Member Info for Valueplay

Superb results given the fire disruption. Shows how resilient Ocado is. Upwards move in shares today coming...

All the latest info on their current partners, Kroger, Casino, Sobeys sees them citing the importance of the online channel. So that looks stable/improving as an Ocado cash flow. Seems all positive to me as the market finally grasps that online grocery is an essential and highly valuable arena to compete in. And who better to hold your hand in that space than Ocado....

What's your expectations? Warehouse fire and it's effect on sales and sales growth has already been flagged up. Didn't put off M&S doing the deal so I think the fire was a random event they have learnt from rather than a big issue with the CFC business model. You'd think earnings statement will have negligible effect on share price price. I'm thinking there will be a small rise..

Ocado's secret talks with M&S could spell the end for Waitrose tie-up

https://www.theguardian.com/business/2019/jan/27/ocados-secret-talks-with-ms-could-spell-the-end-for-waitrose-tie-up?

https://www.dailymail.co.uk/news/article-6636341/Marks-Spencer-secret-talks-gobble-Ocado.html

Potentially big news to the upside. Seems MnS looking to buy out Ocados UK operations. Surely Ocado would only sell at a big price as MnS are in a v weak position and desperately need to catch up. Cash would allow opportunities overseas to be exploited and would turn Ocado into a pure tech player. Let's see if it happens...

Seems fair value now. As always there could be new deals ahead or they could burn cash to quick and things turn sour. Seems Kroger are very happy from CEOs recent press releases. I'm still a believer

I have very green fingers but in Winter it's time for my stocks to grow whilst the garden hibernates :o)

I signed up for the free trial period so I could read that article. Didn't say too much more, just that they were very happy with Ocado and want to increase and broaden that relationship. Shows a trend in my opinion. That Ocado can build solutions and grow other companies online sales.

Didn't see much else of note in Horticultural Weekly though :o)

Ocado's key partners, Kroger and Casino are behind the retail curve and in difficulty at the moment. Krogers shares have dropped over 10% since their results were released last week. Casinos difficulties have already been covered in my previous post. It is a weakness of the country exclusive agreement format which Ocado favours when those key partners encounter structural issues. However, there would be clauses in the contracts to some extent protecting Ocado from any changes within their partners. The downward recent Ocado share price move is understandable as so much of the share price is sentiment/news flow based. No new contracts and key partners tripping up in the market takes some froth off the share price

That's the downbeat part. However it's exactly these big retail players that are behind in online and need to compete that Ocado can add huge value to. Online is growing hugely and even if companies experience growth issues then they will still prioritise spending with Ocado as they need the tech to compete. Bigger companies, Amazon, Walmart , have their own top tech so the allure of Ocado to them is dimmed. I think the results tomorrow will be good growth as usual and an optimistic outlook for new contracts. There are many more second string big retailers who will need market-leading online tech to compete

Kroger are certainly ambitious. They have to be with Amazon and Walmart nipping at their heels. They are a very good partner for Ocado. They seem healthy at the moment. Their share price is rising and analysts in general agreeing with their strategy. Their latest results are out tomorrow so that will be a health check. Cracks in their results/strategy would have a knock-on effect. Morrisons results out on Thursday and Ocado results next Tuesday.

Best judge of them all - Tim Steiner - has recently sold 52m GBP of Ocado stock. As always though there could be a new deal round the corner. I'm a holder but the landscape with CEO selling and Casino in trouble has become more cloudy. They have leading tech in a critical battleground. Hoping for positive updates/new contracts soon.

Have dug deep and found this. Casino group in big trouble. Situation impacting Ocado alongside the general tech stock malaise of recent weeks. Ocado need their key partners to be healthy and ambitious

https://m.nasdaq.com/article/bondholders-face-risky-last-bet-at-casino-owner-20180906-00220

Half year results were released today. Swings have been about how results were being interpreted. Drop in profits initially viewed negatively but various brokers reinstated their buy recommendations. Price has now increased in line with those recommendations. Results looked good to me. No big negative cost surprises that hadn't been mentioned by the company previously. Lots of the language of press release was very positive.

Pleasure. Just needs another deal, continued positivity and a touch more Kroger support and that £14 you've long referred to could be on the cards.

Big about turn by Bernstein. They are now believers. Goldman still strong on the stock ------- BERNSTEIN RAISES OCADO TO 'OUTPERFORM' ('UNDERPERFORM') - TARGET 1300 (245) PENCE ---------- GOLDMAN RAISES OCADO TO 'BUY' ('NEUTRAL') - TARGET 1160 (540) PENCE

Pleasure. I have been seeking the info behind the current leg of the rise for a long time. 2 members of the Ocado board have sold significant share amounts and still great share price strength. Kroger think Ocado's shares are worth buying at this lofty price. That speaks volumes higher than any analysts view.

Kroger has been buying up more shares in Ocado in the open market. Rumoured to be buying to make Ocado's acquisition by Amazon harder. Krogers has a 6.1% holding now, and probably increasing ..... https://www.telegraph.co.uk/business/2018/06/07/market-report-ocado-lifted-krogers-stakebuilding/

Kroger already had a holding of 0.92% prior to their deal with Ocado. Don't think it points to more deals on the way. Just sensible cash raising by Ocado and sensible stake building in what's now a key strategic partner by Kroger. Others potential customers will be knocking on Ocado's door. Does Ocado have the capacity to sign other major deals at the moment though...

Kroger got a good deal, 5% of Ocado bought at £5.52ish a share. Huge benefits to Ocado of course

The synergy with Amazon does look compelling. Ocado would have had the deal with ICA brewing for some time but chose to raise capital before the announcement. As Tim Steiner has said, the time is now. There is so much opportunity for Ocado in the current market with their leading tech. Now with cash in the bank they can plough ahead on sure footing able to take advantage.

Bloomberg articles always seem to be negative on Ocado historically. In their opinion pieces they have poured scorn on Ocado's valuation for years. Yet the stock price continues to rise. Of course a deal in Sweden won't send the share price bonkers. It's already risen so much. Lovely though to have another deal to provide a firmer foundation for the stock price.