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Https://www.thetimes.co.uk/article/robots-sabotage-ocado-effort-to-become-tesla-of-grocery-3jpb2rgzg
"Robots sabotage Ocado effort to become ‘Tesla of grocery’
Analysts suggest automated warehouse business might not be as high growth as founder Tim Steiner hopes
The Ocado founder Tim Steiner’s long-held ambition to transform his business into the “Tesla of grocery” has received a further blow. In a note, analysts at HSBC highlighted the fact that the robot warehouse business might not be as high growth as hoped, forecasting slower uptake in what it said was already a “highly competitive” market with “many established participants”.
In particular, the analyst highlighted further problems with the company’s partnership with the US grocery giant Kroger, pointing to the fact it had announced the closure of three facilities, two in Texas and one in Florida, which failed to meet targets.
Ultimately, the analyst said that orders from Kroger, if anything, appear to be slowing down, underscoring the risk of overcapacity in the broader market"
I've no issues with anyone here. I will call out research based on what a guy on Reddit said or the importance of a couple of LinkedIn likes though.
Always DYOR. Try to go beyond the predominant blind optimism shown on this board. The profit has been there for those who have dared to investigate and capitalize on the flaws of Ocado.
Every chance Autostore tech is rolled out further by Amazon.
As to the rumoured bid. I'd take all that with more than a pinch of salt. Many vested interests at work manufacturing supposed bid interest in order to capitalise on the associated market movements.
Lol, I can't see into the future yet. I'm not Mystic Meg but I have carried out extensive research on Ocado over a 10+ year period. Over the last 2 years major flaws within Ocado have grown. I positioned myself to profit from my research.
As always DYOR. That way everyone becomes more enlightened and less swayed by others.
Best to all.
That's your research. My research points to bearish signs re the Kroger relationship
Best of luck. We disagree, that's fine, it's a discussion board. Meanwhile in other news shorts profits increase as Ocado shares slip further.
That's the possible bull case re that scenario. Personally I believe a bearish case is more plausible. Elements of the below..
Kroger reassessing their tech plans re Ocado in the light of the failed spokes. That Kroger now plan on building out a smaller Ocado network. Planning to build out their contracted CFCs but little more. Kroger looking at utilising their other online delivery partners more.
Shorts are massing for obvious reasons. Lack of significant new contracts. 2 main CFC contracts pausing ordering new CFCs for the foreseeable. Meanwhile losses still high. Overcapacity at Ocado retail crimping profit etc.
As ever though DYOR...
Ocado could as always move higher sharply at any point on news of a big contract win or similar.
Looking however at the slowing of the new contract sign ups, the issues within their current major contracts it points to me that demand for their tech is slowing considerably. Costs are ramping up, without new CFC orders the equation starts to break down heavily to the negative side. Large losses are still being reported currently.
Holding optimistically, hoping for upside is a common trait amongst longs of this share. So much value has been presented as the cracks have appeared. Still more value for shorts here IMO.