Ocado (OCDO) - Share Chat

Since my first reply, the Guardian have done an article:

If I could only quote one paragraph, it would be this one:

Ocado faced a protest vote from shareholders last month after it gave a large pay rise to directors because of the sales rise, even though extra costs meant it was not more profitable. The company is not forecast to make a profit by analysts until beyond 2024, according to average estimates compiled by S&P Global Market Intelligence.

Giving a pay rise despite not being profitable is bad optics :man_facepalming: And being four years off getting there does raise the question of how much is priced in already.

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I remember the first time they broke even, it was on the news and all the high up managers were getting bonuses. They did this by not paying any of it’s staff that week/month. (I worked there at the time)

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Might just sell tomorrow :thinking:

I invested at the start of the pandemic and made 70% which I sold on Tuesday.

I’ve left the original amount invested in for now and I’m in two minds about whether that’s a good idea :thinking:

Whats peoples thoughts on OCADO with the Amazon news released that they are broadening their food delivery in the UK? (Looks like city centric but still an impact)

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I’ve held Ocado for a little while now - my 2c is that although the UK retail part of their business will always be tricky to dominate - their biggest strength for me is their technology roll out for other retailers overseas - their Kroger deal in the US for example is working really well and expanding. So I feel personally their warehouse platform is being honed in a very competitive market (UK) but their biggest advantage is distributing that to partners in new markets where they are the infrastructure provider. It’s worth looking into that side of the business too if you are looking at Ocado as an investment.

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I invested in March and made 60-70%, selling my last shares on Tuesday.

I think they are a solid investment long term but I’m happy with my return and want to put the money elsewhere.

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Any price forecasts for 2021?

I’m planing to hold long term, but I do think it may take a few years to see the rewards from partnerships in America, France and Asia.

Some news on this company coming out today

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Are they announcing somewhere?

Ocado are opening another CFC depot very soon so the delivery’s will increase as will now reach more in the uk
I work in the flag ship depot CFC4 and I can assure you the technology they are developing and selling around the world is worth the long term investment we are regularly doing trails in different departments and some things stay as a permanent fixture and some things go but from working on Amazon to working at Ocado I believe Amazon will get pushed out of the tech race at some point in the future

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Thanks for you insight. Ocado’s US CFC’s will be operational at various stages through this year also. How much more productive does the robotic’s aid in CFC construction? Any news on have vertical farming facilities alongside their CFC’s?

Down 5% today despite growth in sales.

Ocado themselves think that when coronavirus travel restrictions ease, they’ll be able to sell more of their warehouse tech.

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Decent long read, from wired.co.uk.

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Interesting read

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I haven’t read it, but the price of robots goes down over time, whereas the price of humans does not, wages roughly follow inflation.

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Yep the people who say robots are too expensive suffer from selective memory or something. I remember when a rubbish computer that had blocks ping ponging across a screen was an expensive bit of kit. The cost of even what a couple apps on an I-phone could do a few years back would be huge.

Once in mass production these robots will be cheap as chips so to say :+1: The big cost will be the explosion in extra metals/materials needed as the robots will be used in all aspects of life.

On the other hand, robots do not pay taxes, do not consume and consequently do not heat up the economy. So this could become a problem in the (hypothetical) case of having too many robots in uses in place of humans, but I don’t think we’ll get to this point.