Member Info for Pursestrings

I am well aware of the current matrix for dividend payments. The main reason a dividend was not awarded is due to the conflict with the Government as regarding the business rate relief that M&S enjoyed during lockdown. The majority of share holders will want it reinstated ASAP.

I can’t see M&S share holders stomaching a >1 billion RI for a 73 million profit. The initial placing made sense to get the online exposure. They love there divi to much to be dragged into a commitment of that size. If Ocado loose the case then you might have a point.

The reality is M&S would not pay a valuation of £17 a share, probably half that figure would be expensive.

Yes, Ocado will not sell, it would leave them to exposed. If the case fails the SP will crash and a venture capitalist or Autostore will pick up the pieces for a £1 or so. The retail is the only division that makes money. The next event to watch for is Quad Witching on 17 Dec. Looks like last Fridays instruments should finally settle today.

Last Fridays December expiry of Options could take a day or so to unravel.

Agree, Ocado needs the retail to cover tech investment. Today’s rise could well be due to the expiry of December options which have been huge. Some companies have seen there SPs subdued for funds to buy and others inflated for funds to sell.

Depends whether your a bond or share holder. The bond holders look to do well a potential 45% gain.

Yes great results, but I wanted the divi, I understand the reasoning for not declaring.
I got out first thing this morning will look elsewhere for the time being. I think M&S are in much better shape now and may come back later next year.

Regardless of how good the results, without a divi re introduction the SP will fall.

Would expect SP to rise until ex divi. It still has a yield of 5%.

This is nothing to do with the legal case, it will plummet if the case goes against Ocado.
The share price is range bound.

There is no chance of a buy out. There are over 700 mil shares in issue. Then you have the potential of a further 600mil from the bond maturity in 3 years that has to be realised. Even an offer at £10 a share would be ridiculous. I haven’t even considered the possible RI next year. Selling the retail division would give them cash which would stave off a RI but this is the only profitable part of the company. Selling the retail division would make Ocado very vulnerable.

Not worried about £2 just want the divi back.

Yes, I would expect all the brokers to align to £15-£17 overtime.

The medium term share price will be governed by financing issues. I would expect next year the company will need to go to the market for support. I don’t think the revenue streams from the current Overseas contracts will be be in place for a least a couple of years. In 2024/5 there is also the overhang of the 600 mil bond maturity/ conversion which is projected to be £17 a share. Therefore I cannot see any opportunity for gain apart from short term swings. So £15-£17 seems reasonable for the next 4-5 years.

Yes, there is nothing to worry about here. Looking at Bidstats they continually win new tenders and increase value on existing contracts. As mentioned a nice increase in dividend, this as I said before is difficult share not to be in.

Quad witching

Value, if we all had the same opinion it would be a dull board.

It’s not just about legal costs, damages, appeals and reputation would also have to considered.
Then the case may not be clear cut. My view is Autostore hold the cards as I think Ocado will need to win big.

Autostore would not have raised the issue with the US and UK courts unless they are confident of infringement. The costs are far to high, again this is a Pivotal moment for Ocado. Deals and contracts are irrelevant if they loose the case. Indeed they could be playing into Autostore’s hands.