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The macroeconomic outlook is turning against tech shares currently with 10 year treasury yields rising. This trend has been with us before many times and bargain hunters have then stepped in to buy up tech stocks before long.

Best of luck all

Good to see Fitch reaffirms the stable credit outlook for Ocado in the below. Current refinancing involves redeeming some notes and issuing others. Overall though Fitch affirms Ocados credit rating with a stable outlook.

https://www.fitchratings.com/research/corporate-finance/fitch-assigns-bb-exp-to-ocado-prospective-unsecured-notes-27-09-2021

"The Stable Outlook reflects the group's solid financial flexibility, which we believe should enable management to execute Ocado's strategy over the next few years."

Possibly chilting, I think it will last some days longer than that. Either way it doesn't instill confidence. Many will switch to online grocery in the short term worrying that the fuel shortage could return again after this current situation is resolved.

Many worries for the UK government. Focussing on Ocado though rising inflation costs should be passed back to customers. Rate rises are a concern as Ocado will need to raise finance roughly at end of 2022 - rate rise expectations though are still very subdued.

The new 50% increase in Ocado retail capacity is coming on stream at a very good time...

There was a small queue for me to enter the Ocado website today as I carried out my weekly shop. It is very rare that this happens. Looks like the public, in the face of the current fuel crisis, is placing a greater demand on Ocado as they try to conserve the use of their precious petrol/diesel and avoid driving to the supermarket. This heightened demand could stay in place for a while.

Very complex situation for Ocado to deal with currently. CO2 shortage affecting their ability to deliver frozen goods. This issue looks though to be nearing resolution as fertilizer plants resume production thanks to government subsidy. Fuel shortage could start to affect Ocados ability to deliver groceries although Ocado would have a steadier more stable supply of fuel than the general public. Fuel costs will be rising however these costs will likely be passed back to the customer. The HGV driver shortage affects Ocado less than other online grocers due to their more streamlined operating model.

Overall I think Ocado retail will have sustained increased demand for the coming period and should be able to deliver throughout this new crisis and perform a vital service for customers.

https://www.fmj.co.uk/atalian-servest-and-karakuris-robots-to-feed-ocado-staff/

Huge potential in this new technology which is now emerging into mass deployment. Ocado has a minority stake in the company. Bespoke meals down to the minutest detail for customers. Ocados ex CFO is a board member at Karakuri.

More info re modsto123's post -

https://www.retailgazette.co.uk/blog/2021/09/morrisons-staff-face-voluntary-redundancies-as-midlands-store-axes-deliveries/

Morrisons is increasing its reliance on their Ocado CFC distribution centres. Cutting back on Morrisons store pick deliveries.

Ignore the "Goo" below, should say Good luck all!

The Fed are keeping US interest rates unchanged. The 10 year US treasury yield has fallen as I type, see below

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

Lower interest rates means lower borrowing costs. Good news for growth stocks such as Ocado who will need to raise further finance in the future to expand their operations..

Goo

Agreed, these bizarre characters do pop up at unstable times in the share price to sow doubt. Then they vanish.... There's been so many of them over the years on this board.

More upside. The tide is turning...

More information on the proposed Scottish CFC site, see below:

https://rapleys.com/consultation/ocadoeurocentral/

Thanks luckyjim41, That's great information.

Market snapping up the current opportunity...

What do you think, will it be a CFC or a spoke distribution centre?

https://www.glasgowtimes.co.uk/news/19595526.ocado-unveils-plans-build-huge-warehouse-outskirts-glasgow/

The big institutions have lost out hugely during Ocados rise over the last 5 years. I believe they are reticent to take Ocado on and short the share.

There is massive untapped potential in the marketplace for Ocados technology inside and outside of online grocery shopping. Ocado will be investigating all sorts of expansion avenues currently. Many of which could burn the shorters again...

Confirmation the price spike was as I suspected due to CO2 supply issue resolution:

Sky: major CO2 supplier restarts production after government talks
The government has reached agreement with CF Industries to restart carbon dioxide production at its UK sites following talks between the company and Business Secretary Kwasi Kwarteng, Sky News reports.

Share price peaking a bit, could this be re a CO2 supply resolution?

Many trades throughout the day are transacted but not passed through the trading book by brokers until end of day.

Wolfofwarks,

FTSE futures are looking very positive at the current moment so Ocado should bounce up a little today. Ocado is caught in a wider macroeconomic storm at the moment. What I would say regarding the share price is that I strongly believe Ocado management will want the Ocado share price to be £20+ when the next round of fundraising takes place. This is roughly scheduled for latter end of 2022. June 2020 fundraise was at £20 a share. Next fundraise will be hard to sell if the share price is lower than £20.

I believe the Ocado management will manage the business /share price so that the share price is over £20 at that point. They will be looking out for the best new contracts to sign instead of signing up with smaller grocers just to try to inflate the current share price.