Member Info for Valueplay

A clever, innovative marketing partnership by Ocado

https://www.theguardian.com/gnm-press-office/2021/jul/02/the-guardian-partners-with-ocado-to-create-a-ground-breaking-shoppable-experience-that-helps-readers-get-the-most-from-its-recipes

https://www.reuters.com/business/retail-consumer/britains-morrisons-agrees-87-bln-offer-fortress-investment-group-2021-07-03/

Will be interesting to see if Amazon make a counteroffer now. Interesting too to speculate what the future is for the Morrisons/Ocado deal with Fortress investment group as owners...

Jimmyroyal,

You really need to reassess whether you believe in this company. If you do not then you should sell (I have suggested this several times to you previously). Personally when I first bought Ocado shares they dropped after I bought and did not exceed my buying price for over a year. At times they were well over 30% down. What kept me going? The research I had carried out on the company, the opportunities I saw for the company and my belief in its management.

There's a very high probability that next week will not be a "boring week" as you put it. With half year results out on Tuesday the shares could well rise/fall appreciably.

Will the Ocado share price hit £28 again? I believe so, at what date though I wouldn't like to say. Ocado have built an extremely impressive record of success over the last 4 years, I personally see this continuing.

Ocado could have taken an easy route to profitability. Kept going as a leading online grocery retailer, declared good profits, paid out dividends etc

However during their development as an online grocery retailer they saw a huge opportunity. If they could develop their own online grocery tech this could then be sold around the world and they could evolve from a retailer into a tech company. This evolution is still occuring. The big profits are 3/4 years away. When the existing CFC builds are complete the profits will ramp up. Ocado have clearly realised if they maintain their tech as best in class then they will attract more future partners around the globe. The profits in the future are huge for those that are the best, those that are second best will fade.

This desire and focus on being the best means reinvesting current Ocado retail profits and additional finance currently to maintain the tech to be ahead of key competitors, ie Amazon. Realising this huge opportunity ahead is a key realisation for an Ocado shareholder in order to understand the companies drive and focus.

Another point is to, where possible, be a customer of the companies you are invested in.

I have been an Ocado customer receiving a weekly delivery for 3+ years. It has given me a regular chance, apart from enjoying great super fresh food, to assess the website, range of products versus the competition. The way Ocado packs the shopping and packs goods into cupboard, freezer, fridge bags for example is very innovative. Small things like a weekly chat to an Ocado driver can give some valuable insights into the company.

If you're investing x thousands of £ in shares it's worth spending a few £ on being a customer and experiencing things first hand.

Yes, this income will be at a low level with only a handful of CFCs open overseas. Interesting to see how it compares to estimates. Major issues to look out for are info regarding how the rest of the CFC builds are going in US, Japan, Australia, Sweden, Canada. If all's going to previous plans that's fine. If any delays or increases in build costs then that could hit the share price.

Any changes to group capex, information regarding other ventures particularly Kindred systems progress and how UK retail revenue growth is performing are all issues to look for.

Best of luck with those shares bitbybit. One tip - have a conviction rating for each share, a mark out of 10. Review these ratings periodically. The rating should represent how you are feeling about the relevant companies prospects, management, trading outlook etc. When a share has a very low conviction rating in your mind then it's a good time to review the share and ultimately, if you have lost faith in the share, sell it. Holding shares that you don't believe in is very tough, it plays on your mind. There can be so many twists and turns in share prices, much better to be invested in companies you truly believe in. That gives the ability to ride the waves with clarity of thought.

Best to all

Depends on ones risk appetite. The more shares you own generally the lesser the risk and lesser the return. Over the years I personally have felt more secure overweight in Ocado than having broader stock market investments. The meticulous level of research I have undertaken has given me peace of mind and great trust in the exceptional Ocado management. The pandemic has been a huge opportunity for Ocado where many other companies have floundered.

Yes, big bounce off the steep fall to 1964p. Reminiscent of the intraday chart for the recent days in which (apologies for mentioning it again) the 2 major Ocado investors bought £100m of shares between them. Share price fell
those days day then was bought aggressively at the lower level. Share has run out of steam a little but there seem to be still buyers in the lower ranges keen to buy up when the price dips. Some big players are clearly anticipating good results next week...

That's conventional advice modsto123. There are many successful investment strategies though. Personally I have been overweight on Ocado shares for many years. This strategy has paid off handsomely. If I see something, research it thoroughly, dissect it, discuss it and it appears to be a stand out winner then I'm not afraid to back it...

Absolutely. And that is something that always at the forefront of Ocado's management strategy. They are not chasing short term profits. They are planning for the huge windfalls ahead as year by year consumers further adopt online grocery.

Those windfalls though will only go to the key players of the future. To maintain their position as a lead innovater Ocado need to keep reinvesting in the business to the maximum. Sharpening their tech as others try and replicate it.

Cheers bitbybit,

Welcome to the board. It's been a rough ride since last October but I believe there's a lot more upside to come from this company. Results day next week eagerly anticipated. Hope you can post again.

Then it bounces up. Someone's snapped up a great buy price ahead of the results ...

The momentum has gone currently. Hard to see what's caused the shift. When holding Ocado shares there are so many twists and turns, volatility usually high. Still a hold for me.

Thx chilting, yes ploughing through those docs is hard. At least you've found us the info though, that's great.

Yes, slightly out of place today's drop but it's a down day overall for the market. Bouncing back as I type though.....

Below looks like another positive move for Ocado. I cannot access the full article. If anyone else can could you please copy and paste it back on this board. Thanks!

https://www.law360.com/articles/1398583/ocado-gets-ptab-to-eye-another-patent-involved-in-itc-case

Welcome to the board Halma1983,

Looking good currently. We're here to discuss it all. Hope you can join in.

By the way did you know that the largest 2 shareholders (lol)...

They may close the short. However remember that after Ocado's final results release on 9 Feb the share fell from £27 to the high £18's it was at recently.

I believe things are different this time though. Tech share market conditions are much better currently and the shares are at a low level.

Englands win will lift UK retail sales figures a little. Great chance to progress now. Ocado retail should get a slight boost. Ocado have no German contract so no damage there.

Nasdaq up since UK close currently. Best to all.

Thanks MrHold.

I do my utmost to keep both myself and the board informed of relevant Ocado information. As a group, with all our diverse insights and knowledge, we can support each other and dissect the information to our collective gain.