Jump to content
House Price Crash Forum

Recommended Posts

This is great article in Moneyweek and 100% spot on:http://www.moneyweek...eist-02802.aspx

In essence, like all the national newspapers it is saying don't touch the Ocado IPO with a bargepole. The whole thing has been set up to allow the founders to exit the business with a huge wedge of cash (£200m), for a business that has little in terms of profit growth prospects.

In essence the IPO is overvaluing Ocado by £400m, that is £200m straight to the banksters who founded the firm and who want out believing they are entitle to sell up for a huge profit and then £200m to fund expansion for a firm that is incapable of expanding its profits.

Meanwhile the whole thing was founded offering Waitrose products, but this agreement is flimsy and frankly if you go to Waitrose today they offer home delivery.

I don't want to knock the firm too much as I do actually use them and the service is good, but it is not the firm that is the problem, its actually the banksters behind it and their excessive demand for reward without ever making a profit.

Is this why bankers get away with what they do? The public never ask the right questions.

Edited by Mikhail Liebenstein

Share this post


Link to post
Share on other sites

This is great article in Moneyweek and 100% spot on:http://www.moneyweek...eist-02802.aspx

In essence, like all the national newspapers it is saying don't touch the Ocado IPO with a bargepole.  The whole thing has been set up to allow the founders to exit the business with a huge wedge of cash (£200m), for a business that has little in terms of profit growth prospects.

In  essence the IPO is overvaluing Ocado by £400m, that is £200m straight to the banksters who founded the firm and who want out believing they are entitle to sell up for a huge profit and then £200m to fund expansion for a firm that is incapable of expanding its profits.

Meanwhile the whole thing was founded offering Waitrose products, but this agreement is flimsy and frankly if you go to Waitrose today they offer home delivery.

I don't want to knock the firm too much as I do actually use them and the service is good, but it is not the firm that is the problem, its actually the banksters behind it and their excessive demand for reward without ever making a profit.

Is this why bankers get away with what they do? The public never ask the right questions.

i think their service is way ahead of the rest - Waitrose dont deliver in our part of the UK

I am not subscribing for any shares though

Share this post


Link to post
Share on other sites

This is great article in Moneyweek and 100% spot on:http://www.moneyweek...eist-02802.aspx

In essence, like all the national newspapers it is saying don't touch the Ocado IPO with a bargepole. The whole thing has been set up to allow the founders to exit the business with a huge wedge of cash (£200m), for a business that has little in terms of profit growth prospects.

In essence the IPO is overvaluing Ocado by £400m, that is £200m straight to the banksters who founded the firm and who want out believing they are entitle to sell up for a huge profit and then £200m to fund expansion for a firm that is incapable of expanding its profits.

Meanwhile the whole thing was founded offering Waitrose products, but this agreement is flimsy and frankly if you go to Waitrose today they offer home delivery.

I don't want to knock the firm too much as I do actually use them and the service is good, but it is not the firm that is the problem, its actually the banksters behind it and their excessive demand for reward without ever making a profit.

Is this why bankers get away with what they do? The public never ask the right questions.

The thing that put me off buying any shares, was the fact I read they hadn't made any profit since inception!

I guess common sense goes out of the window for many, when you are made to feel special and one of the chosen eligible few (who actually spent £300 at Ocado in the last year!) :lol:

Share this post


Link to post
Share on other sites

Private Eye pretty much said the same and slated it. Its got a lot of Goldman Sachs guys behind it! Avoid!

You might as well order a bumper load of groceries and bury the lot in the garden.   At least that way you might grow an apple tree or something useful .

Otherwise Ocado share are 100% guaranteed to lose you money from the flotation price.

Share this post


Link to post
Share on other sites

I completely agree - don't touch with a barge pole, given the lack of profit and flimsy agreement with Waitrose.

I've been round their warehouse in Hatfield - it's very impressive but is over-specced and must have been hideously expensive.

It seems that a lot of people think that they're drastically overvaluing the company:

http://uk.reuters.com/article/idUKTRE66C4OE20100713

http://www.guardian.co.uk/business/2010/jul/06/ocado-high-flotation-value

This one is even more interesting, about the problems the company faces if the listing fails:

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7884389/Ocado-auditors-flagged-up-grocers-going-concern-fears.html

Only invest if you want to lose money!

Edit - Just read the Moneyweek piece now and it's very interesting and seems pretty much spot on!

Edited by Fishbone Glover

Share this post


Link to post
Share on other sites

You might as well order a bumper load of groceries and bury the lot in the garden. At least that way you might grow an apple tree or something useful .

