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Ocado Share Discussion Threads
Showing 9226 to 9247 of 9250 messages
|Those shorts have absolutely nothing to do with Brexit. Each of them, possibly bar Sainsbury's has a very good case against on valuation, and or performance and or corporate governance terms.
Went short Ocado again this morning. Next leg down I think, and probably then end of the line for some US growth investors as they look to liquidate. In the UK the market for online groceries is basically saturated.|
Betting Against U.K. Retailers Hits 2-Year High Amid Brexit Jitters
Dow Jones News
Marks & Spencer (LSE:MKS)
Intraday Stock Chart
Today : Friday 7 April 2017
By Philip Waller
LONDON--Betting against U.K. retail stocks has hit a two-year high as investors fret about the potential impact on the sector of a "hard Brexit", a study released Thursday showed.
Grocers including Ocado Group PLC (OCDO.LN), Wm Morrison Supermarkets PLC (MRW.LN) and J Sainsbury PLC (SBRY.LN) hold the top three places respectively in a list of the most-heavily shorted stocks in the sector compiled by research group IHS Markit.
Marks & Spencer Group PLC (MKS.LN), Halfords Group PLC (HFD.LN), Sports Direct International PLC (SPD.LN) and Pets at Home Group PLC (PETS.LN) have also been targets of short-selling, in which investors bet on a downward movement in shares by borrowing and selling them in the hope of buying them back at a profit later.
Online grocer Ocado is also the third most-shorted stock in the FTSE350 Index as a whole, with more than 15% of its shares out on loan.
Investors keen to hedge against uncertainty caused by the U.K.'s vote to leave the EU have been shorting UK stocks with a heavy domestic revenue profile since the middle of last year, IHS Markit said.
Shorting of retailers, many of which get most or all of their earnings from the U.K. market, has surged in the last few weeks as Britain has triggered Article 50, the EU's mechanism by which an existing member leaves the bloc.
The bets now represent 3.3% of the total shares of the 43 retailers in IHS Markit's study, the highest average for the sector in more than two years.
IHS Markit analyst Simon Colvin said a growing number of disputes related to the U.K.'s EU exit, such as last week's row over the sovereignty of British overseas territory Gibraltar, risks a so-called "hard Brexit", in which the U.K. would quit the EU without a trade deal after the official two-year negotiating period.
"Such an outcome could leave retailers paying more for imported goods, owing to both tariffs and a falling pound, while potentially limiting their access to the foreign staff who play an important role in the U.K.'s service industry," Mr Colvin said.
While supermarkets have been shorted for a while due to competition from discounters, more bearish sentiment towards clothing and sport goods retailers in the last few weeks indicates the market is steeling itself for a slowdown in non-essential spending, he added.
Short interest in M&S has more than doubled in the year to date to 9% of shares outstanding, while shorting of Sports Direct and Pets at Home has climbed by more than a third since the start of the year.
Write to Philip Waller at firstname.lastname@example.org
(END) Dow Jones Newswires
April 06, 2017 07:30 ET (11:30 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Please do your own research.|
|They didn't build them robots at Andover then bwakem with the 5G network or am I just imagining it ? Just a delivery company lol ?
Check out their new venture !|
|quokkatech - but they are just a delivery company with negative margins. It doesn't matter how advanced their sheds are.|
|I don't think that they were ever going to build the new warehouses at Andover and Erith without increasing their debt lol ?
They now have 2 sheds that are the most advanced on the planet, time to make them pay|
|As far as I can see.
debt £ 90M
So all in £200M of debt plus market cap of £1.7B
Full year profits £12M.
Very odd to be worth more than a pound?|
|The more they 'grow' the more money they lose. They can never break even.|
|Double digit growth quarter on quarter, how is this dreadful lol ?|
|The usual nonsense from OCDO this morning. All positive spin but the underlying numbers are dreadful again.
Cash down £9.7m in 3 months
Debt up £6.5m in 3 months
Net cash outflow £16.2m in 3 months
Why bother reading the small print in a bull market though? Just buy everything.|
|Also Amazon aren't interested!|
|The main shareholders are against it|
|maybe amazon should takeocer Ocado .|
|I overestimated how much the bulls could do. Very large volume where clearly sellers were more eager than buyers.|
|To add to the earlier excellent analysis of another set of financials... I note that the depreciation charge is up by only £900,000 to £61m, compared with fixed assets being up by £48m. Every other year the depreciation has been 14% plus, so using this % on the increased assets I reckon the EBITDA is arguably overstated by £7m|
|Monthly chart - traders paradise - not much you can do with it as an investor tho until it breaks out on positive news. Always a strange 'basket' case fundamentally lol - but great service and growing loyal fan base has an intrinsic value I guess. Cant help feeling they need more aggressive marketing (already pretty aggressive with intro offers) or to do another big 'basics' deal to tip the scales - if they don't someone like Amazon (relentless with the prime deal) which already has the warehouses & next day distribution may just come in and spoil things. Amazon don't do the fresh or frozen foods at the mo cos you need special refrigerated warehousing & transport, more dry foods/HH essentials, but if they start it could really upset the apple cart.|
|Not really, it has had a huge short book forever, and one which has been very profitable. The trade does require patience as potentially the price goes well above 300.|
|Hpcg - That's the thing though, there is quite an improvement in there on the growth side yet 16% of the stock is already on loan. Those two together pose a dangerous set up, for anyone thinking of going short IMO.|
|bwakem - cash versus debt first thing I look at in the results. Just as you observe, burning through it quicker than one could through twenties on a grate. As we know though pure growth investors prefer other metrics. Personally waiting for this move to run out of steam then back short again.|
|Bwakem, what are you on about?? This is a very improved set with a strong move in the right direction...And the market (which is bigger than you!) agrees!|
|Another dreadful set of numbers from OCDO this morning. Debt up £86.6m with cash up only £5.1m making a cash outflow of £81.5m in just 12 months.
Rights issue anyone?|
|Troubles ahead. I sold about 3 months ago. There will be new ventures but they are going to struggle against Amazon|
|Keep seeing Amazon Fresh in London. I think they are starting to eat Ocado's pie. Lots of people have Amazon Prime.|