RE: There's a long way to go as yet15 Sep 2020 23:46
Chilting,
You underestimate what's needed to push Ocado's share price into new highs. We first compared the share prices of Ocado and Marks and Spencer on July 5, 2000p and 100p respectively at the time. From then Ocado has performed +30% and Marks 9%. What news has Ocado released since July 5, very little really. Today's statement confirmed the JV is going well which is unsurprising. It's flown up 30% on the back of the flight to quality tech in these superb extended low interest rate times. Also due to the ongoing pandemic pushing more of the world to try online grocery shopping - the bigger the market the bigger Ocado grows. So many people including many analysts still do not understand what's driving Ocados and the massive growth ahead of it. Shorts have consistently helped Ocado's share price as they unravel time after time. Recently you said it would need an out of the blue RNS to push back to £25. Reality is that consistent large growth of Ocado retail was all that was needed.
£40 is very doable. Tim Steiners £100m of options (rough figures) are hinged on the share price hitting £43. So far he has led Ocado on a march with laser like precision. All the current Ocado solutions partners will want to expand their capacity with Ocado. I believe there will be a few new partners within 3 months. Yes there is execution risk but so far even where there have been major setbacks, ie the fire, Ocado have shown they can bounce back very rapidly.
As for the dinosaur MKS, it's a mistake to siphon off investment in Ocado to invest in Ocado's solution partners. With Ocado JVs the partners will grow but the growth will continue to be far greater for those driving the industry change (Amazon/Ocado)
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