Otherwise Ocado share are 100% guaranteed to lose you money from the flotation price.

They have hired no less then eight banks including Goldman to work on the scam float and have hired Brunswick to handle the PR (thought they were busy massaging BP's image?). Its run by ex Goldman Sachs bankers, and even Michael Grade (presided over £2.7bn loss at ITV) has got his snout in the trough.

Edited by SirStirlingSlumlord

Share this post


Link to post
Share on other sites

One of their one-way-bets? Clever!

'They' have built up a database over the years and know where all their customers live, ie the richer ones who are likely to go for the lure of the share greed!

Left it too late methinks - most wise have now caught on to their casino games!

Share this post


Link to post
Share on other sites

I completely agree - don't touch with a barge pole, given the lack of profit and flimsy agreement with Waitrose.

Only invest if you want to lose money!

Edit - Just read the Moneyweek piece now and it's very interesting and seems pretty much spot on!

Who should I make the cheque too?   Is the Former Goldman Sachs Employees Benevolent Fund?

Share this post


Link to post
Share on other sites

If the John Lewis Partnership behaved a bit more like Goldman, they'd cancel the supply contract just before the IPO, drive the value down to £200m bankrupting the investors and then buy it for a song before reinstating the Waitrose product lines.

May be the John Lewis Partnership could take them over for a song and make them all partners!

Share this post


Link to post
Share on other sites

If the John Lewis Partnership behaved a bit more like Goldman, they'd cancel the supply contract just before the IPO, drive the value down to £200m bankrupting the investors and then buy it for a song before reinstating the Waitrose product lines.

May be the John Lewis Partnership could take them over for a song and make them all partners!

Over the years Waitrose has done quite well from this shambles as they've been a supplier. They may well have bought the business if it had been successful but they've observed the Ocado business model doesn't work and hence they've started their own internet delivery service in competition.

Knowing that Ocado is worthless, John Lewis has given it stake to its pension fund and is hoping the float will fill a black hole in it.

Share this post


Link to post
Share on other sites

Over the years Waitrose has done quite well from this shambles as they've been a supplier. They may well have bought the business if it had been successful but they've observed the Ocado business model doesn't work and hence they've started their own internet delivery service in competition.

Knowing that Ocado is worthless, John Lewis has given it stake to its pension fund and is hoping the float will fill a black hole in it.

At the moment the standalone distribution centre warehouse model for online grocery (Ocado) doesn't really stack up against the already built and staffed distribution centre called a supermarket (certainly not outside of high density population areas) - this will probably not always be the case. Although the early start-ups in a model often don't end up the long-term winners.

Share this post


Link to post
Share on other sites

Seen two Ocado van smashes near me this year, one with motorbike possibly fatal. Notoriously bad drivers.

Share this post


Link to post
Share on other sites

keis_38_39-489.jpg

There seem to be more little boys pointing fingers than sycophants in this case, though...

How can Ocado be worth anything more than the fire-sale value of its assets? It consists of a website, a warehouse, a load of vans, a load of staff, a shaky contract with one supplier who is looking to cut them out anyway and it has consistently lost money for ten years.

Assuming the vans are leased and the warehouse is mortgaged this company is worth fook all!

Edited by Mr Yogi

Share this post


Link to post
Share on other sites

This is great article in Moneyweek and 100% spot on:http://www.moneyweek...eist-02802.aspx

In essence, like all the national newspapers it is saying don't touch the Ocado IPO with a bargepole. The whole thing has been set up to allow the founders to exit the business with a huge wedge of cash (£200m), for a business that has little in terms of profit growth prospects.

In essence the IPO is overvaluing Ocado by £400m, that is £200m straight to the banksters who founded the firm and who want out believing they are entitle to sell up for a huge profit and then £200m to fund expansion for a firm that is incapable of expanding its profits.

Meanwhile the whole thing was founded offering Waitrose products, but this agreement is flimsy and frankly if you go to Waitrose today they offer home delivery.

I don't want to knock the firm too much as I do actually use them and the service is good, but it is not the firm that is the problem, its actually the banksters behind it and their excessive demand for reward without ever making a profit.

Is this why bankers get away with what they do? The public never ask the right questions.

As this thread is brought up again >>>

Warning

Having skimmed thru their background, at least one of the founders is a former partner/director at Goldman Sachs! Say-no-more! :rolleyes:

They are setting people up for a fall in my view. Steer well clear!

(GREEN - Grocery) :P

Edited by erranta

Share this post


Link to post
Share on other sites

They are setting people up for a fall in my view. Steer well clear!

But in the meanwhile those that bought have seen their value nearly double.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 192 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.