Get in there

Just to crow a bit. On the 25th (actually written a couple of days before) I tipped Ocado. On the following basis:

I don’t think the market is properly appreciating this move away from low margin and into potentially high margin business. I therefore think that there’s a good probability of a rerating of the stock over time. As with the gold rush, selling the tools is a better business than digging for it. And there’s an awful lot of supermarket chains out there in the different retail markets.

The price was 1,152p. Today we see:

Japan’s biggest supermarket chain has called on Ocado to build its new automated warehouses, even though the country leads the world in robot technology.

The deal, which marks the British technology and online retail group’s first move into Asia, lifted its shares by as much as 22 per cent yesterday before they closed 117p, or 9.7 per cent, higher at £13.25, valuing it at £9.5 billion.

Pure blind luck as a tip of course but fun all the same.

12 comments on “Get in there

  1. pity your not permitted to have a little play. Are there some Seeking Alpha HR bods, who put all their pickers’ picks in to a virtual position and they can give feedback on how their ‘portfolio’ is going?

  2. But business is, of course, wholly dependent on our membership of the EU & exposed to the rigours of the world we’ll all be poverty stricken by the end of February…

  3. “Japan’s biggest supermarket chain has called on Ocado to build its new automated warehouses, even though the country leads the world in robot technology.”

    This is another of those “journalists know absolutely sod all”. It ain’t about knowing about the physical robots (Ocado are probably buying them, maybe from Italy, Germany, Japan), it’s the specific business problem, which goes beyond physical robots. It’s about developing and refining the process using the robots.

  4. ‘Just to crow a bit. On the 25th I tipped Ocado.’

    “Past performance is no guarantee of future results.”

    And every gambling house, from Monte Carlo to Wendover, NV, knows that some payout brings them back. People recall their successes, even if they are few.

  5. Yep when the plumber turns up your not paying for the guy who made the tools your paying for the guy that knows how to use them to fix your leak

  6. Aren’t you paying for… the bloke who was paid to teach the plumber?

    If it’s a spanish plumber, highly unlikely. They rely mostly on the power of prayer.

  7. Ocado also building in USA and some smaller regional centres in UK

    Ocado mkt cap is higher than M&S + Sainsburys combined

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