Member Info for Valueplay

Ive posted on this issue countless times before Sangijuelas1. No point rehashing everything again.

Best of luck. All will become clear in time.

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...

No reporting RNSs are due today from Ocado

That reports from 26 March..... Old news...

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.

HSBC cuts Ocado price target to 285 (370) pence - 'reduce'

PI,

The information I have provided on CFCs is factual. I have been posting my bearish findings re Ocado on this board for 2 years since I uncovered flaws within the company via my research. Posting on the board is useful as I can then discuss the issues with other informed posters. So much dross posted on here without any thought/research behind it but there's also some enlightened posters who it's useful to engage with to sharpen my outlook/findings re the company.

The same flaws I have previously outlined are still there for informed investors to see.

Short currently is an obvious position to take re this company, as it has been over the last 2 years.

Had the short in place since £9.76 so no not feeling the heat. Took profits when it hit the low £5s but still have a short position in place. Never possible to time things perfectly but happy with how things have gone. Small blips upwards for Ocado but I still believe the downwards retracement will continue over time.

PI, you just repeat the same rampings. I'll stay around, always interested in the value Ocado gives.

Marks are disputing the facts of the over expansion sign off.

Dispute ongoing, law courts possible.

The overcapacity came about because of mismanagement by Ocado re the reaction to the COVID situation.

Marks and a Spencer's rightly are disputing their payment owed to Ocado re this issue.

There is very little talk in this board re the 2 largest Ocado Solutions contracts having extended paused re commissioning new CFCs. The very slow sign up of new CFC customers. The large overcapacity at Ocado retail crimping profitability. Etc etc

But there we go. It's been plain to see over the last 2 years for me. The value has been there re the downside and it has been very profitable. Follow the value, DYOR.

RP,

Well done re selling at £6. So many issues at Ocado group currently. Well done on seeing the reality instead of just hoping things better. The crowd on here only want to hear positivity. Negative issues pushed under the carpet.

PI_Winner,

Is what I've said false?

"factually pointing out that Ocados Solutions 2 main partnerships have halted commissioning new CFCs for extended periods"

The holders are those who have been squeezed over the last 2 years not the shorts..

No complaints. I'm just factually pointing out that Ocados Solutions 2 main partnerships have halted commissioning new CFCs for extended periods. It's a major current red flag imo.

Many will ignore the issue though...

It would be great if Ocado could expand their 2 main partnerships. However Marks and Spencer's through the JV have halted commissioning new CFCs for 2 years and the Kroger pause in ongoing 8 months on.

Marks and Spencer's are one of Ocados main partners. They have decided to pause commissioning new CFC investment.

Ocado retail, the joint venture of Ocado + M&S has paused commissioning further CFCs.

While there are issues in their major technology contracts the risk off sell down will continue imo. The 2 largest customers have paused commissioning further cfcs and Ocado currently extremely slow at signing up new partners to it's technology.

These flaws would be apparent wherever Ocado is listed.