Member Info for chilting

The new mine will be producing coking coal for the steel industry - I am not sure that they have a working alternative at the moment but new green hydrogen technology is being developed that may give an alternative although it may not be financially viable.

londoner
This is the tech bit

https://www.youtube.com/watch?v=bY0nNPT75xY

londoner
This explains what they do

https://www.ocadogroup.com/our-solutions/what-is-osp

Tom
It would be better to post your comments on the Ocado board - we hear the same comments all the time - but the performance of the SP speaks for itself over the last couple of years. Also income is just starting to flow in from overseas customers.

londoner
Just 10% of Ocado's business in delivering groceries and that business is owned 50:50 with M&S.
The other 90% mainly consists of the roll out of Ocado Solutions internationally - they are selling their tech to other grocery retailers around the globe. The groceries are delivered from large warehouses and the groceries are picked by robots.

The staff get share bonuses as well, so they do benefit when the SP goes up - its all linked.

It looks like we have one of these occasions where the SP will drift down a bit after results and then in a week or so will recover and move up again .

The logic of Tesco shareholders holding the company accountable for the junk food it sells is beyond me - for many Tesco customers junk food is their weekly shopping basket.
If they don't like the poor quality of food the company sells, they should invest elsewhere.

https://www.lse.co.uk/news/MKS/shareholders-aim-to-force-tesco-to-cut-junk-food-sales-e9ljs14a8zs7y7f.html

I would just add that the OO could be in the form of an accelerated book build - that means the company issues an RNS after close with the offer and the whole process is complete before the market opens the following morning - investors have to be very quick of the mark to participate.

It would make perfect sense to have click and collect at M&S bricks and mortar - I guess at the moment the capacity isn't there, but as the pandemic recedes and more capacity comes on line that it will become a reality.
It would I think ensures that Ocado Retail retains and grows its market share.

It could be very beneficial to M&S - the bigger Ocado Retail becomes, the more high margin top end food they sell.
Also they wouldn't have to find the cash to purchase the other 50% and any costs of expansion could be shared.

Ocado Retail will become as big as it wants and will claim as much market share as it wants - with M&S and Morrisons funding the expansion it could become the main challenger to Tesco.

londoner
The $50m does represent around 17% of the market cap so it is significant at the moment but obviously if the SP doubled up it would be much less of an issue.

I do wonder if the other 50% of Ocado Retail hasn't already be penciled in for Morrisons.
It must be blindingly obvious to them that it would be a no brainer, especially as they have been working with Ocado so closely.
They will have to pay top price though.
M&S and Morrisons would be totally complimentary.

Its just simply that the lower the offer price the more shares that will need to be issued to cover the $50m - hence more dilution for existing share holders..

Quite a few possibles, but nothing definite.

Figures crossed it is and that the discount is minimal - so it needs to be as late as possible..

But its around 20% of the market cap at the moment - that is the issue.

I think that all the cash could be raised by an accelerated book build - any open offer can be conducted by this method as far as I am aware. Any shortfall would then be placed at a later date by JP Morgan in cooperation with AB and his offer to loan cash to cover the shortfall.

hitman
I think the most likely way that they will do the open offer is via an accelerated book build.

For anyone not familiar with that, the offer is made overnight between the time the market closes and is concluded before the market opens, sometimes small investors do get a chance to take part but you get no notice and you have to be very quick.

The impact on the SP depends on what level the offer is priced at, if the company is in a strong position and there is good demand for the new shares then the effect will be marginal because the offer price will be higher, with AB's commitment hopefully that would be the case.

No doubt romaron will correct me if I am wrong.

Did anyone notice that there is another CFC planned for the UK in H1 2022 - not sure if that had been reported before?

What I found most interesting was one reason for the new acquisitions of the two robotic companies.
The idea is to reduce picking times from the current average of 15 mins per order by enabling robots to pick even more products, some of the products that are currently picked by hand, efficiently. Even a few minutes saved makes a massive difference to costs and in an industry where margins are tight that could make all the difference.