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Casapinos, The latest results surprised me, they showed encouraging signs, a departure from the run of recent results til then. End of Autostore hostilities is another plus, £200m very useful funds for Ocado and the whole process vindicates Ocados strong repudiation of Autostores claims from the beginning.
I'm not invested in Ocado currently, am fully invested elsewhere, however I am always looking over Ocado.
Best to all
(Nedre Vats, 22 July 2023) - AutoStore Holdings Ltd (AutoStore, OSE:AUTO) and
Ocado Group (Ocado, LON:OCDO) announced today a complete settlement of all
claims between the companies in their global patent dispute, avoiding further
litigation and associated costs.
The principal terms of the agreement are:
? All patent litigation claims withdrawn globally
? Mutually beneficial global cross-licence of each other's pre 2020 patents
? Both companies can continue to use and market all their own existing
products without challenge
? Ocado retains exclusive rights to the Single Space Robot
? AutoStore will pay £200 million to Ocado in instalments over 2 years
Whilst the agreement gives both companies access to parts of each other's patent
portfolios for them to use or develop their own products, it does not provide
for collaboration or technology assistance between the companies or access to
actual products.
The other terms of the agreement remain confidential.
Tim Steiner, CEO of Ocado, said: "I am pleased we have been able to settle the
disputes in a constructive and collaborative manner. We can now each move
forward and concentrate on providing our partners with world beating
technology."
Mats Hovland Vikse, CEO of AutoStore, said: "We are glad to have achieved a
resolution that gives both companies opportunity and freedom to commercialize
our extensive patent portfolios. This settlement resolves our differences and
allows us to continue focusing on our respective business goals."
Will be another disappointing results release tomorrow imo. Further basket size shrinkage at Ocado retail. Lower market share. More losses
Re Ocado Solutions I expect costs to be higher than expectations. No new customer sign up news. Some delays in grocers building out their CFCs pushing potential profit point further into the future.
The Amazon takeover rumours have been circulated many times over the years. Personally I can't see it happening this time. Macroeconomic conditions still very much against Ocado. Driving up costs rapidly across the business. Consumers continually switching to cheaper lines. Grocers looking for cheaper solutions, concentrating on their core offering. Ocado retail lagging and losing further market share as I'm sure will be confirmed again in the next results..
Paultokyo29,
Well done on topping up at a great price this morning. I'm a holder. Saw the results this morning and thought they were impressive. Could have been that the market was expecting even better results hence the drop at the open. Anyway this company looks to be still thriving and growing. I'm very happy to keep holding..
Yes, good uplift in Ocado shares performance. The court win gives a stronger foundation for the stocks price. Tim Steiner's recent comments below were a very big positive. Before that there were grave doubts as to Kroger's expansionary aims with Ocado CFCs.
"They are committed to building more, they just want to make those (existing) ones work as well as they can before they roll out loads – very sensible thing to do," Steiner told reporters.
He said Kroger remained "extremely positive" about the relationship, noting he visited the firm last week and will again in two weeks' time.
"They expect to have loads of these warehouses. But when you do something new, you need to make it work really well before you scale it up massively," he added.
The gap between current capacity and capacity being built out versus sales and forecast sales is huge. It has been a big miscalculation and Ocado are committed to building out these facilities and cannot uturn without large costs. Its a huge issue that will crimp Ocado retails profitability for a long time to come..
It's widely known that at Ocado retail "The gap between capacity and the actual level of sales at Ocado is enormous."
https://www.theguardian.com/business/nils-pratley-on-finance/2023/feb/28/the-long-term-seems-to-be-getting-longer-for-online-grocer-ocado
The cost of servicing, maintaining this excess capacity, which is in the wrong geographic areas is huge. Meanwhile in other areas of the country Ocado retail still has no presence...
Ocado retail can't afford to expand currently. They've overexpanded in the South of the UK creating excess capacity whilst leaving large areas of the UK without an Ocado presence, Scotland for example. The capacity has been built in the wrong places, creating ongoing cost. It will be a big drag on profitability for many months to come..
Another set of ordinary, underperforming results from Ocado retail. Revenue trailing inflation. Average basket size of items in a typical Ocado retail order falls again..
Ocado retail has cancelled plans to build any further CFCs. It has built overcapacity in areas of the country where it was already present. More underperformance to come from Ocado retail imo. Recently they have been swallowing some inflation costs at Ocado retail instead of passing them on to the customer. This drives up customer orders but eats into profitability...
UK trading conditions have been extremely poor however Ocado retail management have compounded these issues by poor management decisions. Choosing to go for huge expansion in currently served Ocado retail markets rather than expand into new ones in the UK has been a very costly decision. It has left Ocado with no presence in some large areas of the UK, Scotland for example. Currently there are no further funds to expand into those areas leaving Ocado to miss out on these lucrative markets.
It has also left Ocado retail with huge over capacity in its stronghold areas as basket sizes have dropped, orders have not risen to fill the new capacity. CFCs operating at below capacity, incurring large servicing, maintenance costs.
Next Tuesday will confirm further underperformance at Ocado retail leading the shares again lower...
You are the king of wishful thinking chilting, as below lol
https://youtu.be/XBZUz4C6kqk
Dow futures now down 326pts...
"A decisive end to the Banking Crisis could be on the cards by Monday morning"
This banking crisis is bigger than Credit Suisses troubles. Many regional banks in the US have slumped dramatically. Issues at other banks likely to emerge..
FTSE futures as I speak pointing to a modest 20pt rise for the FTSE 100 on Monday. Personally I believe Ocado shares have further to fall. Ocado retail trading statement is on the 28th March. Extremely likely to report more of the same, reduced basket sizes, lower sales guidance, customers switching to cheaper product lines...
Mapper is right if you look at your info closer chilting. Current shorters such as Whale Rock are still overall at a loss re their historic Ocado short trades.
Shorters lost out hugely in the Ocado share price boom years. Continually being burnt and helping the share price propel upwards.
Shorts are part of the ecosystem. To focus on them detracts from an investigation of the real issues...
- Ocado retail and Kroger halting CFC expansion.
- Ocado retail racking up ongoing losses.
- Rising costs across the business.
- Shoppers moving away from big basket shopping - Ocados tech is focussed around big basket shops.
Above are just some of the huge issues driving Ocados share price down. Shorts get blown away when performance rises. On this occasion though I can see shorts continuing their recent profitable run..