Member Info for Valueplay

As a software development company Ocado is disproportionately sensitive to interest rate rises though. You will see in my graph that the US treasury yield is spiking today. Future interest rates are always something to consider when owning Ocado shares. Recent rises have surprised the market.

Interest rates are now forecast to move higher quicker in future. Ocado goes to the bond market every 2 years or so to finance it's new contracts and expenditure. Costs of finance are forecast to be more in future. This hits the share price. US 10 year treasury is key indicator. UK rates usually move in line with it in time.

https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

Yes, budget was good for Ocado. Bond yields rising again today in the US today after falling yesterday. This weighs on Ocado (a software development company) and tech stocks in general.

Lots to look forward to this year for Ocado. 7 new CFCs to be opened at a time when the online grocery market has opened up greatly....

The CFCs in Canada and France have opened this year and currently all have superb delivery accuracy already. Happy customers will lead to more contracts in time. Some though still see online grocery delivery as overrated. As others ramp up their online offerings and store based retailers realise their online operations are still loss making then Ocado's solutions will further be sought after.

China, India and other countries with low labour costs will be contracts that Ocado will look out for in years to come. For now though grocers in countries with high labour costs will be their focus as there is a higher cost saving putting in reliable robots and Ai to replace human labour.

It could go lower, it could go higher. We all cannot precisely predict the bottom or top for this share. We can only use our best judgement.

Ocado had a dip to £22 late last year and then rebounded upwards. The online tax I believe to be factored into the current price. The tax is strongly expected to be announced tomorrow.

There will be far more work from home permanently post pandemic. More time for people to accept deliveries in and consume at home.

My reasoning for buying Ocado shares yesterday at £21.63 for those genuinely interested in Ocado....

- Overall tech market showing rebound strength as bond yields in the US stabilise
- Recent 2 large share purchases after annual results by Ocado directors at £26/27 a share
- Good possibility of new overseas Ocado Solutions contracts being signed when travel bans are eased.
- I disagree with broker Kepler Cheuvreux reduce recommendation on Ocado shares issued early yesterday.
- I believed the kantar grocery sales figures release this morning would again show superb growth for Ocado. It does.
- I believe recent falls are overdone given the impressive annual results
- Possible online sales tax a known issue for some time. Issue factored into current share price to a large extent
- Ocado now has a strengthened management team in the new chairman and CFO

As ever Ocado remains an extremely volatile stock. Broker Shore Capital still refuses to even rate the stock, indicating it believes Ocado to be of little value. Bank of America on the other hand values Ocado at £34+

It depends which group of analysts one sides with. Personally I am with the optimistic group who have called this correctly for a considerable period.

Best of luck all.

If you weren't stirring you'd obviously agree that 100% is a fantastic annual return.....

You are just stirring. If you feel a 100% annual return is merely ok then there's no point discussing further/in detail.

hedged - let's see how the share price goes....I am happy to have topped up today at £21.63. I have written countless posts recently regarding my current thoughts on Ocado. Have a read.

There's little point interacting with you if you still believe a 100% annual share price return is "ok"

Swathe of posts removed just now by Neil. He dishes out insults but when it comes to receiving them has the thinnest skin imaginable......

Would do Gio but I think covid travel restrictions are in place. Could get him a couple of weeks in a quarantine hotel instead?

Plainly obvious to everyone as to your motivation on posting so much on an equity board you do not own. Or that's what you say...

Happy with my purchase today. May not be the bottom but to me it was an attractive entry price.

Just topped up at £21.63

Best of luck all

Let's see if you have the courage to let others judge......

Let's see what others think. You probably will try to get the post removed again though...

lol, you are extremely touchy as you've run to the moderators and had my earlier post removed.

Your profile on the advfn board is below. Everyone can look at the 8th and 9th posts down on page 1. I have copied the posts below. You'll probably run to the moderators again though rather than let others judge....

https://uk.advfn.com/forum/search?q=neilhumphreys&index=posts&post_poster=on

02 Nov 2020 - 13:58:07 - 577 of 588
Many will be caught out here in my view as the lows have come and gone. Only upside now. Do your own research and dont listen to the strange folk on here. I am so happy Ocado going back up! JV going exceptionally well with M&S we could see sales on Ocado top £3b Per annum! Fantastic and well done all, wish I was in M&S!

Neilhumphreys - 02 Nov 2020 - 12:48:05 - 7336 of 7433
I dont have M&S equity as I sold at 135 and 111, and I am fully invested in Ocado. One wishes I had additional resources to invest in M&S as I expect 120 on this equity shortly!
Do your own research and stay happy guys and dolls yeah!

Anyone can see they are your posts, let's see what others think. There's a very long history of posts in your own distinct style. You are just playing games here. Of course you are touchy when the truth is unearthed..

Neil, Your Pharma holding of GSK has returned -30% share price growth for you over the 20 years you've held it for. You certainly would hope it will do better over the next 20 years!

See several posts ago hedged. Ocado is a software development company not an online retailer. It's definitely not a silver mining company, electric car company or a virtual currency either. Just some of the mishmash of companies you were comparing Ocado to..

May fall further but in time I see it rising. Im happy holding.

lol hedged, you picked well performing stocks in random sectors. You even quoted bitcoin and Tesla. Anyone can pick past outstanding investments and then say others are poor.

100% return is great over a year, especially when it's comparable indexes of the FTSE 100 and techMARK gave far, far lower returns. To say a 100% annual return is ok is laughable