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There's plenty of room for this share to drop lower.

The recent Ocado analyst briefing was a success and it stabilized the Ocado share price temporarily. However this move cannot be repeat by the Ocado management, they have got their information out there now.

What the Ocado share price desperately needs is a new overseas contract announcement. Tim Steiner outlined his belief of many new contracts coming Ocados way as a result of the reimagined Ocado announcement. Thus far though the only new contract has been for 1 new CFC from an existing Ocado Solutions customer.

There may be a flurry of new contracts about to be announced or the recent deterioration of the world economic outlook may have led to grocers shelving plans to partner with Ocado instead focussing on the strengthening of their existing services.

Personally I see better opportunities ahead as entry points into this share.

@ Pokerchips

Yes there will be a blizzard of strikes causing wage inflation. The government is telling all not to ask for a pay rise but who would listen to an inept government currently?

@pokerchips

Interesting article. The interest rates now and where they are predicted to go are not high by historic comparison. Difference though is that the extremely steep, rapid rise in inflation has been caused by unforeseeable factors. Ukraine war and covid supply chain bottlenecks are thought to be responsible for two thirds of the current inflation. Companies would not have foreseen these factors and would have made internal predictions of inflation and interest rates being at a much lower rate -positioning their finances accordingly. Every sign the Ukraine war will continue for a year or more.

This quick, rapid shock to the system will leave many households and companies very exposed

Like you I am interested in Ocado however the sidelines is the place for me currently in this market storm

@chilting

Cash can give a very high effective return when compared to investing in a falling stock market.

Continuation today of the market sell off re last Fridays US inflation data..

May inflation report just came in higher than expectations in the US. Downside momentum increasing.

@Newdealz

Covid lockdowns back now in China...

https://www.theguardian.com/world/2022/jun/10/xi-jinping-says-persistence-is-victory-as-covid-restrictions-return-to-shanghai-and-beijing

Lol re "limp mode". That's one way of describing it

Long gone is the time when the market waited for people to return from holiday in order to react..

Newdealz,

I'd say by highlighting your quoted article you are clutching at straws. The long Chinese lockdowns were bound to end recently. You can't keep citizens locked down indefinitely. It's obvious that the new Chinese export figures would be significantly better than compared to previous month when lockdowns were in place.

We will see over the coming weeks/months how the economic outlook progresses. Personally I believe there will be more surprises to the downside than upside..

Imo theres a big UK recession upcoming. Just today the below occured. Gas prices already were at a very high level.

"Gas prices have surged by more than a third after a fire at a large export terminal in the US threatened to wipe out deliveries and compound supply fears sparked by Russia’s war.

UK gas prices jumped as much as 39pc in early trading, while the European benchmark was up 16pc."

Source today's telegraph

Billy,

This is an Ocado share chat board. A place for anyone to offer their opinion positive or negative regarding the outlook for this share. Aside from throwing around insults do you have any opinion on Ocado shares? Would be interesting to hear your own outlook and some analysis too if you have any?

Cheers

Happy to have cash on the sidelines, I see further falls for Ocado ahead, driven by the macroeconomic environment deteriorating further....

Best to all

Casapinos,

Ocado is a very divisive stock. Many see a very bright future for the company, many see the opposite. The analysts are no different..

Bernstein cuts Ocado price target to 1,990 (2,110) pence - 'outperform'

RBC cuts Ocado price target to 800 (1,700) pence - 'sector perform'

Now the share impressively bounces back. Very good sign for the future if the Ocado share price can rise despite interest rates forecasts rising further.

Big hike in US treasury rates so far today. Ocado share price drops sharply as a result. If treasury rates fall or plateau Ocado shares could continue their gain but if they increase then the Ocado share price is going to find it very hard to rise further..

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

Good analysis Casapinos. Certainly the modelling presentation looks to have gone down well. Equally important in my view had been the easing of interest rates in the US which had created a jump recently in the Nasdaq and most growth shares. See the rate on the 10 year US treasury drop recently.

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

A contributory factor also was Rishi Sunaks much bigger than expected give away to households to ease energy bills. Wealthy pensioners were one of the biggest beneficiaries. It is a subset of the population that is well served by Ocado retail

JPMorgan cuts Ocado price target to 850 (1,550) pence - 'neutral'

Goldman Sachs cuts Ocado price target to 975 (1,475) pence - 'neutral'

Carrington,

Yes, a key aim of interest rates is to subdue inflation. UK interest rates are completely out of touch with inflation currently. I see interest rates rising consistently throughout 2022, 2023 and possibly beyond. Current UK base rate is 1%. Current forecasts gained from overnight index swaps point to a 2.25% rate at end 2022. (Source for this info in article below)

https://www.cnbc.com/2022/05/04/bank-of-england-fourth-straight-rate-hike-expected-as-inflation-soars.html

Beyond that I believe that rate will rise further to 3%+ at end 2023. BOE will be in a tight spot as they try to combat inflation without sending the UKs overpriced housing market into a downward spiral.

These rates are not high when you review history however there are a lot of overstretched people and companies out there used to constant sources of cheap credit.

So you are just hoping for a change.

I'd say a reasonable reading of those 2 issues is that UK interest rates will take more than a year to start levelling off. The war also a year or more of devastation and uncertainty to come.