Member Info for Valueplay

Absolutely Bayobach.

The focus has to be on where the value lies with this share not deriding other contributors. Happy to have extracted the value short for the last 2 years. Still believe there is some further downside due to current flaws in the company as posted previously.

As always DYOR and look for the profit wherever it may lie.

"I have NEVER used the word shallow..."

Err yes you have.. Your quote is below Poker. I understand now why you can't carry out your own research given your memory is fading lol....

"to any one who looks at the detail they have a very shallow sense of analysis behind them"

Why ask for my help regarding your research Poker?

It's obvious you cannot stand hearing about bearish research re Ocado. Most people on this board are in that boat. That's fine but to deride other research houses analysis as shallow is schoolboy stuff.

Best of luck

It was your choice to deride my quoted research as shallow. Why would anyone then spend their own time helping you? You should have the capacity to work things out...

"Be kind whenever possible. It is always possible” Dalai Lama

CFRAs price reduction and research is of value. This investing.com article could have been better written. Like so much of financial journalism these days.

Yes, that should be amended to - Kroger's goal of expanding their home delivery scope outside their store network geographies. The closure of the 3 Kroger Ocado spokes points to Kroger being far more hesitant re expanding in this way in the future via Ocado

Id normally answer your questions poker but having derided my quoted research as very shallow I think I'll leave you to research it yourself.

Liked that you said please though. Your mum would be proud.

Fair enough Poker,

Personally I always respect the different analysts research. Don't agree all the points of view for sure but I don't call them out as very shallow.

We all have our different approaches though.

Sangijuelas1,

Personally I'd take any information a supposed Kroger employee said on a reddit board with a lot more than a pinch of salt but hey fair enough if that's what you base your research on.

Poker chips,

Very naive to think that it's shallow analysis that links Kroger spokes closing to a lesser evolution of the Kroger Ocado ecosystem. The analysts at CFRA have far more data at their disposal than you but hey we are all entitled to our opinions whatever they may be.

Sangijuelas1,

When Kroger were announcing new CFCs and spoke builds with regularity this boosted the share price. Many assumed that Kroger would go far beyond their contracted 20 CFCs and build out 40+ CFCs with associated spokes. Kroger havent commissioned any extra Ocado CFCs or spokes for around 8 months now. They have now closed 3 spokes. The obvious read across IMO is that the eventual Ocado network that Kroger will build out will be smaller than previously thought with less focus on new markets. Also that they will be slower in commissioning new Ocado hardware. You disagree with this point, fine.

Kroger have talked about their online sales positively in results calls. They though deal with many partners to facilitate their online sales, Instacart, Shipt etc. The read across from the spoke closure to me is that they will be leaning on those other online providers more and not expanding as much as they had thought initially with Ocado after the spoke failure.

The Kroger spokes closing isn't terrifying but it's been a big driver of the recent share price drop. The obvious read across is that Kroger will be building out a less extensive Ocado ecosystem and will be developing it in a slower timeframe than previously envisaged.

However as always DYOR.

I've been highlighting issues at Ocado on this board for near 2 years now. Most ignore any negative talk though, they want to buy in to make a quick buck, swayed by Ocados slick corporate headlines, not researching in depth. There's a real lack of genuine deep knowledge re this company amongst those who invest in it.

I've been positive on Ocado in the past, was an early investor in the company. Cashed out for a good profit. For near 2 years now have been bearish on Ocado after my research pointed to issues/ flaws within the company. Switched my investment to profit, extract value from Ocados fall. Very happy to have done so. Cashed in most of my bearish position but still have some in place. Further to fall imo.

I always look for value and align my investments to profit from it, whether that be long or short.

Good to have you back onsolidground. Did wonder where you disappeared to. A month ago you were lauding Ocado retails poor latest results then you disappeared?

Ocado shares down 38% since then

Exane were spot on Boyo. If you asked them now I'm sure they'd give a more downcast price target than their previous one. Recent results both Ocado group and Ocado retail have been poor. Ocado are now on the verge of a legal battle with M&S. Kroger shutting multiple spokes which is a red flag re future expansion expectations of Ocado infrastructure at Kroger. Yes Kroger are committed to online grocery however they have many partners in this space, Instacart, Shipt etc to carry out this function. The read across is that they will be using Ocado in a less expansive way.

Ocados online delivery model is a high consumer of fuel as they deliver to customers from heavily centralised CFCs

This is a vulnerability when the oil price spikes.

It's a risk off market currently and it's obvious for Ocado to drop further given the extent of issues at the company.

Not true poker chips, Ocado pay the great majority of the CFC build costs. Then they recoup these costs in the main via receiving a percentage of the value of the goods that pass through the CFCs.

If you look back at the history of Ocado when major contracts have been signed Ocado have carried out a corresponding cash raise. More recently Ocado have carried out cash raises independently of major contracts being signed.

Providing the upfront capital is Ocado's way of enticing clients to sign up to ordering the CFCs. More enticing for grocers to pay later via volume fees than stump up hundreds of millions at inception of the contract.

Concerns re slow CFC rollout and the recent Kroger spoke closures (as I have highlighted at length previously) are driving their reduced forecast.

"Ocado shares target trimmed by CFRA amid Technology Solutions concerns"

https://ca.investing.com/news/company-news/ocado-shares-target-trimmed-by-cfra-amid-technology-solutions-concerns-93CH-3353503

"The adjustments come as Ocado's current roll-out of its Customer Fulfilment Centre (CFC) is progressing slower than expected and is unlikely to meet the full-year estimate previously set out by analysts.

Ocado's key partner, Kroger (NYSE:KR), has also shifted its strategy, moving away from the initial goal of a home delivery service. This change in direction has led to the closure of three Ocado-powered spoke facilities. Although these closures are relatively minor in the context of the potential CFC order pipeline, they are perceived as a negative indicator of future performance."

Bet 365 is a private company. The owners can set their own levels of pay. Very different from Ocado

Ocado group is a public company owned by its shareholders. The board of Ocado should be setting appropriate bonus pay awards which have a link to the company's share price performance over the given period. Rightly there will be a lot of disquiet at this years Ocado AGM re the pay awards given the dismal share price performance of late.

I think Tim Steiner is thinking more re life beyond Ocado. He'll be happy to take the easy £5 mill bonus if the shareholders let him. Wouldn't surprise me if he left within the next few years.