable Kroger in the US.

Oil companies will always want more Kraken, but economies thrive on cheaper oil and politicians will also try and keep the price down.

So its all about compromise.

In the longer term though as oil becomes less important for energy production - particularly for land transport - and more about industrial use, then I think the price of Brent will rise substantially, especially with supply constrained.

It should be obvious that Covid has slowed up the procurement process, therefore, without the news flow the SP remains in the doldrums.

Just take heart from the recent update, it provides an excellent snapshot of EQT and what can be expected in the short-mid term.

The best news for EQT would be business partnerships with bigger companies and for them to take equity in EQT - the link up with Wood looks encouraging.

Trading update due for Ocado Retail next Tuesday 14th September - high expectations for this one - with the added capacity Ocado Retail have probably increased sales significantly since the first lockdown and a lot of the growth is very recent.

Andover CFC has reopened, a new CFC has opened at Purfleet and a mini CFC in Bristol - they are well on the way to lifting capacity by 50%. Our local spoke at Crawley has more vans on the road and drivers.

i think range bound between $65 and $75 in 2022-3 would also be a very good outcome.

A spike in Brent over $80 would simply damage the economic recovery and could ultimately push Brent down well below $65.

Above all Enquest needs long term stability and Brent around the current level gives that stability - the SP would continue to slowly rise without volatility and become more attractive to investors.

Always good news when the CFO buys shares - especially good junk.

https://www.londonstockexchange.com/news-article/TRX/director-pdmr-shareholding/15129857

The HGV driver issue is affecting Ocado Retail's competitors with their multiple outlets that need servicing by HGV's much more than Ocado.

Ocado's availability is very good at the moment with few subs and when there are supplier shortages these simply reduce customer choice when they order, so there is generally no loss in sales.

Obviously increased labour charges will be incurred to pay HGV drivers but with the value of the cargo they carry this isn't a major issue for grocery retailers.

Locally here in Sussex Ocado Retail are still recruiting drivers and adding extra vans to their fleet operating from the Crawley spoke and business is booming - a driver told me that they were busier at Crawley now than during the lockdown.

Even the Ocado Retail results should give the SP a much needed lift, especially as they are likely to push M&S up still higher - positive sentiment flowing from M&S to Ocado is rather novel but is certainly the way of things at the moment - M&S are flying!

I think that a takeover approach is far less likely now - the offer price would need to be too spicy. The potential bidders have missed their chance.

Takeover targets are much more likely to be lame ducks like Sainsburys.

And remember Morrisons was primed for takeover.

I guess so Kraken especially as Brent looks good - you are a devil for punishment!

spindok
Yes, its a long shot but with OPEC+ playing along it could be possible, especially with renewables taking an increasing share of the energy market.

Also todays big players in oil are likely to emerge as big players in renewables, so to make big profits in both oil and renewables would be very appealing.

The damage to Port Fourchon will take the longest to rectify - many buildings have been destroyed.

This is the point where Ida made landfall and is the main servicing port for US Gulf oil production.

https://eu.houmatoday.com/story/news/2021/09/04/port-fourchon-recovering-after-hurricane-ida-gulf-mexico-oilfield/5715711001/

Scientists say that a global reduction of 3% a year is needed every year until 2050 in crude production to reverse climate change - article link below.

Taken face value this is devastating news for the oil industry in general, but for Enquest is could actually be good news. Supressing demand by controlling supply would undoubtedly keep the price of oil high. Therefore, even with lower production Enquest could make more revenue.

Also with reserves at Bressay and Bentley linked to Kraken, production could continue for many years to satisfy this falling demand even if oil was just trickling out at todays levels.

Also the rise in renewable energy could be good news as it takes market share in the energy market and pushes oil away from energy use and more towards industrial uses where the crude price could be many multiples what it is today.

There you are - I have just made a case for holding Enquest long.

https://www.bbc.co.uk/news/science-environment-58494391

It must be said that the M&S PR machine is doing a fantastic job promoting the company.

I am quite sure that their positivity and the excellent advertising is improving sentiment all the time and is helping significantly to drive the SP.

mrc
As I said I adapt my strategy as I go along - trading looked the best option at the time but now Brent looks like giving good stability holding long is much better, in the eventual hope that Enquest will come good.

The thing with Enquest is that if the tide does turn dramatically there is the possibility of a good capital gain from these dismally low levels - rather like a hot AIM stock - so even a relatively low investment is worthwhile.

Excellent - could be Ecover?

HMHn
I adapt my strategy as I go along, but basically I hold very long and top slice for profit, holding about 10 stocks in a wide range of companies from AIM to FTSE100 - I don't risk much on the small caps, that includes Enquest. Although the best returns are on the small caps when they take off ITX for example. My biggest holdings are ITX and OCDO both are well off their best at the moment.

Hello HMHn
OK, I will come clean - I have made money on almost everything I have invested in over the years - except Enquest - hydrogen stock CWR has been good for me - currently up over 700% and has been 1200% up - I have top sliced so many times I have lost count.

So, before the update I thought that at last Enquest was on the cusp of a breakthrough and with Brent playing ball we could all expect a good return but I was wrong again - very frustrating!

Still I will persevere.

It would be great to be able to describe Enquest as a strong buy at the moment and as a holder who would obviously like to see the SP rise that would be the logical thing to do.

So although sentiment is shot and the SP has fallen bellow the rising trend line and we haven't found the bottom yet after the update - Enquest is undoubtable a strong buy!