Member Info for chilting

The target has to be around 170 - that will bring MKS back into the FTSE 100 - I guess when institutional investors see it heading that way they will pile in - that could be much sooner than many people think?

The big difference is that there are many more strains of flu and it continues to mutate.
Coronaviruses may mutate slightly, so their is a risk, but generally they stay the same, therefore, a vaccine is likely to be more successful.

The other big player could be Amazon or Kroger.

Yes, the other option is to sell the other 50% of Ocado Retail to Tesco or another big player, who would fund the roll out of many more CFC's around the country.

The sentiment it is a changing!!!

I like a happy market!!!

Aimigo
Ocado has two divisions - Ocado Retail who have the partnership with M&S has reported today.
The other division is the tech company Ocado Solutions.
Ocado Solutions are rolling out the Ocado Customer Fulfilment Centre concept around the world - including for Kroger in the US.
Most of the value is in the tech company - they are considered to be the world leader , ahead of Amazon, in home delivery solutions.

Just expecting a report of steady progress and sales data for Ocado Retail.

We could get some new CFC opening dates in the UK and US.

Hopefully we will get an update on Kroger's plans as a result of coronavirus - maybe they will want to scale up their online operations - they can certainly afford too - but I guess all that would come in a separate RNS.

It will be interesting to

There is a rising trend line this year that follows the low points on 12 March, 30th July and 11th September.

Today signals a move upwards again that will probably rise above the trend line and take us back to 2500 within the next week or two.

We need the increase in the SP today to hold the trend line.

Good start to the week in anticipation of tomorrows Q3 - its all down to Ocado now as the Nasdaq woes recede.

The other problem for oil producers is that any hike in oil prices is likely to accelerate the change to renewables - so OPEC+ will be restricted in their actions to stimulate the market - if we do get a spike in the oil price it is likely to only be for a short period or periods.

It will all be down to the motivation of the big players - how quickly do they want to replace hydrocarbons?

The US under Biden won't want to resurrect shale so they could lead the change to renewables - under Trump shale will probably bounce back.

China have to import a lot of hydrocarbons - so that might encourage change.

The EU will likely try to change from hydrocarbons for environmental reasons but maybe with limited success.

The rest of the world will generally be slow to change from hydrocarbons.

But, any reduction in demand has to be bad news for the oil industry because it is likely to mean that producers have to rein back supply to prop up the oil price for an extended period - coronavirus has shown us what happens to the oil price when demand reduces.

https://www.theguardian.com/business/2020/sep/14/global-oil-demand-may-have-passed-peak-says-bp-energy-report

Clearly Ocado Retail HAVE increased capacity - it should be a great week ahead for M&S with Ocado Q3 due Tuesday!!!!

"Ocado sales could exceed £2billion for the first time this year after customers flocked to order food from its new partner Marks & Spencer. Credit Suisse forecasts that the grocery delivery giant has increased sales by two thirds in the past three months to reach more than £600 million. It said this could surprise some in the City who had raised concerns about its ability to cope with high levels of demand."

Its looking increasingly likely that Enquest are servicing AK at the moment - 10 days since the last tanker left and no sign of any action.
A 7 day service is planned for Q3 - it makes sense to time it while the weather is calm.

Neil
What do you mean by "layered a premium" - is it different to an increased margin???

Neil
You simply cannot compare Ocado's pricing policy to traditional supermarkets - the numbers are totally different.
Traditional supermarkets draw their stock for home delivery from their stores - with all the costs associated and have much higher levels of wastage that have to be reflected in price - hence the price hike - they need all the profit they can get.

Ocado just have the cost of the CFC plus delivery and they have far lower wastage - just 0.03% at the last count.

So to suggest that M&S products are more expensive with Ocado is not correct - unless you look at the stock M&S have to reduce in store to clear when it is close to its use by date.

There are bound to be price differences between the stores and Ocado because of promotions - just like there are differences between different stores in different locations - but to suggest that Ocado is generally more expensive is clearly not the case, in fact with all the M&S promotions on Ocado at the moment and the promise to beat Waitrose on price, it is much more likely that Ocado is cheaper for M&S products.

Also, don't assume that Ocado is maxed out on capacity at the moment - technical improvements are ongoing all the time and capacity is constantly increasing at the existing CFC's. Ocado is a very dynamic company with a can do approach when challenged - lets hope this attitude permeates into M&S culture.

No sign of any action yet - 9 days since the last tanker left.
Maybe the planned shutdown for maintenance before the equinox?

The CFC's are still under construction but they are using Ocado software elsewhere.