[On :freetrade:] Ocado (OCDO)

Couldn’t find a topic about Ocado, so thought I would make one.

News today is that they are partnering with Japanese retailer Aeon: https://uk.reuters.com/article/uk-ocado-aeon/britains-ocado-signs-technology-partnership-with-japans-aeon-idUKKBN1Y30KT

A string of interesting news then, as it follows announcing Ocado’s first “mini” robotic warehouse in Bristol:

Identifying Bristol as big enough to sustain what Ocado calls a “customer fulfillment center” (CFC) also triples the number of addressable cities for Ocado.

Shares in Ocado were up 0.9% at 0903 GMT, extending gains this year to 49%.

I should’ve kept my shares. :slight_smile:

1 Like

And their deal with Aeon in Japan too :slight_smile: Nice 10% jump overnight!

1 Like

Another boat I have missed :unamused:

Down over 8% today:

Disclosure: I wrote the content at the links below

Ocado has developing competition for microfulfilment (smaller distribution centres that can sit in urban centres closer to customer homes): TakeOff are building 50 centres in the US. Alert Innovations have a trial with Walmart in the US. Fabric (was Commonsense) have 560 m2-sized centres in Israel. Etc.

Ocado’s 13 month build-out sounds quite slow compared to some of these, but you’d guess there will be plenty of space for companies in this category.

(Of course the logical end point of putting distribution centres ever closer to the last mile might be that they become convenience stores. Or Amazon eventually just builds the warehouse around the city, which it is effectively trying out with its temporary pavement distribution efforts…)

Feels like I’ve missed a good entry point into Ocado.

1 Like

Really don’t think so. For one, it’s over 13% below its year high.

Ocado is a super long term play and I think there’s still a lot of potential upside.

I’m hoping this news along with the partnership with M&S will help my growing M&S position

I think Ocado is the only UK share that own. I have some AstraZeneca as well.

Are there any other exciting technology companies of their size in the UK? I see them more of a provider of autonomous systems than a grocery store.

1 Like

Agreed, it’s their fulfillment tech capabilities that really add value to Ocado

I’m going to be buying Ocado this year, don’t have a position yet. I’m tempted to put some in next week before their results on the 11th. It would be a long term position for me anyway.

Have a look at Aveva.

2 Likes

Thought you’d spelled Aviva wrong :see_no_evil:. Nice, I will check them out.

:joy:

In my portfolio I have Aveva and Aviva, Shopify and Spotify. Sometimes it gets confusing!

1 Like

Results today. Headlines typically dealing with the impact of the fire, but share price largely unmoved.

2 Likes

Ocado down 4% today. Not exactly sure of the reason, but it might be a reaction to the stupid levels of executive pay.

I generally dislike bonuses linked to share price, because share price can be unmoored from reality.

Ocado is super busy at the moment.

Delivery slot availability is less than half what it was: normally on a Sunday I can book a delivery for Tuesday, but the earliest I can get right now is Friday.

Perfect conditions for Ocado to capture more market share.

1 Like