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Cheers for posting that article SFH300, a v interesting read

Cheers for that Casapinos, that article is a little old and incorrect though. Here's your quoted article below

https://www.juve-patent.com/news-and-stories/cases/autostore-and-ocado-robot-wars-has-more-twists-in-the-tale/

Actually the Autostore v Ocado UK high court case started on the 15th March as stated in more recent article below:

https://www.standard.co.uk/news/uk/ocado-poland-high-court-warsaw-spain-b988124.html#amp_tf=From%20%251%24s&aoh=16481443383801&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.standard.co.uk%2Fnews%2Fuk%2Focado-poland-high-court-warsaw-spain-b988124.html

Today move could be re the court case. I remember reading that the UK judges decision will be around 3 months after the court case ends though.

Halma, I've not voted at an Ocado AGM. There hasn't been a knife edge situation where I've thought I could make a difference by casting my vote.

Best of luck, a good rise today to see us into the weekend..

Of course what both of us did not predict was the enormous current global supply chain constraints currently and a seismic Russia/Ukraine war which is pushing up fuel, energy to vast heights. Understandably there has been a very large reduction in risk by stock market investors recently. Predicting what happens next in global affairs is very unclear...

Compared to prepandemic, 2019, online grocery has risen greatly as a shopping method of choice for consumers. That trend has of course declined as lockdowns have lifted etc but consumer habits have permanently changed. Online grocery now is a much larger shopping channel.

As you are neither short or long Ocado shares there is little point in a long discussion over the merits of Ocado. You have your view which I respect. Personally I am very happy to have picked up more Ocado shares at a low price yesterday.

Throw around lots of predictions and theres always a chance one may come true... Of course you'll not mention/ignore the ones that have sunk dramatically..

Hedged,

You also made other predictions. Mid last year on this Ocado chat board you were recommending the Amigo (AMGO) stock that you held, saying it would be at 100p by Xmas.

It is currently at 4p a share...

Goldman Sachs cuts Ocado price target to 1,475 (1,500) pence - 'neutral'

Indicating they also see yesterdays market reaction to Ocados trading update as overdone..

Good points Pokerchips,

To add... Ocado group have bought out US robotic arm picking companies Haddington dynamics and Kindred Solutions. Kindred already had robotics contracts with several multi billion dollar clothing companies, Gap and American Apparel to name a couple of their clients. The fruits of buying out those companies are now on display as they have been central in developing on grid robotic picking for Ocados grocery solutions.

Ocado has a majority holding in Jones food company. Jones run the biggest vertical farm in Europe and are now building the biggest vertical farm in the world in the UK. Ocado will soon robotically enhance vertical farming and integrate it to their CFC builds so they can provide ultra fresh food.

When buying Ocado shares you are buying a share of what they are doing now and a share of what the company will be doing in the future. Which could be all sorts of possibilities. After mastering the huge complexity of online grocery automation with its different temperature needs, fragility, thousands of different shapes, perishability etc, then Ocado can move into all sorts of other areas with their technology..

Casapinos,

I respect your view, we differ in our view on how large a percentage Ocado receive on goods passed through their overseas CFCs. The contracts are not public information so we cannot know for sure. Ocado enables Kroger to sell in completely new geographies, to complete automated orders night and day robotically without impacting their store offering, enables them to sell the broadest range of items on the online grocery market and crucially gives them an offering that more than competes with Walmart and Amazon in terms of efficiency and accuracy. Kroger have bought up 6% of Ocado as the company is so valuable to them. It is helping driving their online sales ever higher...

Bayobach,

Splitting out tech and grocery retail for the Ocado group doesn't make sense currently. I'm guessing you mean split the retail off in an IPO. There would be large costs associated with this and Ocado only own half the retail venture.

Better option is for Ocado to sell off their side of the Ocado retail joint venture. Marks &Spencer's are the only possible buyers for some more years. There was a clause in the contract when the JV was formed. With retail being in such a tough place at the moment I cannot see a bid by Marks coming soon.

Pokerchips,

The pandemic has brought about a huge increase in online grocery shopping across the globe. A big portion of that new consumer habit will remain. So compared to 2019 the market now is far larger and the profile of online grocery is high. 2022 does indeed present an incredibly tough retail environment for so many reasons.

The need to automate though will remain and will not wither as grocers try to stay ahead of the competition and control labour costs.

Best of luck to you too

Agreed Bayobach. You are now looking at the wider picture rather than the recent slide.

Casapinos, the 4-5% is only payable on goods that pass through Ocado powered CFCs. This CFC volume of goods is a small fraction of Kroger's total turnover.

Casapinos, Kroger have already bought 6% of Ocados stock. Very possible that they could raise their stake further..

Pokerchips, Any new CFC builds will add extra capex. Most of the CFC capex costs occur between the 18 months prior and the opening of the CFC. This is the build out phase.

Casapinos, Kroger are saving on distribution costs and opening in geographical markets where they had no presence thanks to Ocados tech. The Kroger CFCs are relatively newly open and are ramping up to full capacity. Future results will show greater ongoing fee revenue receipt from them.

Some new contracts are assumed to be signed. Depends on how you value each contract to say how many are already factored in. There's a wide range of estimates re this from analysts.

The more new CFC build contracts Ocado sign the more they will need to fundraise. Ocado have always been open about this information with shareholders.

I believe there are system maintenance costs payable to Ocado on top of the ongoing percentage item fee.

You've quoted current CFC figures of £10mill per site. Remember though that many of the current overseas Ocado CFCs have only just opened (so few fees have been received by Ocado) or are not ramped up at full capacity. This figure will expand in time.