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Https://breakingthenews.net/Article/Palladium-soars-over-6-after-Powell's-remarks/61634362
Automobile industry in particular need more palladium per vehicle to meet tightening emissions standards going around for a few years now. One can imagine the number of auto factories around the world !
While recovering, there is 32.3p divi on 3rd of May (Ex. divi date is 14 March).
This is now oversold. I also feel some kind of consolidation may start in this sector as the UK stocks in particular, are well undervalued (A few approaches for Currys; today Spirent taken over). Many years ago it was BHP targeting RIO. AAL with its precious and rare metals could be a smaller fish to swallow. (Market Caps: BHP = 115B, RIO = 82B, AAL = 23B).
You may right onsolidground. Agree with your assessment.
This is a long term play to forget about for a few years.
As I said before, Amazon started with only selling books.
On here one could imagine various sections such as "Ocado Retail" for food and clothes, "Ocado Healtcare" for pharmas, "Ocado Components" for electronics and car parts etc. etc., all powered by its main central distribution brain: Ocado Robotics.
Agree 100%. They just need a tool to buy as cheap as possible.
OCDO at all fronts:
Ocado to offer ‘fine dining’ ready meals for cats and dogs.
hTTps://www.telegraph.co.uk/news/2024/02/19/ocado-fine-dining-frozen-ready-meals-cats-dogs/
The real precursor for strong growth is its expansion to other sectors outside food. With only a few partners in Europe and the US, it is making £2.5 billion. OCDO could grow exponentially if it enters other sectors for distribution such as pharmas, car parts, clothes etc. Its AI platform for efficiency and speed is unique.
From Goldman on non-food potential: This is very interesting if OCDO can fully expand to other industries as it now starts doing:
"This comes after Ocado announced its first non-food automated distribution contract deal with pharmacy firm McKesson Canada in November.
“If Ocado is able to deliver this [...] without significant delay, cost overruns, or integration obstacles, we believe it is unlikely that McKesson will eventually only order one facility,” the bank said in a note.
“Instead, it is likely to automate further parts of the fulfilment network.”
Deals to distribute on behalf of fashion retailers and automotive parts suppliers also present opportunities for Ocado, according to Goldman, with these likely to require less capital commitment than grocery agreements, regardless of being worth less."
hTTps://www.proactiveinvestors.co.uk/companies/news/1036190/ocado-soars-as-goldman-notes-potential-of-non-food-deals-1036190.html
This should and will recover for sure. Such a giant of a company struggling is really overdone.
This is a really ridiculous situation to see the SP hoovering around 60p - 70p for a good while.
So I expect recovery is on the way when the SP reaches such low capitulation levels
Update confirms what we already know. The big plus is that nothing is deteriorating with a good growth in the larger US market and elsewhere except in the UK, stagnating for the time being. So overall this looks positive and is the base for restarting strong growth from now on, as economies start picking up again.
The next Trading Update (Q3) will be announced next Thursday the 8th of Feb.
IMO the sharp 50%+ drop from £8 to where we are now has probably assumed the worst case scenario.
Any decent update will kickstart a recovery in the share price which is at 5 year low.
At such distressed share price, I won't be surprised to see a bid approach materialises when one looks at its long term potential.
A few months have passed now since the takeover speculation died off and the share price was then at £8 level or 54% down ...
"Watches of Switzerland surges on Betaville takeover speculation
Watches of Switzerland surged on Tuesday after markets blog Betaville said in an "uncooked alert" that the company was at the centre of takeover speculation.
Betaville said that people following the situation have heard rumours Watches of Switzerland has attracted takeover interest.
The identity of the company circling Watches of Switzerland is unclear, Betaville said, although there was some suggestion it could be a luxury goods giant.
Other people following the situation suggested a private equity firm may be interested in the business, which prior to listing on the London market was owned by US firm Apollo."
PE ratio is now around 7 and I think they have given the market their worst case scenario. IMO if any improvement is flagged up in the near future because, say of interest rates dropping or because people are buying luxurious watches instead of physical gold to diversify, the sp could rise sharply. Let's hope so...
Cash collection may be the other problem. Debt may rise further.
Thursday 9 February: Profits warnings usually come in a pair. Sometimes even in three.
WOSG SP will suffer further is they keep downgrading their numbers. We saw BRBY dropping from £22's to £12's = -45% in just 4 months. IF another profit warning is confirmed, meaning business is not picking up as expected, WSOG may revisit issue share price level at around £3. Again this is my own logic of course.
TMS: The problem is how the market reacts and how the geopolitical tensions progress. We now have tensions everywhere leading to supply chain disruptions affecting inflation. If everything becomes more expensive and there are wars on-going, even the richest would refrain from spending. So the market is probably anticipating a downturn in spending on luxurious items as they will not be a priority. This is my own opinion of course.
TMS: By "lottery", I meant it is too risky to stay invested as they may issue a second profit warning which could halve the SP from where we are today. It's rather "a casino" if there is a possibility of a second downgrade of its numbers as BRBY did it twice.