Member Info for waccybaccy

Exactly my thoughts TomTomTrader as I posted yesterday. Their mind will be refocussed, hopefully on Ocado roll-out, rather than preparing for a massive takeover of a competitor.

Boyo etc, please keep up the critical posts and ignore those who whinge and whine. The posts are really useful and better the devil you know.

I think it's highly unlikely any messages on this tiny amateur forum affect the share price anyway.

Plus separating Solutions into its own entity of course!

I've been thinking hard about Lingotto. What do they stand for? It's quite a new company.

Someone called James Anderson joined in May 2023 and then Lingotto got involved in Ocado literally a month later (5% stake would be roughly £175m). James Anderson worked at Bailie Gifford who did well by investing in Amazon and Tesla.

https://www.ftadviser.com/investments/2023/05/15/baillie-gifford-s-james-anderson-joins-investment-manager/

A company called Exor own Lingotto. In August, Exor bought a 15% chunk of Philips for $2.8B. It said in September that it had $2.8b spare for future investments:

https://www.reuters.com/markets/europe/exor-has-2-bln-euros-available-cash-left-investments-cfo-says-2023-09-14/

Exor also "controls" Ferrari and Juventus. More on it here:

https://www.ft.com/content/b32ae4a2-b302-4b63-a2d9-2ca80084c847

I suppose what I'm really wondering is, as the price drifts downwards, will Lingotto increase their stake in Ocado?

Yes, please provide a link to said interview.

Could be... the aim of the takeover was surely to increase earnings per share or efficiency. If that is the ethos maybe we can be optimistic that they will go all in with Ocado tech. That said, I did read they are still ironing out the wrinkles of the tech so perhaps once that is sorted out they will automate more.

I am impressed at the 44% increase in Solutions' revenue. I thought it would be much much less of a rise given that most CFCs were in limbo and the only successes were the Canadian chemist who is trialling Ocado tech, and that Saudi supermarket also giving it a go.

The big worry for me is that Kroger are not going full steam ahead with Ocado tech despite their alleged strong partnership.

I honestly prefer hilarious bulls*** posts like this to the:

-"Why is the price down" (price goes down 0.5%) or

-"What are people's price targets" or

-"I just bought xxx shares"

vacuous posts.

I have so many people filtered now it's getting stupid. Like the people I filter.

Price targets are irrelevant in a sentiment-driven stock like Ocado.

Thank you Valueplay.

I hope Ocado's value will be realised soon. My dream would be for Ocado *Solutions* to be listed on the US stock exchange. I have no idea when this could happen but the time is surely ripe.

At the risk of posting too much today.... what does the "Deconsolidation of Ocado Retail" mean? Is it simply some administrative rearrangement of no consequence or could it pave the way to Ocado Solutions being spun out as a separate entity (as we all would like to see I expect!)?

This is the text from the RNS:

"Ocado Group plc and M&S are both joint equal shareholders of Ocado Retail Limited. At present the results of Ocado Retail Limited are consolidated into the results of Ocado Group plc as Ocado Group plc are deemed to be the controlling shareholder via certain tie-breaking rights. Our current intention is to give up those tie-breaking rights to M&S in early April 2025. There will be no change in the economic interest of both shareholders in Ocado Retail Limited, or any consideration paid by M&S, as a result of this proposed change. After giving up the tie-breaking rights to M&S, we expect that the results of Ocado Retail Limited will cease to be consolidated into the results of Ocado Group plc and will instead be equity accounted for as an investment from this point onwards. From this point, M&S would have the right to consolidate the results of Ocado Retail Limited pursuant to the terms of the original Shareholder Agreement signed in August 2019 when the Joint Venture was formed."

Okay, so my assumption is that Ocado changed the way they present accounts (to IFRS 13???) and as a result have to make this deduction to balance the numbers.

Okay, so separate to revenue.

That £67m is quite a lot to lose... what does that practically mean? Is it part of the fee that they think M&S will not pay them? Or is it loss of goodwill in Ocado Retail?

As title. £187m paid by Autostore to Ocado but which revenue figure is this included in?

If it is part of Solutions revenue, that suggests that Solutions revenue apart from that payment has actually decreased.

Much appreciated!

Incredible post. Thank you for your service good sir!

Definitely a steady day! The graphs never lie right? They are soooo reliable.

I have to agree that the drop was overdone today.

That said, this should be drifting down and definitely not up IMO given the lack of uptake of new CRCs. Kroger has stopped expanding their CFCs to be "sure that we have a clear path" whatever that means.

This is a sentiment-driven stock and there is naff all positive going. Hasn't been since about a year ago.

"increasing all the time"... you should get a job in marketing!!!

Last time I checked their biggest customer Kroger had stopped expanding use of Ocado kit! Sept 2023

https://www.grocerydive.com/news/kroger-ocado-grocery-cfc-delivery-pickup/693287/

The future is uncertain and more so than it's ever been for Ocado.

Okay, so we would expect Alison in the next few years to start making decisions on property and if she decides to keep them, that's 1-2B extra to be spent. Now let's see some of that strong leadership!

M&S is saving £197m so not too bad for them. Weird thing seems to be from my reading that the payment was dependent on results to November 2023 however it was due to be paid in August 2024. Source:

https://www.sharecast.com/news/news-and-announcements/ms-withholding-multi-million-pound-payment-to-ocado-over-performance-failures--16315488.html

The solutions stuff grew by 59% in the half year results in 2023 so clearly that is where the money is. That said, Ocado has been going almost 24 years so those basic patents must be expiring in the next few years.

Ocado half yearly report 2023 was released 18th July 2023 so when is the next one due?