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If you look in narrow terms of assets and dividends this and any other growth company will befuddle a traditional investor.

Tesco is a very good grocer and will continue to be so. The future for Ocado is potentially far brighter though. It is primarily a technology company with a small amount of online retail mixed in. Ocado supplies it's technology to 8 large overseas grocers. It has exclusive contracts with Kroger (the largest grocer by revenue in the US) etc etc. Its technology is extremely valuable and is already breaking out into new growth areas for Ocado (robotic picking in fashion warehousing, vertical farming, robotic chefs etc).

Ocado valuation is all about forecasting the future value and expansion of its technology. 5 years ahead from now and their worldwide CFC network will be built, operating and bringing in very large profits.

Takeover always possible but it's not obvious who would buy Ocado. Amazon seems initially a good fit, they desperately want to expand their online grocery offering that isn't flourishing currently. However the partnerships formed with Ocado by overseas grocers are in large part a defensive position to the threat of Amazon entering and expanding into their markets. I can't see Kroger/Sobeys/Aeon etc being happy to have Amazon as their sole online grocery partner. Money talks though, there would be a way for Amazon to satisfy all in a takeover of Ocado.

Many other possibilities. Kroger itself. Uber. Alibaba, Pinduoduo, Instacart etc. So many companies desperately wanting to ramp up their tech in the race to be the biggest and best in online grocery delivery ...

"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett

The biggest 2 shareholders of OCDO have bought over £100m of Ocado share recently. They see opportunity where others lose patience....

Answer to the survey:

Before the pandemic: I spent 95% on online grocery delivery.

In the pandemic: I spent 95% on online grocery delivery.

Right now: I spend 95% on online grocery delivery

After the pandemic: I will spend 95% online and 5% on in-store shopping.

I only visit supermarkets to occasionally entertain the kids/ visit the cafe or buy an urgently needed item. I shop primarily online with Ocado and am always impressed by the better range, longer expiry of items, on time delivery and courtesy of the drivers compared to other supermarket grocery deliveries I occasionally have.

USA - In the Food & Beverages segment, 1% of total market revenue will be generated through online sales by 2023.

Ocado have a huge contract in place there with Kroger. 11 CFCs so far and growing..

All of these markets are growing online grocery market share and will continue to do so. Many, many further opportunities out there. Contracts need to be signed though with the right partners at the right time.

Canada In the Food & Beverages segment, 1% of total market revenue will be generated through online sales by 2023.

Ocado have a big contract in place with Sobeys in Canada...

Etc etc

France; In the Food & Beverages segment, 1% of total market revenue will be generated through online sales by 2023.

Ocado have signed an existing big contract in France, similar online market stats to Germany....

The German market is small but the German market is growing faster, 6.8% versus 4.8%. A key part of increasing online grocery rates is the introduction of better services. Ocado for instance has more range, is more on time, less waste etc etc. When the consumer is exposed to quality online grocery service then the market really motors.

Very old figures you are producing there - 2017. So much has changed since then.

Even in those figures though online is growing the most "The online channel is set to grow the most, by 244.4%". It's why REWE is investing hugely in trying to satisfy the online grocery demand in the country.

I have shopped in Germany. They are slow to change to online grocery but the trend is upward. Huge opportunity there as these habits continue to change. Other grocers , REWE for example, are investing very heavily in robotics, CFCs and Ai. Other grocers will need to catch up. A chance to have an exclusive countrywide contract with Ocado would be very appealing to them.

The crucial part for Ocado is that simply signing new contracts here and there is no good. Ocado needs to sign contracts (as they have done so far) with truly ambitious grocers who value innovation and are totally committed to the online revolution. Much better to wait for the right partner than to sign a poor contract.

There are challenges in Germany certainly but REWEs model is beatable and Schwarz group (Lidl and Kaufland) are behind where they could be online having abandoned early attempts to be leaders when the online market proved to be unprofitable for them. It's unlikely Ocado would go it alone in Germany but I like their thinking. If they can't find an ambitious partner then why not create their own opportunity. Certainly there could be collaboration opportunities in other areas/ countries with Marks and Spencers.

I believe why Tim gives this interview is that they've sounded out further partners in Western Europe and some are not willing to be as ambitious with Ocado collaborations as Ocado would like. So Ocado are keeping them on their toes by saying if you miss your chance to form an exclusive contract with Ocado then they may well move into their markets by going it alone or with a foreign backer.

Of course. The track record of the biggest 2 shareholders is exemplary. They are buying large amounts again, not selling. Make of that what you will. Opportunity knocks..

The biggest holder of Ocado shares is London and Amsterdam Trust group. They have bought recently over £50m shares recently. Noone from the group is a director on Ocado's board. They and others are pouncing on the opportunity that the lower share price presents...

Great, sit on the sidelines then. The biggest shareholders see the opportunity cleary and are locking away big further chunks of shares...

The largest Ocado investors are piling into the shares currently given the opportunity the share price presents. When there is certainty Ocado shares will have flown higher....

The CFCs take time to build but the technology improves daily and as more CFCs are built the build time is further optimised and reduced. As Marks and Spencers have outlined, when the CFCs are up and running it is a very profitable platform. The market is further expanding, leading to further opportunities.

REWE use Knapp technology. Their technology is not as advanced as Ocado's. The German market is huge and less developed online than the UK. Room for other players there as long as they are streamlined and cutting edge..

The largest 2 holders of Ocado shares have recently bought an extra £100m in shares. Lots to look forward to as French, Canadian and US CFCs are now fully open and the slice of their turnover flows to Ocado. Every chance of a new additional international deal in the coming months.

https://www.ft.com/content/e0e1e9a2-b617-45a6-8dfe-06feeff0b6de

Interesting interview with Tim Steiner. He reveals Ocado are thinking over entering new markets themselves if there isn't a suitable partner in that country. Make sense as the demand is there but in some countries the right available partner isn't available.

Financing would be far higher but I would have thought Ocado would set up a new venture in a new country in conjunction with an overseas retailer ie enter the German market with an Ocado/Kroger joint venture. Not something that will happen soon just ideas for the future.

When it's intelligent comment that's fine. When it's deliberately misleading/ incomprehensible or it's nasty personal attacks like the one on Kslonee then it has no place, anywhere.

The Ai revolution in warehouse management has certainly picked up speed. It's gone into hyperdrive, expanding hugely due in part to the pandemic. This is great news for Ocado and its technology which can be used to revolutionise many other areas outside online grocery fulfillment.

There are many, many robotics companies working in the collosal worldwide warehouse management industry. By OW robotics own admission Ocados pick rates are faster than OWs and are at the absolute cutting edge of the industry, see article below:

https://www.owrobotics.co.uk/2021/02/08/picking-rates-across-the-sectors-where-do-you-stand/

OW spend £2 mill a year on their software development. Ocado spend 50x more than that. They are very different companies in scope and innovation.

As always it is vital that Ocado reinvest in their technology and innovate further to stay ahead of the competition. The complexity that Ocado deal with in robotically fulfilling customer grocery orders is far more complex than most warehouse challenges. Temperature, fragility/expiry of goods, shapes far more challenging to deal with than boxes etc.