Member Info for TrojanHorse

Depends how you look at it, with Ocado and a much better online presence there is opportunity from a potential ‘non-essential shop’ closure scenario.

Take Waitrose half year 2020 results as an example they said ‘like-for-like sales were up almost 10% on last year. The early days of stockpiling pasta and long life milk have given way to a varied basket with more fresh produce and a return to the weekly shop. Demand for online shopping remains strong and we are now delivering around 170,000 weekly orders, up from around 60,000 before the pandemic. The average basket size is four times bigger for home deliveries than in store.’

Given the more luxurious Christmas food is now being sold this could maximise the value of the Ocado/M&S JV.

Neil- agree, these forecasts are just based on the statement already announced in August and the forecast made in March- simple maths. I don’t think they factor the Ocado sales or other non-mks Clothing brand sales. 10-15% group revenue reduction doesn’t sound that bad given the circumstances. Time will tell as always but what a rubbish share price today.

Plus I don’t agree the high street is dead. Even during a pandemic the high street has customers. That says it all.

Well, I’m of the view they will do well, they can cater for the online market now and think of all the pent up demand for clothing once this is ‘over’, when people are going back to the office a realise they need new suits, shirts etc, there are not many large retailers who cater for this market. Plus Christmas will see more clothes sales to relatives who don’t necessarily like to wear a boohoo outfit...diversification is very important and M&S have that. Not to mention the more eco third party brands they are now hosting- that’s a good move. The SP today just doesn’t reflect the change being played out to all.

Doesn’t that vindicates M&S’s decision to buy 50% of Ocado Retail. It makes M&S much more valuable, good decision from management.

seriously guys, can we keep this to M&S research.

Regarding the record low comment- I agree they are, not right is it!

speculation. One of many audited risks a company with physical assets faces- we are in a pandemic so I don't think you can draw much conclusion from asset values at the moment. For instance Cruise ships are effectively junk a the moment.

yep it's an awful time right now. One of the problems with the SP is there are quite a few companies of reasonable value which I expect are also getting attention if anyone is choosing to invest at the moment.

Very much speculation, I expect some form of lockdown for a short period leading to pubs and restaurants being shut during that period, much like Germany.

Physical store sales will be down, but not as much as the original COVID-19 forecast , I think the original COVID-19 sales forecast showed a 70% reduction in clothes and home sales during H1 but I expect it will be closer to 40-45%. I also anticipate food sales will be well above the 10-15% reduction forecast even to a positive percentage. Overall group revenue down probably down 10-15% vs 20-25% forecast but not taking into account Ocado and other aspects such as new brands offered online. Costs should also be lower given the company should be working hard to save everything the can.

Overall I expect them to come out of this a leaner more focused company with a greater online presence. The SP today does not reflect this.

I guess if we do have to go through another lockdown you’re talking about 2 weeks. Bad but perhaps not as bad as March. Plus M&S is in a better position today

Nice little article https://www.fool.co.uk/investing/2020/10/24/2-uk-shares-id-buy-in-november/

Yes blackrock, they appear to have increased their position (whilst reducing their short position) the price movements these last two weeks have been very odd, I don’t like the large swings in just a matter of minutes, shows how little volume can move it.

It sounds a good investment plan. I fully admit M&S have work to do, I really like the sustainable/ethical direction they appear to be heading, that may separate them from some of the online clothes retailers. Food wise they have done well and I expect this to continue (and be helped during the pandemic).

Results for November, who knows Food up, Clothing down but better than base case made during the start of the pandemic. I expect some positive news regarding Ocado and online sales.

Well without M&S you’d just have pretty robots with no boxes to fill. They do and I see no reason why both companies can’t benefit from this relationship

Are we really going to go down the Ocado vs M&S route again. So boring, especially as they rely on each other.

Did they increase their holding yesterday?

And it’s still October https://www.retail-week.com/customer/marks-and-spencer-reports-early-surge-in-christmas-spending-searches/7036045.article?authent=1

If M&S continues along this route regarding clothing then I believe they are on the right path. https://fashionunited.uk/news/retail/nobody-s-child-launches-at-marks-and-spencer/2020100151172

I hope they can also offer something to the customers of pea****s, Edinburgh woollen mills and Bon marche.

Compare this to the stories being written about Boohoo and fast fashion at the moment, M&S could have a bright future.

I’m starting to wonder if M&S has offended the market gods...may have to sacrifice a Percy pig at this rate