Ocado (OCDO) - Share Chat

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.

We also need to move away from gdp defining success

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Anyone surprised to see the returns from the international solutions to be so low and no real expression of this changing much in the near term??

Kinda got me thinking , when is this going to be profitable??. We’re spending a lot of cash for very little expected return.

8.5% is hardly that great

They now have 10 partners of which, not all have even got an operational CFC. Additionally, The ones that are operational have got a few more in the pipeline. The international solutions revenue will increase when more CFC’s are operational and flowing groceries.

There are articles predicting Ocado to be profitable in 2024. This is a long-term play.

Also their vertical farming investments are still to be utilised for commercial scale. Ocado has said their investment in 2019 is now worth double. See in this article: Ocado to fund new vertical farm near Bristol as sales leap - Business Live

Thanks Michael.

I really like the long term prospects of Ocado. What I have been trying to work out is how profitable is the business going to be?

Looking at yesterday’s results I get a bit worried I have over valued the income ocado can charge per fully running CFC.

I think there are 54 Planned CFC currently being planned across the partner companies.

50m a year per Cfc in income only gets us to 2 billion.

That’s a lot of capital needed and slot of skills to set up each Cfc ( I personally know they struggle to get the recruitment they need for the projects )

We need to see double if not triple that for the growth we want from this share.

So in essence… Love the long term potential of this but think in the near term we might see share price drop back to the £15 mark as other invests look for short term rewards.

:smiley:🏴󠁧󠁢󠁥󠁮󠁧󠁿:soccer:

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Think many Ocado investors have the same thoughts as what you’ve mentioned. Well if it does go to £15 it’s a buying opportunity.

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Fire at the Erith warehouse after 3 robot collided. Doesn’t looks as bad as the last one but could be a catalyst for further a further price drop.

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Are these robots built out of fireworks like the computers in Star Trek?

image

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Erith is now 99% operational so very little customer disturbance. From what I hear the management are pretty happy the learning from Andover fire worked as expected.

More interesting is the relationship with Kruger’s share price.

Just shows you how dependent we are on our big deals working.

So so much growth available, can we do it ?

:crossed_fingers::crossed_fingers::crossed_fingers:

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Did you mean “Kroger”?

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Welcome to the community

https://images.app.goo.gl/owcNcdQtnNKHT8ji9

We always need people on here who spot fat fingers.

Pleasure to have you aboard.

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