Member Info for chilting

A very welcome bounce back today!!!

Is Sharon White loosing the plot?

A case of trying to do a lot, being far to open with the PR and ultimately getting it all wrong.

Leading to damaging consequences when backtracking becomes necessary.

https://www.johnlewis.com/customer-services/prices-and-payment/never-knowingly-undersold

Short, sweet and positive.

https://www.londonstockexchange.com/news-article/BREE/trading-update/14688739

From todays report -

"NEXT was fortunate that its Online sales accounted for more than half of its turnover going into the pandemic, so we had the scale online to make up for some of the business we lost, and continue to lose, from our stores. Interestingly, sales Online have been significantly stronger since our stores reopened than they were before the pandemic struck. It appears that some lockdown habits have stuck, and we have been able to take advantage of this shift to Online."

From todays report -

"NEXT was fortunate that its Online sales accounted for more than half of its turnover going into the pandemic, so we had the scale online to make up for some of the business we lost, and continue to lose, from our stores. Interestingly, sales Online have been significantly stronger since our stores reopened than they were before the pandemic struck. It appears that some lockdown habits have stuck, and we have been able to take advantage of this shift to Online."

If Waitrose think that the online spend will be just 20% of sales, then that is good news for Ocado Retail - they will never keep up with demand.

Yes, John Lewis are basically in the same position as M&S but they don't have Ocado Retail anymore, as they expect 60% of their revenue to go online that leaves them very vulnerable and it is likely they will loose a high proportion of that 60% to Ocado Retail, even if they are able to up their online offering.

Waitrose do however have their market town stores, these will I think continue to be very profitable with loyal customers using the online service based at these stores as well.

Sainsburys is a basket case and in my opinion another Debenhams in the making. The instore management structure has collapsed with one manager running several stores and the staff lack motivation. Senior managers run their own little empires, largely for their own benefit and are only concerned about there bonuses.

One thing - it was an off book trade - so the shares went from a seller to a buyer what ever way you look at it.

https://www.londonstockexchange.com/stock/ENQ/enquest-plc/company-page

I did top up my Ocado holding when the price dipped after the summer share issue.
Any contrarian pick has its flaws and MKS is no exception, but it is a well run company and I have confidence that it can turn its fortunes around.
My core principal of not putting all my eggs in one basket certainly wont change.

Valueplay
I totally agree Ocado has the potential and that the SP will continue to rise up towards the 40's - that is the logical conclusion that we all expect, however, the City doesn't always follow logic and sometimes the opposite happens.

I think MKS is a good investment because all the pitfalls you point out are already in the SP - the market cap reflects that - when it becomes apparent that the company is moving forward again - especially with Ocado Retail - the SP will quickly recover to pre-covid levels and get back into the FTSE100 - it will be the institutional investors that will get it back and they will hold it there - so a save bet for a 100% gain later in 2021.

No, they are deadly serious.
Also they are better placed than anyone to make the switch for example - from offshore oil to offshore wind power and from oil refining to green hydrogen production - using the same assets.
I think that we can expect a whole series of acquisitions over the next few years as the oil giants buy up the small companies that are currently leading the way with renewables.

The irony is that it will probably be the big oil companies of today - Shell, BP, Equinor etc - who will eventually kill the oil industry as they switch from hydrocarbons to renewables over the next 20-30 years and hydrocarbon use declines.

romaron
PMO do have a heavy dose of dilution due soon but maybe when the dust has settled on that they could be a good punt.

Once it becomes clear that MKS has the legs to get back into the FTSE100, I think we will see a very quick rise - over a matter of a few weeks - back up towards 170p.
Although, we may have to wait until there is a covid vaccine to reach that point - stay patient.

Valueplay
The potential is here in bucket loads but as with any listed company it will need positive news - proof of achievement - for the SP to advance and retain its value - the jury is still out on that at the moment in much the same way as it was for Amazon for an extended period.
As for investing in MKS and elsewhere - never put all your eggs in one basket.

Ocado Solutions have to deliver to get to those heights - we need news from Kroger, South Korea and a maybe a few surprises to push up the SP to those levels.

Yes, exactly, they have good assets but have been let down by some poor decisions at board level that have been very damaging to the shareholders - when that happens the company becomes a take-over target.

Its very interesting that the SP rose so much on an Ocado Retail update - is that a first?

I guess it is just one more step to proving the concept and should encourage other retailers around the world just what is possible when an iconic retailer uses the platform.

MKS also did well today and looks to be paving the way for a return to the FTSE100 - if Ocado Retail can resurrect that old dinosaur anything is possible - I have high hopes it can.

It looks like there are a number of companies interested in acquiring PMO but the price offered may not be great - in other words PMO have messed up big time and the vultures are circling - maybe the morsel that is HUR will attract some interest as well.

Yes, it will be the institutions and their buying power that will lift the SP back to the FTSE100 - the SP only has to get back to the pre coronavirus price around the £1.70 - £1.80 mark.