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Ocado is 90% tech company, 10% food retailer. Its hard to find any directly comparable listed companies as most of it's competitors are private (Autostore, takeoff technologies etc)

What I was meaning when mentioning justeat and hellofresh is that often their shares react in the same way to lockdown extending or easing. On Monday Boris confirmed he was sticking totally to the roadmap of non essential stores opening, restaurants opening etc. This caused slight downward pressure on Tuesday for companies that benefit from eating at home.

Stripper,

SoftBank stake acquisition can be viewed as negative for Ocado. The price they've paid for the Autostore stake though could be viewed as a positive. It supports the high market caps/ valuations of the sector.

The fact the share price barely reacted today speaks volumes louder than our posts. It was an off day for similar sectoral shares, hello fresh, just eat etc.

Share price bouncing back upwards. Fascinating story developing here. Might SoftBank push to collaborate with Ocado via offering to withdraw the courtcase? Many possibilities out there for the next plot twist.

Yes chilting. Could argue SoftBank see value in an Autostore case win. Could argue Thomas H Lee are the best to judge things and they are selling. It's a punchy valuation for Autostore so reflects well on the industry valuations. It's much easier to acquire a big stake in a private company than a big stake in a listed one. Anyone would face a lot of hurdles if they wanted to purchase 40% of Ocado.

Stripper,

I'm interested in all Ocado news positive or negative. This news could be viewed negatively. Could though be viewed positively. The fact the private equity company sold the stake, why sell if there's a big court case win near? Shows the huge value in warehouse logistics tech. The share price reacted very little to the news.

"SoftBank’s latest technology investment is in Norwegian robotics business AutoStore, which uses robots to transform warehouses into ultra-efficient storage facilities that don’t require costly humans to operate.

The Japanese technology conglomerate spent $2.8bn (£2bn) to acquire a 40pc stake in the company, which uses powered robots and a network of cubes that store items in so-called “bins” for easy retrieval.

The deal values the business at $7.7bn, it has been reported.

The start-up had been owned by private equity business Thomas H. Lee Partners while investment fund EQT also retained a stake."

One spurious law suit in different geographies won't stop Ocado.

As travel bans ease great chances of new contracts to follow...

hedged,

You've predicted that Ocado shares will fall to 1600p in 6 months time. Let's see.

It's very surprising that you were invested in Ocado at any time. You have only recently found out that Ocado has made no overall profit and that it uses the common EBITDA cash flow metric? Seems you invested blindly before. Good to see you are doing some homework now.

Personally I see good progress ahead for Ocado.

Best to all.

A shambles?

1280% share price growth in 10 years. 7 major current contracts with international grocers. One of which is the largest supermarket in America by revenue, another part of the biggest retailer in Asia.

Lots of very happy investors on this board..

Using EBITDA is a common practice amongst tech shares. There are countless other huge companies who use EBITDA. Uber, pinterest etc. Multi, multi billion dollar companies. If you can't see the value of those companies well... go short them all, you will make huge amounts of $$ if you are correct and they go bankrupt.

Short the entire nasdaq while you are at it.. lol

Ocado leadership slow? 1280% share holder return in 10 years. They've gone from a small online retailer to being the world leader in online grocery technology.

It's one spurious court case replicated in different geographies against Ocado by one company . Ocado have already won a court case against them in Europe. The counter claim cases launched by Ocado could be very lucrative. As edtheeuph has outlined the case against Ocado is very flimsy.

Thanks for wishing us good luck Neil. If that's truly the case you will cheer us on as the share price rises. The majority on this board are vastly in profit from their investment and are looking forward to more profit on the horizon.

It would be more surprising if Ocado did not use this metric hedged. They are just following normal practice for listed tech companies.

As said EBITDA is a commonly used performance metric used by technology companies. Ocado is doing nothing new by using it. It's an obvious metric for Ocado to use.

Phil has made many calls regarding Ocado, continually not seeing value at each juncture. It's worth pointing this out as it devalues his research.

Ocado have taken a longer path due to them totally changing their business model. They started out as a retailer but are now 10% retailer 90% tech company. The tech profits are linked to Ocado receiving a percentage of the sales from the CFCs that are being built around the world currently. Ocado have been contracted to build over 40 of these CFCs. Many more will follow as new contracts are signed and existing partners order more.

The mighty oak trees Ocado have in place are the 7 international contracts they have around the world. Through these channels will flow huge profitability which will ramp up in the years to come.

EBITDA is a commonly used performance metric used by technology companies. Ocado is doing nothing new by using it. It's an obvious metric for Ocado to use.

Phils track record regarding evaluating Ocado is very poor. In his articles has been a consistent bear regarding Ocado and has failed to understand the company and realise the huge potential Ocado has. He's not the only one.

Yes, have read Phil's articles. He recommended avoiding investing in Ocado when it was priced 157p a share... lol

https://moneyweek.com/94159/company-in-the-news-ocado-takeover-target-6321

Another expert who has missed the great opportunity Ocado has presented to shareholders..

I sleep very well also. Had I been an early investor in Ocado and then limply, prematurely sold my holding for a pittance. Well that would give me restless nights...

Ocado produce profit/loss figures only at the overall group level. The rising EBITDA gives a valuable insight into the profitability of the retail side that comprises 10% of Ocado group's worth. It has been rising steeply this year reflecting the increased profitability of Ocado retail. These profits from retail are invested straight back into the Ocado Solutions side of the business.

Ocado has had detractors from day one. Many still say the company is worthless. Some say the company is too successful creating a valuation that is too high.

Meanwhile the share price has sailed up every year time after time. Personally much happier with huge share value growth than a payout of a parltry dividend every year.

Lot more share price upside to come. One thing is certain. Ocado will always, always have masses of detractors. Many investors hate to see share profits pass them by.

As there's no breakdown of the profit figure we cannot tell the profitability clearly. Also the terms of the Ocado Solutions contracts are understandably not public so that detail is open for debate.

"EBITDA stands for earnings before interest, taxes, depreciation, and amortization. EBITDA margins provide investors a snapshot of short-term operational efficiency. Because the margin ignores the impacts of non-operating factors such as interest expenses, taxes, or intangible assets, the result is a metric that is a more accurate reflection of a firm's operating profitability. Thus, many analysts and investors use EBITDA over other metrics when conducting financial analysis."

https://www.investopedia.com/ask/answers/042415/what-exactly-does-ebitda-margin-tell-investors-about-company.asp

Since mid 2010 Ocado has produced a 1280% return to its investors. It's value, market cap, has increased by a similar amount.

Many still do not understand the company though decrying the lack of overall profits, dividends - This will always be the case.

Ocado is not a traditional company, it is a groundbreaking one.